MILL VALLEY, Calif.,
June 19, 2018 /PRNewswire/
-- Redwood Trust, Inc. ("Redwood") (NYSE: RWT) today announced
that it plans to offer, subject to market and other conditions,
$200.0 million aggregate principal
amount of convertible senior notes due 2024 in an underwritten
public offering (the "Notes"). Redwood expects to grant the
underwriters a 30-day option to purchase up to an additional
$30.0 million aggregate principal
amount of the Notes in connection with the offering solely to cover
over-allotments, if any. The Notes will be senior unsecured
obligations of Redwood. The interest rate and offering price are to
be determined by negotiations between Redwood and the underwriters
of the offering.
Redwood intends to use the net proceeds from this offering to
fund our business and investment activity, which may include
funding purchases of residential mortgage loans and acquiring
mortgage-backed securities for our investment portfolio, funding
new investment initiatives in the single-family rental and
multifamily housing sectors, as well as for general corporate
purposes. Pending such uses, Redwood may use all or a portion of
the net proceeds from this offering to temporarily reduce
borrowings under its short-term residential loan warehouse
facilities and its short-term real estate securities repurchase
facilities.
Credit Suisse Securities (USA)
LLC, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are
acting as joint book-running managers for the proposed offering. A
copy of the prospectus supplement and prospectus relating to these
securities may be obtained, when available, by contacting: Credit
Suisse Securities (USA) LLC c/o
Credit Suisse Prospectus Department, One Madison Avenue,
New York, New York 10010 or by
calling 1-800-221-1037 or by emailing
newyork.prospectus@credit-suisse.com; J.P. Morgan Securities LLC
c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
Edgewood, New York 11717 or by
calling 1-866-803-9204; or Wells Fargo Securities, LLC c/o Equity
Syndicate Department, 375 Park Avenue, 4th Floor, New York, New York 10152 or by calling
1-800-326-5897 or by emailing cmclientsupport@wellsfargo.com.
This announcement shall not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of
these securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction. This announcement is being issued pursuant to and in
accordance with Rule 134 under the Securities Act of 1933, as
amended. Any offer, if at all, will be made only by means of
a prospectus supplement and the accompanying prospectus, forming a
part of the effective registration statement.
Redwood is a publicly traded company structured as a real estate
investment trust.
CAUTIONARY STATEMENT: This press release contains
forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995,
such as statements related to the offering and the expected use of
the net proceeds. Forward-looking statements involve numerous risks
and uncertainties. Redwood's actual results may differ materially
from those projected, and Redwood cautions investors not to place
undue reliance on the forward-looking statements contained in this
release. Forward-looking statements are not historical in
nature and can be identified by words such as "anticipate,"
"estimate," "will," "should," "expect," "believe," "intend,"
"seek," "plan," and similar expressions or their negative forms, or
by references to strategy, plans, or intentions. These
forward-looking statements are subject to risks and uncertainties,
including, among other things, those described in Redwood's
preliminary prospectus supplement dated June
19, 2018, the accompanying prospectus dated May 10, 2016, and the documents incorporated in
the prospectus supplement and the prospectus by reference.
Redwood undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
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SOURCE Redwood Trust, Inc.