News Release

May 20, 2015

Company Name:
Sankyo Tateyama, Inc.
Representative:
Kiyotsugu Yamashita, President
(Securities Code:
5932 First Section of Tokyo Stock Exchange)
For Inquiry:
Kazuhiko Hase, General Manager, Finance Department
(Telephone: +81-766-20-2121)

Issuance of Zero Coupon Convertible Bonds due 2018 and Zero Coupon Convertible Bonds due 2020 in the form of a Third Party Allotment

Sankyo Tateyama, Inc. (the “Company”) hereby announces the issuance of Zero Coupon Convertible Bonds due 2018 (bonds with stock acquisition rights, tenkanshasaigata shinkabu yoyakuken-tsuki shasai, hereinafter referred to as the “2018 Bonds”) and Zero Coupon Convertible Bonds due 2020 (bonds with stock acquisition rights, tenkanshasaigata shinkabu yoyakuken-tsuki shasai, hereinafter referred to as the “2020 Bonds”, and together with the 2018 Bonds, the “Bonds with Stock Acquisition Rights”) for the total amount of JPY15 billion (JPY7.5 billion for each series), through Third Party Allotment to Deutsche Securities Inc., pursuant to a resolution of a meeting of the Board of Directors as of May 20th, 2015. The Company has been informed that Deutsche Securities Inc. will sell call options of the Bonds as warrants to non-Japanese institutional investors.

1. Background, purpose and reason for the Issuance of the Bonds
The Company has been making efforts to improve its business by focusing on its strategies to “strengthen remodeling and renovation business”, “strengthen non-construction material businesses” and “develop overseas business” together with cost saving efforts, in order to achieve its mid-term management plan under its basic strategy of “achieve further growth and create new value”. Also, the Company has laid out its long-term vision of “Life with Green Technology -Enriches Lives through Green Technology-” and thus keeps expanding its business to contribute to a positive global environment and enriching people’s lives. The Company’s market environment is still uncertain due to unforeseeable factors such as the increasing aluminum price, however the current domestic economy seems to be brisk, with the recovery of personal consumption and the implementation of economic policies including Eco-Point program. Under such an environment, the Company drives continued growth by keeping focus on its strategies in order to realize the Company’s further growth strategy. To complete its continuous development through the strategies, the Company acquired the extrusions business of Aleris International, Inc on March 1st, 2015 and Thai Metal Aluminium Co., Ltd. on March 2nd, 2015. In order to refinance the short-term debt arisen from these two acquisitions, the Company has decided to issue the Bonds.

2. Use of Proceeds
All proceeds from the issuance of the Bonds will be used for repayment of the acquisition debt of the extrusions business of Aleris International (approximately JPY5.2 billion), Inc. and Thai Metal Aluminium Co., Ltd (approximately JPY10.0 billion).

End of Document

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