Blackstone is close to finalising an $800m private credit facility for Justrite Safety Group, after the safety-products maker abandoned a bank-led loan due to weak investor demand, Bloomberg reports.

The seven-year loan will be priced at 4.75 percentage points above the US benchmark rate and will include a delayed-draw term loan, according to people familiar with the matter.

Justrite, owned by Audax Private Equity, had initially sought $700m in bank financing from Citizens Financial Group to refinance debt and fund acquisitions. That deal faltered as leveraged loan investors showed limited appetite, forcing the company to withdraw the transaction and turn to private credit markets.

Blackstone’s financing highlights the competitive edge of direct lenders, who continue to capture sizeable refinancing and acquisition-related deals at the expense of banks. The shift reflects broader market dynamics, with private credit providing flexible structures and higher leverage in a subdued buyout environment.

In recent weeks, Apollo and Ares arranged a $4bn package for Leaf Home, while a group led by BlackRock provided debt financing for software platform Syndigo.

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