Justrite Safety Group, the safety-products manufacturer owned by Audax Private Equity, is reportedly turning to the private credit market to secure approximately $700m in debt financing after its efforts to raise capital through the broadly syndicated loan market faltered, according to a report by Bloomberg citing sources familiar with the matter.
Audax has approached direct lenders, including Blackstone, to explore a private lending solution, the people said, speaking on condition of anonymity due to the confidential nature of the discussions.
Negotiations are ongoing, with lenders expected to demand higher borrowing costs than those offered in the earlier leveraged loan syndication process. However, the outcome remains uncertain, and a direct-lending deal may not come to fruition.
Earlier this month, Citizens Financial Group arranged a $595m term loan alongside a $100m delayed-draw facility for Justrite, intended to refinance existing debt and support potential acquisitions. However, weak investor appetite in the syndicated loan market prompted Justrite to drop the delayed-draw tranche and widen price guidance on the remaining term loan to around four percentage points above the Secured Overnight Financing Rate, Bloomberg News reported. The lender-commitment deadline was subsequently extended to August 19.
Justrite currently holds a $570m loan maturing in June 2026, including a $100m add-on facility arranged by Citizens last year.
Blackstone, Citizens, Audax, and Justrite declined to comment on the financing.
Recent reports indicate direct lenders are also active in funding other deals, such as those involving Leaf Homes and ABC Technologies Holdings, where private credit structures provide borrowers with enhanced flexibility amid tightening conditions in the leveraged finance market.
