Financing ·
Redwood Trust prices $205M of convertible notes due 2030, agrees to repurchase $124M of existing debt
RWTRedwood Trust Inc
Redwood Trust priced an upsized $185 million offering of 7.00% Convertible Senior Notes due 2030, with a full exercise of the over-allotment option bringing total issuance to $205 million. The notes carry an initial conversion price of approximately $4.90 per share and mature on September 15, 2030. Concurrently, the company agreed to repurchase approximately $123.79 million of its 7.75% convertible senior notes due 2027 and buy back roughly $20 million worth of common stock using net proceeds from the new debt issuance. Redwood Trust is a specialty finance company providing liquidity to housing credit segments through securitization, whole-loan distribution, and mortgage banking platforms.