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Preferred Shares and Partial Debt Refinancing

Date
10 Aug 2009
Nippon Sheet Glass Co Ltd (‘the Company’) announces that, following the Company's announcement on 20 May 2009 of its intention to issue preferred shares, shareholder approval of the necessary changes to the Company's Articles of Incorporation was duly sought and granted at its 143rd Ordinary General Meeting of Shareholders held on 26 June 2009.

Consequently, the Company has entered into the announced investment agreement with UDS Corporate Mezzanine Limited Partnership and UDS Corporate Mezzanine No. 3 Limited Partnership (collectively, the “Allottees”), to issue the JPY 30 billion of Type A Preferred Shares (the “Preferred Shares”) through a third-party allotment to the Allottees, and to reduce capital and capital surplus by the equivalent amount of the increase in capital and capital surplus attributable to the issuance of the Preferred Shares.

The Company also announces that it has refinanced debt maturities of JPY 47.5 billion. New facilities have been signed during July and early August 2009 with a number of institutions. The weighted average margin of the new borrowing facilities is 2.2 percent, which at current interest rates would be approximately 2.8 percent. The weighted average maturity of these facilities is 4.4 years.

The total proceeds of JPY 77.5 billion will be used to refinance existing borrowings maturing in 2010, part refinance existing borrowings maturing in 2011 and for general corporate purposes.

These financing activities have been designed to reinforce the Company's financial strength with an increase in equity capital and reduce refinancing risks by increasing the maturity profile of its borrowings.