Redwood Trust Declares Q3 Dividends, Plans $190M Legacy Loan Disposition, and Details $150M Convertible Notes Offering
RWT is trading near its 52-week low of $4.19 (6.7% below the low).
Summary
Redwood Trust declared Q3 dividends, announced a $190M legacy loan disposition expected to reduce book value per share by ~2%, and detailed its $150M convertible notes offering including a $20M concurrent share repurchase.
Key Events · Financing and Capital Events · RWT
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Q3 Dividends Declared
Board declared a $0.18 per share common dividend (109th consecutive quarter) payable September 30, 2026, and a $0.625 per share Series A preferred dividend payable October 15, 2026.
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$190M Legacy Loan Disposition
Preliminary agreements reached to dispose of legacy bridge loans with up to $190 million unpaid principal balance, targeting close late Q3 or early Q4 2026, with an estimated ~2% decrease in book value per share from June 30, 2026 levels.
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$150M Convertible Notes Offering
Private offering of $150 million convertible senior notes due 2030 to qualified institutional buyers, with a $22.5 million greenshoe option; interest rate and offering price to be determined by negotiation.
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Concurrent Debt and Share Repurchases
Up to $20 million of net proceeds will repurchase common stock, and a portion will repurchase 2027 Notes concurrently with pricing; these activities may affect the trading price and initial conversion price of the new notes.
Analysis · RWT · Real Estate & Construction
Redwood Trust is executing a multi-part capital strategy: a $150 million convertible notes offering (with a $22.5 million greenshoe) to refinance 2027 debt and fund operations, a $190 million legacy bridge loan disposition that will reduce book value per share by about 2%, and a $20 million concurrent share repurchase. The dividend declaration of $0.18 per share maintains the 109-quarter streak, but the legacy loan sale at a loss to book value signals continued wind-down pressure on the Legacy Investments portfolio. The convertible notes add potential future dilution, while the share repurchase partially offsets it. Trading near 52-week lows, the company is using the offering to manage its debt stack and fund mortgage banking growth.
How filings like this one have moved
In the 30 days to Sep 10, 2026, 30.2% of the 2009 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.11%. 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 $535.1M. The 52-week trading range was $4.19 to $6.97. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.