Embattled SBB Narrows Financing Gap With $228 Million Share Sale
- SBB unit to sell preference shares to Morgan Stanley
- Deal helps firm meet funding target of 8 billion kronor
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SBB, the landlord at the center of Sweden’s property crunch, is selling 2.4 billion kronor ($228 million) of shares in a new subsidiary to Morgan Stanley, taking a step toward narrowing a financing gap.
Samhallsbyggnadsbolaget i Norden AB — as SBB is formally known — is racing to plug a cash shortfall of 8.1 billion kronor over the next 12 months after amassing an unsustainable debt pile during the cheap-money era. With bond markets and bank lending all but closed, the company is seeking to raise fresh funds from asset sales and new investors. In the wake of a downgrade to a junk credit rating in May, a sale of the entire company is also up for consideration.