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  Title	Redwood Trust Prices $90.0 Million Senior Notes Offering
  ID	5937529
  External ID	221500979
  Author
  Published Date	Jan. 15, 2025, 4:15 p.m.
  Summary	Redwood Trust Prices $90.0 Million Senior Notes Offering Business Wire Wed, Jan 15, 2025, 5:15 PM 5 min read In This Article: RWT -0.08% RWT-PA -0.54% MILL VALLEY, Calif., January 15, 2025 --( BUSINES
  Tags	press-release
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  Sentiment	Negative: 0.01355    Neutral: 0.93435    Positive: 0.05210
  Relevance	0.03167

• Content Details

  Content ID	3620331
  Key	38cf4b04-e340-4d50-bca4-2e112f0f0cd0
  Content	Redwood Trust Prices $90.0 Million Senior Notes Offering Business Wire Wed, Jan 15, 2025, 5:15 PM 5 min read In This Article: RWT -0.08% RWT-PA -0.54% MILL VALLEY, Calif., January 15, 2025 --( BUSINESS WIRE )--Redwood Trust, Inc. (NYSE: RWT; "Redwood" or the "Company") 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 "Notes"). 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. Redwood intends to apply to list the Notes on the New York Stock Exchange under the symbol "RWTP" 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. Redwood intends to use the net proceeds from the offering for general corporate purposes, which may include (i) funding of Redwood’s business and investment activity, which may include funding Redwood’s residential and business purpose lending mortgage banking businesses, acquiring mortgage-backed securities for Redwood’s 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’s 7.75% convertible senior notes due 2027. The 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. Redwood 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. Story Continues Morgan 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. The 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 ("SEC") 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’s website at www.sec.gov . Copies of the preliminary prospectus supplement and accompanying prospectus may be obtained by contacting: Morgan Stanley & Co. LLC 180 Varick Street New York, NY 10014 Attention: Prospectus Department Or by telephone: (866) 718-1649 Or by email: prospectus@morganstanley.com Goldman Sachs & Co. LLC Attention: Prospectus Department 200 West Street New York, NY 10282 Or by telephone: 866-471-2526 Or by email: prospectus-ny@ny.email.gs.com RBC Capital Markets, LLC Attention: Transaction Management Brookfield Place 200 Vesey Street, 8th Floor New York, NY 10281-8098 Or by telephone: 866-375-6829 Or by email: rbcnyfixedincomeprospectus@rbccm.com Wells Fargo Securities, LLC 608 2nd Avenue South, Suite 1000 Minneapolis, MN 55402 Attention: WFS Customer Service Or by telephone: (800) 645-3751 Or by email: wfscustomerservice@wellsfargo.com Keefe, Bruyette & Woods, Inc. Attention: Capital Markets 787 Seventh Avenue 4th Floor New York, NY 10019 Or by telephone: 800-966-1559 Piper Sandler & Co. Attention: Debt Capital Markets 1251 Avenue of the Americas, 6th Floor New York, NY 10020 Or by email: fsg-dcm@psc.com This 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. About Redwood Trust Redwood 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®, 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. 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’s 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 "anticipate," "estimate," "will," "should," "expect," "believe," "intend," "seek," "plan," 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’s preliminary prospectus supplement dated January 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20250115740675/en/ Contacts Investor Relations Kaitlyn Mauritz Head of Investor Relations Phone: 866-269-4976 Email: investorrelations@redwoodtrust.com View Comments Terms and Privacy Policy Privacy Dashboard Recommended Stories
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  Data Source Type	news
  Data Source URL	https://finance.yahoo.com/
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