Financing of Altria’s $12.8 Billion Investment in JUUL


Simpson Thacher represented JPMorgan Chase Bank, N.A. in connection with a $14.6 billion term loan facility for Altria Group, Inc. (“Altria”) to finance Altria’s acquisition of a 35% equity interest in JUUL Labs, Inc. (“JUUL”) for $12.8 billion.

$1.8 billion of the term loan facility remains undrawn and may be used by Altria to finance its announced investment in Cronos Group Inc.

JUUL manufactures and markets e-vapor products. JUUL’s products include device kits, JUULpods, and accessories in different flavors. JUUL was incorporated in 2007 and is based in San Francisco, California.

Altria is the parent company of Philip Morris USA Inc., U.S. Smokeless Tobacco Company LLC, John Middleton Co., Sherman Group Holdings, LLC and its subsidiaries, Nu Mark LLC, Ste. Michelle Wine Estates Ltd. and Philip Morris Capital Corporation. Altria also holds an equity investment in Anheuser-Busch InBev SA/NV. The brand portfolios of Altria’s tobacco operating companies include Marlboro, Black & Mild, Copenhagen, Skoal, MarkTen and Green Smoke.

The Simpson Thacher team includes Justin Lungstrum (Picture) and Robyn Cho (Banking and Credit); Edward Tolley III, Arjun Koshal and Grady Chang (Capital Markets); Ed Chung (Corporate); Jonathan Cantor and Jasmine Hay (Tax); and Abram Ellis, Joshua Levine, Mark Skerry and Daniel Levien (Regulatory).

Involved fees earner: Jonathan Cantor – Simpson Thacher & Bartlett; Grady Chang – Simpson Thacher & Bartlett; Robyn Cho – Simpson Thacher & Bartlett; Edward Chung – Simpson Thacher & Bartlett; Abram Ellis – Simpson Thacher & Bartlett; Jasmine Hay – Simpson Thacher & Bartlett; Arjun Koshal – Simpson Thacher & Bartlett; Daniel Levien – Simpson Thacher & Bartlett; Joshua Levine – Simpson Thacher & Bartlett; Justin Lungstrum – Simpson Thacher & Bartlett; Mark Skerry – Simpson Thacher & Bartlett; Edward Tolley – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: JPMorgan Chase & Co.;

Author: Ambrogio Visconti