Redwood Trust Launches $150M Convertible Notes Offering to Refinance Debt and Buy Back Stock
RWT is trading near its 52-week low of $4.19 (5.0% above the low).
Summary
Redwood Trust closed a private offering of $205 million in convertible senior notes due 2030, including full exercise of the $20 million option, with a 7.00% coupon, 35% conversion premium, and initial conversion price of $4.90. The company repurchased $123.79 million of its 2027 notes, leaving $173.38 million outstanding, and plans to use up to $20 million of proceeds to buy back common stock, with the remainder for general corporate purposes including funding its mortgage banking platforms. This refinancing move follows strong Q2 results with mortgage production exceeding $8 billion and an 18.5% EAD ROE.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Redwood Trust closed the offering at $205 million, including full exercise of the $20 million option, with a 7.00% coupon, 35% conversion premium, and initial conversion price of $4.90. It also repurchased $123.79 million of 2027 notes, leaving $173.38 million outstanding.
At the time of this announcement, RWT was trading at $4.40 on NYSE in the Finance sector, with a market capitalization of approximately $535.1M. The 52-week trading range was $4.19 to $6.97. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: BusinessWire.