Redwood Trust announced the pricing of an underwritten public offering of $125 million aggregate principal amount of 9.75% senior notes due 2031. The company also granted the underwriters a 30-day option to purchase up to an additional $18.75 million aggregate principal amount of notes to cover over-allotments. The offering is expected to close on May 27, 2026, subject to customary closing conditions.
Redwood Trust said it intends to apply to list the notes on the New York Stock Exchange under the symbol “RWTR.” If approved, trading is expected to begin within 30 days after the notes are first issued.
The company plans to use the net proceeds from the offering for general corporate purposes, including funding its operating businesses and investment activities. These uses include supporting its Sequoia, Aspire, and CoreVest mortgage banking platforms, acquiring related assets for its Redwood Investments portfolio, and pursuing strategic acquisitions and investments.
The notes will be senior unsecured obligations of Redwood Trust and will bear interest at a rate of 9.75% annually, payable quarterly in arrears beginning September 1, 2026. The notes will mature on June 1, 2031 and will be issued in minimum denominations of $25 and integral multiples of $25 in excess thereof.
Redwood Trust will have the right to redeem the notes, in whole or in part, on or after June 1, 2028 at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest. In the event of a change of control, the company will be required to offer to repurchase the outstanding notes at 101% of principal value, plus accrued and unpaid interest.
Support: The joint book-running managers for the offering are Morgan Stanley, RBC Capital Markets, UBS Investment Bank, Wells Fargo Securities, Goldman Sachs, and Piper Sandler. Co-managers for the proposed offering are Mischler Financial Group and Seaport Global Securities.
