Goodwill amortisation from its purchase of Pilkington Plc will cost Nippon Sheet Glass $1.9BN/year over a 20-year payment period, the Japanese company said on 8/03/06. Nippon Sheet Glass (NSG) Chairman/CE Yozo Izuhara also said new bank borrowing to finance the deal is about JPY 140BN, which it should be able to pay off in a few years. "Judging from Pilkington's cash flow so far, it is generating about JPY 80BN & even with other expenses we should be able to pay off the debt in a few years", Izuhara said in an interview. NSG said 27/02/06 that it would buy the remaining 80% of Pilkington it did not own in a USD 5.18BN all-cash deal worth, a figure including Pilkington's existing debt. Izuhara said that by using cash on hand & issuing convertible bonds, new borrowing will be cut to JPY 140BN, which NSG can pay off without affecting its credit rating.
