Redwood Trust Announces $50 Million Senior Notes Offering

Redwood Trust, a specialty finance company, plans to offer $50 million in senior notes. The company focuses on several areas of housing credit, including residential consumer and investor mortgage banking, and investment portfolio management. It also invests in early-stage companies through its RWT Horizons venture investing initiative.

Redwood Trust, Inc. (NYSE: RWT) has announced plans to offer $50 million in convertible senior notes, according to a recent press release [1]. The notes, which mature in 2027, will carry an interest rate of 7.75% and will be part of the same series as previously issued notes in June 2022 and October 2024. The company intends to use the net proceeds from this offering for general corporate purposes, including funding its residential and business purpose lending mortgage banking businesses, acquiring mortgage-backed securities for its investment portfolio, and funding strategic acquisitions and investments. Additionally, the funds may be used to repay existing debt, such as a portion of its 5.75% exchangeable senior notes due in 2025 [2].

Redwood Trust operates through three core residential housing-focused operating platforms—Sequoia, Aspire, and CoreVest—and a complementary Redwood Investments portfolio. The company also invests in early-stage companies through its RWT Horizons venture investing initiative. Redwood Trust is internally managed and structured as a real estate investment trust (REIT) for tax purposes. The company's goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and technological innovation [1].

The stock market reacted to the news with a 0.33% decline in premarket trading on Friday, following the announcement [2]. This offering is subject to market and other conditions, and no securities will be sold until the offering is registered or qualified under the securities laws of the relevant jurisdictions.

References:
[1] https://www.businesswire.com/news/home/20250821881071/en/Redwood-Trust-Launches-Reopening-of-%2450-Million-of-7.75-Convertible-Senior-Notes-Due-2027
[2] https://seekingalpha.com/news/4488206-redwood-trust-to-offer-50m-in-convertible-senior-notes