MILL VALLEY, Calif.,
March 19, 2020 /PRNewswire/
-- Redwood Trust, Inc. (NYSE: RWT), a leading innovator
in housing credit investing, today announced that it has closed its
106th Sequoia securitization, SEMT 2020-3, backed by a
$637 million pool of Redwood Select
jumbo loans. Separately, the company also closed a transaction
to extend the maturity of a $400
million warehouse financing facility scheduled to mature at
the end of March 2020, to a new
maturity date in March 2021.
In a presentation published on the company's website on
Tuesday, March 17, 2020, Redwood
disclosed that it had priced this $637
million residential securitization. The company intends to
use the net proceeds it received at closing to reduce borrowings
under its existing residential warehouse facilities. Redwood
estimates this transaction will increase the financing capacity
under its warehouse facilities to approximately 60% of its maximum
aggregate financing capacity.
In the same presentation, Redwood disclosed that it expected to
renew this warehouse financing facility for jumbo residential
mortgage loans. As of the close of business on March 18, 2020, Redwood had $244 million of capacity available under this
uncommitted warehouse line. The renewal extends the maturity of
this facility to March 26, 2021 on
similar terms. The company plans to continue to use the facility as
a warehouse line for jumbo loans held for sale in its Residential
Lending business segment.
Additional Resources
- Investor Presentation: Redwood Trust Company Update
Regarding Recent Market Conditions – March
17, 2020
About Redwood Trust
Redwood Trust, Inc. (NYSE: RWT) is
a specialty finance company focused on making credit-sensitive
investments in single-family residential and multifamily mortgages
and related assets and engaging in mortgage banking activities. Our
goal is to provide attractive returns to shareholders through a
stable and growing stream of earnings and dividends, as well as
through capital appreciation. Redwood Trust was established in
1994, is internally managed, and structured as a real estate
investment trust ("REIT") for tax purposes. For more information
about Redwood, please visit our website at
www.redwoodtrust.com.
Forward-Looking Statements: This press release contains
forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995,
including statements related to Redwood's planned use for the
warehouse financing facility. Forward-looking statements involve
numerous risks and uncertainties. Our actual results may differ
from our beliefs, expectations, estimates, and projections and,
consequently, you should not rely on these forward-looking
statements as predictions of future events. 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 our Annual Report on Form 10-K for the year ended December 31, 2019 and subsequent Quarterly
Reports on Form 10-Q under the caption "Risk Factors." Other risks,
uncertainties, and factors that could cause actual results to
differ materially from those projected may be described from time
to time in reports we file with the Securities and Exchange
Commission, including reports on Forms 10-Q and 8-K. We undertake
no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, or
otherwise.
CONTACT
Lisa Hartman –
SVP, Head of Investor Relations
Phone: 866-269-4976
Email: investorrelations@redwoodtrust.com
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SOURCE Redwood Trust, Inc.