Melbourne October 20 2006: LAWFUEL – Law News Network – Blake Dawso…

Melbourne October 20 2006: LAWFUEL – Law News Network – Blake Dawson Waldron (BDW) advised ANZ on its $215 million structured financing facility for pulpwood MIS operator, Great Southern Plantations Limited (GSP).

The transaction, led by ANZ Investment Bank’s Project Finance team and advised on by ANZ Capital Solutions, provides initial funding of $215 million in two tranches. The first tranche of approximately $75 million will be drawn by GSP and used to purchase a Yield Asset. The second tranche of approximately $140m will be used by GSP to fund future operational growth.

The innovative funding structure will enable GSP to borrow against a land portfolio of more than 1,200 titles (approximately half of GSP’s extensive existing pulpwood land bank) and have cost efficient access to additional capital pools in the future.

BDW partner Martin Coleman led the team and said: “This has been an excellent example of team work and was particularly complex due to the large number of land holdings involved. The legal team worked closely with real estate experts in each state, including BDW lawyers in Melbourne, Perth, Brisbane and Sydney.

“As GSP mentioned in its announcement to the ASX, the key to the Yield Asset is that it has been structured to generate quarterly cash flow over its term for the purpose of paying interest and operating costs. Accordingly, the funding does not give rise to interest payments or other ongoing cash servicing obligations for GSP as they are serviced by the Yield Asset payments.”

The BDW team acting for ANZ comprised of Martin Coleman, Jeremy King, John Tanner (Perth), Victoria Graham and Corey Johnson.

Freehills acted for GSP.

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