Redwood Trust Closes $205M Convertible Notes Offering, Repurchases $123.79M of 2027 Notes
RWT sits 21% above its 52-week low of $3.22 on elevated volume (2.7× avg).
Summary
Redwood Trust closed a $205 million convertible notes offering and used $129.29 million of proceeds to repurchase $123.79 million of its 2027 convertible notes, plus $20 million to buy back 5.5 million common shares.
Key Events · Financing and Capital Events · RWT
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Convertible Notes Offering Closed at $205M
Redwood Trust issued $205 million of 7.00% convertible senior notes due 2030, including the full $20 million initial purchaser option, up from the $185 million priced on September 10, 2026.
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2027 Notes Repurchased
The company used $129.29 million of proceeds to repurchase $123.79 million of its 7.75% convertible senior notes due 2027, leaving approximately $173.38 million outstanding.
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Common Stock Buyback
Redwood used $20 million to repurchase 5,509,641 shares of common stock concurrently with the offering.
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Conversion Terms
Initial conversion rate is 204.0608 shares per $1,000 principal amount, equivalent to $4.90 per share, a 35% premium to the September 10, 2026 closing price. Maximum potential issuance is 56,473,810 shares.
Analysis · RWT · Real Estate & Construction
Redwood Trust completed its upsized convertible senior notes offering at $205 million, up from the $185 million priced on September 10, 2026, after the initial purchasers fully exercised their $20 million option. The company is using $129.29 million of the proceeds to repurchase $123.79 million of its 7.75% convertible notes due 2027, extending its debt maturity profile, and another $20 million to buy back 5.5 million shares of common stock. The notes carry a 7.00% coupon and convert at $4.90 per share, a 35% premium to the September 10 closing price. This refinancing reduces near-term debt overhang while adding potential future equity dilution of up to 56.5 million shares if fully converted.
How filings like this one have moved
In the 30 days to Sep 17, 2026, 35.7% of the 1179 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.44%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, RWT was trading at $3.91 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $491.1M. The 52-week trading range was $3.22 to $6.97. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.