Redwood Upsizes Convertible Notes to $185M, Sets $4.90 Conversion Price
RWT is trading near its 52-week low of $3.22 (12% above the low) on elevated volume (13× avg).
Summary
Redwood Trust priced its convertible senior notes offering at $185 million, up from the previously announced $150 million, with a 7.00% coupon and a conversion price of approximately $4.90 per share, a 35% premium to the September 10 close. The company will use $129.29 million of proceeds to repurchase its 7.75% notes due 2027 and $20 million to buy back 5.5 million shares, reducing near-term debt and supporting the stock. The upsized deal and concurrent buybacks signal demand for the notes and management's intent to manage dilution. The offering is expected to close September 15, 2026.
At the time of this announcement, RWT was trading at $3.62 on NYSE in the Finance sector, with a market capitalization of approximately $456M. The 52-week trading range was $3.22 to $6.97. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: BusinessWire.