Cyprus Mail
BusinessInternational

E-cigarette maker Juul to explore options including financing

juul electronic cigarettes

Juul Labs Inc said on Friday it is in the early stages of exploring several options including financing alternatives, as the company deals with lawsuits and a probable ban on sales of its e-cigarettes by US health regulators.

Bloomberg News earlier reported, citing sources, that Juul’s bankers at Centerview Partners are sounding out investors for a possible $400 million first-lien term loan due August 2023.

The proceeds would help refinance an existing term loan, which has around $394 million outstanding and matures on the same date, the report added.

A spokesperson for Juul told Reuters that the company is looking at options to protect its business and to address the “impact of the FDA’s now stayed order so we can continue offering our products to adult consumers who have or are looking to transition away from traditional cigarettes.”

Centerview Partners declined to comment when contacted by Reuters.

Bloomberg News in its report said Juul was also considering a new $150 million second-lien term loan, which may have an August 2024 maturity, to help pay down some of the first-lien term loan and to increase liquidity, the report said.

Financing proposals for either loan are due July 21, according to the report.

Last month, the Food and Drug Administration (FDA) blocked sales of Juul e-cigarettes and said the applications “lacked sufficient evidence” to show that sale of the products would be appropriate for public health.

However, Juul appealed the agency’s order and earlier this month FDA put on hold its ban saying it would do an additional review of the company’s marketing application.

Follow the Cyprus Mail on Google News

Related Posts

Bankman-Fried sentenced to 25 years for multi-billion dollar FTX fraud

Reuters News Service

Kremlin says Russia working with partners after report on payment delays for oil

Reuters News Service

CBC governor promotes digital financial literacy [video]

Souzana Psara

President urges swift progress on tax reform

Kyriacos Nicolaou

Startup World Cup coming to Cyprus — $1 million grand prize on the line

Souzana Psara

Sterling bows to dollar strength after UK GDP data

Reuters News Service