Juul Labs Inc is looking into several different options among them financing alternatives in the wake of a likely ban on the sale of its e-cigarettes in the US, reports Reuters.
The US Food and Drug Administration had banned the sale of Juul products in the US last month, however, Juul managed to appeal the decision prompting the ban to be put on hold. The e-cigarette giant is now reportedly exploring several options including financing alternatives to protect its business. According to Bloomberg News, Juul’s bankers at Centerview Partners are sounding out investors for a possible USD 400 million first-lien term loan due August 2023. This would help to refinance an existing term loan with around USD 394 million outstanding that comes due on the same date. Bloomberg News also reported that Juul was considering a new USD 150 million second-lien term loan to increase liquidity and help with the first-lien term loan.
A Juul spokesperson told Reuters that the company was looking 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."