Redwood Trust plans to offer $150,000,000 of convertible senior notes due 2030 and may sell up to an additional $22,500,000. For investors, the proceeds are intended to fund 2027 Notes repurchases, up to $20.0 million of common-stock repurchases and general corporate and Investment activities.

Key Highlights

  • Redwood Trust declared a third-quarter common Dividend of $0.18 per share and a Series A preferred dividend of $0.625 per share.
  • Proposed dispositions cover legacy bridge loans with aggregate unpaid principal of up to approximately $190 million.
  • The company estimates the dispositions would reduce Book Value per share by approximately 2% from June 30, 2026.

Redwood Trust, Inc. (NYSE: RWT) plans to raise $150,000,000 through convertible senior notes due 2030, with initial purchasers able to buy up to an additional $22,500,000. The senior unsecured notes are intended to support 2027 Notes repurchases, common-stock repurchases and general corporate purposes, including operating businesses and investments.

Dividends, Loan Sales and Note Terms

Preliminary agreements cover the proposed disposal of legacy bridge loans with aggregate unpaid principal of up to approximately $190 million. The notes are being offered privately to qualified institutional buyers under Rule 144A. The Interest Rate and offering price will be determined through negotiations with the initial purchasers.

Repurchases Could Shift Conversion Pricing

Redwood Trust intends to use part of the notes proceeds to repurchase 2027 Notes when the offering is priced. Up to $20.0 million may fund privately negotiated common-stock repurchases at the same time, with the remainder directed to general corporate purposes, including operating businesses and investment activities. The proposed stock repurchases may cause Redwood Trust common stock to trade at prices higher than otherwise would have occurred.