Blackstone is in advanced talks to provide more than $800m in private credit financing to Justrite Safety Group, after the Audax Private Equity-owned company abandoned a leveraged loan sale, according to a report by Bloomberg citing unnamed people familiar with the matter.
The financing package is expected to include a seven-year loan priced at around 475 basis points over the US benchmark, as well as a delayed-draw term loan, sources said. Justrite had initially explored a $700m private credit package before shifting away from the syndicated loan market.
Citizens Financial had previously launched a $595m term loan and $100m delayed-draw facility to refinance debt and support acquisitions. However, tepid demand from loan investors forced the deal to widen pricing and eventually drop the delayed-draw portion, prompting Justrite to turn to direct lenders.
The move underscores the growing role of private credit in refinancing activity, with direct lenders increasingly stepping in as banks struggle to syndicate new loans. Recent weeks have seen Ares Management and Apollo Global provide financing to Leaf Home, while a BlackRock-led group has backed Syndigo’s debt refinancing.
Blackstone declined to comment, while Audax Private Equity and Justrite did not immediately respond.
