(Bloomberg) -- Swedish landlord SBB’s plan to buy back as many as 50 million Class D shares with cash is “credit negative” for bondholders since the company’s liquidity position will weaken further, analysts at Arctic Securities said in a note to clients.

Cash-strapped Samhallsbyggnadsbolaget i Norden AB said it’s repurchasing its own shares in order “to create the most optimal capital structure possible,” according to a statement Monday. The move comes as the company rushes to secure fresh financing to help tackle a $5.6 billion debt pile that made it a poster-child for Sweden’s commercial property crisis.

SBB’s perpetual hybrid notes edged lower by 0.1 euro cents to 35.0, according to data compiled by Bloomberg. Its senior unsecured bonds due in January 2025 were also slightly lower at 92.9 bid. SBB’s D shares were up 17.6% by 10:15 a.m. Stockholm time.

“We are continuously implementing measures to balance the company’s need for liquidity and efficient funding,” SBB Chief Executive Officer Leiv Synnes said in the statement.

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