SBB creditors exchange debt for residential bonds in $158 million swap

FILE PHOTO: The logo of SBB is seen at company's headquarters in Stockholm, Sweden, September 14, 2023. REUTERS/Marie Mannes/File Photo

STOCKHOLM (Reuters) - Swedish property firm SBB said on Friday that some creditors had agreed to exchange debt for bonds in its residential unit Sveafastigheter in the amount of $157.5 million.

The transaction somewhat reduces the leverage of struggling landlord SBB's balance sheet which had net debt of 56 billion crowns at the end of March, while the company continues to move the Sveafastigheter unit towards a listing or stake sale.

The new bonds in Sveafastigheter would amount to 110.9 million euros ($118.66 million) and 412.5 million Swedish crowns ($38.83 million), SBB said in a statement, for a combined total of $157.5 million.

The debt conversion was smaller than the maximum of $235 million swap originally offered by SBB.

(Reporting by Marie Mannes and Greta Rosen Fondahn, editing by Terje Solsvik)