\nRedwood Trust, Inc. (NYSE: RWT; \u201cRedwood\u201d or the \u201cCompany\u201d) today announced the pricing of an underwritten public offering of $90,000,000 aggregate principal amount of its 9.125% senior notes due 2030 (the \u201cNotes\u201d). In connection with the offering, Redwood granted the underwriters a 30-day option to purchase up to an additional $13,500,000 aggregate principal amount of Notes, to cover over-allotments. The offering is expected to close on January 17, 2025, subject to the satisfaction of certain closing conditions.<\/p>\n
\nRedwood intends to apply to list the Notes on the New York Stock Exchange under the symbol \u201cRWTP\u201d and, if the application is approved, trading of the Notes on the New York Stock Exchange is expected to begin within 30 days after the Notes are first issued. The Notes have received an investment grade rating of BBB- from Egan-Jones Ratings Company, an independent, unaffiliated rating agency.<\/p>\n
\nRedwood intends to use the net proceeds from the offering for general corporate purposes, which may include (i) funding of Redwood\u2019s business and investment activity, which may include funding Redwood\u2019s residential and business purpose lending mortgage banking businesses, acquiring mortgage-backed securities for Redwood\u2019s investment portfolio, funding other long-term portfolio investments, and funding strategic acquisitions and investments and\/or (ii) the repayment of existing indebtedness, which may include the repurchase or repayment of a portion of the 5.75% exchangeable senior notes due 2025 issued by one of its subsidiaries or Redwood\u2019s 7.75% convertible senior notes due 2027.<\/p>\n
\nThe Notes will be senior unsecured obligations of Redwood. The Notes will bear interest at a rate equal to 9.125% per year, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year, beginning on June 1, 2025. The Notes will mature on March 1, 2030. The Notes will be issued in minimum denominations of $25 and integral multiples of $25 in excess thereof or in units.<\/p>\n
\nRedwood will have the right to redeem the Notes, in whole or in part, at its option at any time on or after March 1, 2027 at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. Upon the occurrence of a change of control, Redwood will be required to make an offer to repurchase all outstanding Notes at a price equal to 101% of the principal amount of the Notes, plus accrued and unpaid interest to, but excluding, the repurchase date.<\/p>\n
\nMorgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, RBC Capital Markets, LLC, Wells Fargo Securities, LLC, Keefe, Bruyette & Woods, Inc. and Piper Sandler & Co., are acting as joint book-running managers for the proposed offering. Citizens JMP Securities, LLC is acting as co-manager for the proposed offering.<\/p>\n
\nThe public offering will be made pursuant to an automatic shelf registration statement on Form S-3 that was filed by Redwood with the Securities and Exchange Commission (\u201cSEC\u201d) and became effective on March 4, 2022. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the offering have been filed with the SEC and are available on the SEC\u2019s website at www.sec.gov<\/a>. Copies of the preliminary prospectus supplement and accompanying prospectus may be obtained by contacting:<\/p>\n \nMorgan Stanley & Co. LLC \nGoldman Sachs & Co. LLC \nRBC Capital Markets, LLC \nWells Fargo Securities, LLC \nKeefe, Bruyette & Woods, Inc. \nPiper Sandler & Co. \nThis announcement shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.<\/p>\n About Redwood Trust<\/b><\/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, and our publicly traded shares. We operate our business in three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking and Investment Portfolio. Through RWT Horizons\u00ae, our venture investing initiative, we invest in early-stage companies that have a direct nexus to our operating platforms. Additionally, through Aspire, we directly originate home equity investment options to homeowners and purchase expanded home loan products from mortgage originators. 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.<\/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, including the terms thereof, the anticipated closing date, the intention to apply to list the securities on the New York Stock Exchange 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, the application to list the securities on the New York Stock Exchange and the application of the 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 preliminary prospectus supplement dated January<\/i>15, 2025, the accompanying prospectus dated March 4, 2022, and the documents incorporated in the prospectus supplement and the prospectus by reference. 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\/20250115740675\/en\/<\/a><\/span><\/p>\n Investor Relations<\/b><\/p>\n \nKaitlyn Mauritz KEYWORDS:<\/b> California United States North America<\/p>\n INDUSTRY KEYWORDS:<\/b> REIT Finance Professional Services Residential Building & Real Estate Construction & Property<\/p>\n
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Attention: Prospectus Department
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Or by telephone: (866) 718-1649
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