The firm said the transaction, led by ANZ Investment Bank’s project finance team, and including advice from ANZ Capital Solutions, will provide initial finding of $215 million to the pulpwood operator.

This will be drawn in two tranches, the first totalling approximately $75 million, which will be used to purchase a “yield asset”. This has been structured to generate cashflow to be used to pay 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,” said Blakes partner Martin Coleman, who led the legal team.

The second tranche of approximately $140 million will be used by GSP to fund future operational growth.

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

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

As well as Coleman, Blakes’ team acting for ANZ comprised Jeremy King, John Tanner, Victoria Graham and Corey Johnson.

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Freehills acted for GSP.