(Bloomberg) -- Adler Group SA paid a 21% coupon to raise funds from the bond market in a sign of the intense funding stresses buffeting the beleaguered German landlord. 

The firm sold €191 million ($203 million) of new notes after having extended the original deadline for book-building by 10 days through to Friday to give itself more time to attract investors, said people familiar with the matter, who asked not to be identified because the details of the transaction are private.

The coupon on the deal offers investors around 2.5 times the average current yield on the Bloomberg Pan-European High Yield index.

It’s the first public debt sale for Adler since short-seller Fraser Perring leveled accusations of widespread fraud against the property giant two years ago, sparking a selloff in the company’s debt that forced it into a €6 billion restructuring sealed earlier this year. Adler has denied the allegations. 

The cost of the latest bond sale shows the heavy price the company is paying for its deteriorating credit credentials. Adler lost its investment-grade rating from S&P Global rating in 2020 and is now rated CCC+ by the firm.

The company last tapped the bond market in April 2021 to raise debt at a 2.5% yield. The 21% yield on the latest deal compares with the implied cost of new debt for similarly-rated companies across Europe, which a Bloomberg index puts at just over 15%.

A representative for Adler didn’t respond to a request for comment. 

The new bonds will rank junior to €937.5 million super-senior new money provided as part of the debt restructuring, but senior to all the remaining Adler debt.

The firm will use the proceeds from the new bonds in part to repay €102 million convertible bonds coming due in November. 

The group has been focusing on raising cash to keep up with its debt payments. Earlier this month, it sold a portfolio of apartments and co-living units in Berlin to generate net proceeds of about €130 million.

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