(Bloomberg) -- A struggling Swedish landlord has reached out to its shareholders asking for funding as it seeks to change the terms of an outstanding bond. 

Studentbostader i Norden AB, a provider of student housing, plans to raise 331 million kronor ($29.6 million) in a rights issue to shore up its finances, it said in a statement.

The property company, which has lost 72% of its market value so far this year, dropped as much as 8% on Friday. It blamed the deterioration of its financial position on high inflation and increased borrowing costs. 

The company also seeks to postpone the maturity date of a bond, among other amendments, according to a separate statement. Bondholders with 63.8% of the instruments have undertaken to approve the changes.

Related Developments:

  • The company’s largest shareholder, Fastator AB, dropped as much as 10.8% on Friday, and its third-biggest owner SBB declined by 1.2%.
  • Its shares currently trade at 0.9 krona each, which can be compared to the subscription price in the rights issue of 1 krona per share.
  • As a consequence of the rights issue, Studentbostader won’t complete a planned divestment of a portfolio in Copenhagen.

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