July 15 (Reuters) – Juul Labs Inc mentioned on Friday it’s within the early levels of exploring a number of choices together with financing alternate options, as the corporate offers with lawsuits and a possible ban on gross sales of its e-cigarettes by U.S. well being regulators.
Bloomberg Information earlier reported, citing sources, that Juul’s bankers at Centerview Companions are sounding out traders for a potential $400 million first-lien time period mortgage due August 2023. (https://bloom.bg/3O9qStl)
The proceeds would assist refinance an present time period mortgage, which has round $394 million excellent and matures on the identical date, the report added.
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A spokesperson for Juul instructed Reuters that the corporate is choices to guard its enterprise and to deal with the “impression of the FDA’s now stayed order so we are able to proceed providing our merchandise to grownup shoppers who’ve or want to transition away from conventional cigarettes.”
Centerview Companions declined to remark when contacted by Reuters.
Bloomberg Information in its report mentioned Juul was additionally contemplating a brand new $150 million second-lien time period mortgage, which can have an August 2024 maturity, to assist pay down a few of the first-lien time period mortgage and to extend liquidity, the report mentioned.
Financing proposals for both mortgage are due July 21, in line with the report.
Final month, the Meals and Drug Administration (FDA) blocked gross sales of Juul e-cigarettes and mentioned the functions “lacked enough proof” to point out that sale of the merchandise could be acceptable for public well being. learn extra
Nonetheless, Juul appealed the company’s order and earlier this month FDA placed on maintain its ban saying it could do an extra evaluate of the corporate’s advertising software. learn extra
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Reporting by Ananya Mariam Rajesh in Bengaluru; Enhancing by Shailesh Kuber
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