\nInterest on the Notes will be payable semi-annually in arrears on March 15 and September 15 of each year, beginning on March 15, 2027; the Notes will mature on September 15, 2030, unless earlier repurchased, redeemed or converted. Upon conversion, holders of the Notes will receive shares of Redwood\u2019s common stock, together with cash in lieu of any fractional share. If Redwood undergoes a \u201cfundamental change\u201d (as defined in the offering memorandum relating to the Notes), subject to certain conditions, holders of the Notes may require Redwood to repurchase all or part of their Notes for cash in an amount equal to the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, if any.<\/p>\n
\nBefore June 17, 2030, holders will have the right to convert their notes only upon the occurrence of certain events. From and after June 17, 2030, holders may convert their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Redwood will have the right to elect to settle conversions either entirely in cash or in a combination of cash and shares of its common stock. However, upon conversion of any notes, the conversion value, which will be determined over a period of multiple trading days, will be paid in cash up to at least the principal amount of the notes being converted. Any conversions of Notes into shares of Redwood common stock will be subject to certain ownership limitations set forth in Redwood\u2019s charter documents. The initial conversion rate is 204.0608 shares of common stock per $1,000 principal amount of Notes, equivalent to a conversion price of approximately $4.90 per share, which represents a premium of approximately 35.0% over the closing price of Redwood\u2019s common stock on September 10, 2026.<\/p>\n
\nRedwood will have the right to redeem the Notes, in whole or in part, at its option at any time prior to maturity to the extent necessary to preserve its status as a real estate investment trust for U.S. federal income tax purposes. The redemption price for any Note called for redemption will be a cash amount equal to the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any.<\/p>\n
\nRedwood intends to use approximately $129.29 million of the net proceeds from the offering to repurchase approximately $123.79 million aggregate principal amount of its 7.75% convertible senior notes due 2027 (the \u201c2027 Notes\u201d) concurrently with the offering in privately negotiated transactions effected through one of the initial purchasers of the Notes or its affiliate, as Redwood\u2019s agent. Redwood intends to use approximately $20.00 million of the net proceeds from the offering to repurchase 5,509,641 shares of its common stock concurrently with the offering in privately negotiated transactions effected through one of the initial purchasers of the Notes or its affiliate, as Redwood\u2019s agent. Redwood intends to use the remainder of the net proceeds from the offering for general corporate purposes, including funding its operating businesses and investment activities, such as its Sequoia, Aspire, and CoreVest mortgage banking platforms, acquiring related assets for its Redwood Investments portfolio, and pursuing strategic acquisitions and investments. Holders of the 2027 Notes that are repurchased in the concurrent repurchases described above may purchase shares of Redwood\u2019s common stock in the open market to unwind any hedge positions they may have with respect to the 2027 Notes. Redwood may also conduct further repurchases of its common stock following the pricing of this offering pursuant to, and in accordance with, its previously disclosed stock repurchase authorization. These activities may affect the trading price of Redwood\u2019s common stock, and repurchases executed concurrently with the pricing of the offering may have affected the initial terms of the Notes, including the initial conversion price. In addition, any repurchases of shares of Redwood\u2019s common stock following the pricing of this offering could affect the trading price of the Notes and, if conducted during an observation period for the conversion of any Notes, could affect the amount and value of the consideration that is due upon such conversion.<\/p>\n
\nThe offer and sale of the Notes and any shares of common stock issuable upon conversion of the Notes have not been, and will not be, registered under the Securities Act or any other securities laws, and the Notes and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the Notes or any shares of common stock issuable upon conversion of the Notes, nor will there be any sale of the Notes or any such shares, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful.<\/p>\n
About Redwood Trust<\/strong><\/p>\n \nRedwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of housing credit where we provide liquidity to growing segments of the U.S. housing market not well served by government programs. We deliver customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms, whole-loan distribution activities, joint ventures and our publicly traded shares. We operate through three core residential housing-focused operating platforms Sequoia, Aspire, and CoreVest \u2014 alongside our complementary Redwood Investments portfolio which is primarily composed of assets we source through these platforms. Redwood Investments also includes RWT Horizons\u00ae, our unified technology platform spanning internal AI innovation and strategic investments across the ecosystem, which supports our efforts to develop an AI-first operating model that enables compounding operational leverage and scalable growth. This reflects how we manage and organize our business and may differ from the manner in which our reportable segments are presented for financial reporting purposes. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk minded scale. Redwood Trust is internally managed and structured as a real estate investment trust (“REIT”) for tax purposes. For more information about Redwood, please visit our website at www.redwoodtrust.com<\/a> or connect with us on LinkedIn<\/a>.<\/p>\n CAUTIONARY STATEMENT: This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, such as statements related to the offering and the expected use of the net proceeds. Forward-looking statements involve numerous risks and uncertainties. Redwood\u2019s actual results may differ materially from those projected, and Redwood cautions investors not to place undue reliance on the forward-looking statements contained in this release. Forward-looking statements are not historical in nature and can be identified by words such as \u201canticipate,\u201d \u201cestimate,\u201d \u201cwill,\u201d \u201cshould,\u201d \u201cexpect,\u201d \u201cbelieve,\u201d \u201cintend,\u201d \u201cseek,\u201d \u201cplan,\u201d and similar expressions or their negative forms, or by references to strategy, plans, or intentions. No assurance can be given that the offering will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated. Completion of the offering on the terms described, and the application of net proceeds, are subject to numerous conditions, risks and uncertainties, many of which are beyond the control of Redwood, including, among other things, those described in Redwood\u2019s filings with the Securities and Exchange Commission. Redwood undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.<\/i><\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20260910580066\/en\/<\/a><\/span><\/p>\n \nInvestor Relations KEYWORDS:<\/b> California United States North America<\/p>\n INDUSTRY KEYWORDS:<\/b> REIT Finance Professional Services Residential Building & Real Estate Construction & Property<\/p>\n<\/p>\n
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Phone: 866-269-4976
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Email: investorrelations@redwoodtrust.com<\/a><\/p>\n
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