Audax Private Equity is in talks with private credit firms including Blackstone to secure around $700m in debt financing for Justrite Safety Group, after a bank-led refinancing effort stalled, according to sources cited by Bloomberg.

Earlier this month, Citizens Financial launched a $595m term loan and a $100m delayed-draw loan to refinance existing debt and support acquisitions at Justrite. However, tepid investor demand forced the withdrawal of the delayed-draw facility and widened pricing on the remaining tranche.

Faced with limited appetite in the broadly syndicated market, Audax has approached direct lenders to negotiate a private loan package, though discussions remain ongoing and no agreement has yet been reached. Any new private facility would likely carry higher borrowing costs than the syndicated debt initially marketed.

Justrite, a safety products manufacturer, has a $570m loan maturing in June 2026, some of which stems from a Citizens-led add-on arranged last year.

The move underscores a growing reliance on private credit as leveraged finance markets face investor pushback. Direct lenders are already in discussions on transactions involving Leaf Homes and ABC Technologies, highlighting the shifting balance between banks and private credit providers in large-scale debt financing.

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