Redwood Trust Inc. (NYSE: RWT) announced the pricing of $125 million in 9.75% senior notes due 2031, according to a company statement. The offering includes an over-allotment option allowing underwriters to purchase an additional $18.75 million in notes within 30 days.

The notes are scheduled to close on May 27, 2026, subject to closing conditions. Redwood plans to apply for New York Stock Exchange listing under the symbol "RWTR," with trading expected to begin within 30 days of issuance if approved.

The company intends to use proceeds for general corporate purposes, including funding its Sequoia, Aspire, and CoreVest mortgage banking platforms, acquiring assets for its Redwood Investments portfolio, and pursuing strategic acquisitions and investments.

The senior unsecured notes will pay interest quarterly on March 1, June 1, September 1, and December 1 of each year, beginning September 1, 2026. The notes mature on June 1, 2031, and will be issued in minimum denominations of $25.

Redwood may redeem the notes in whole or part starting June 1, 2028, at 100% of principal amount plus accrued interest. In a change of control scenario, the company must offer to repurchase all outstanding notes at 101% of principal amount plus accrued interest.

Morgan Stanley & Co. LLC, RBC Capital Markets LLC, UBS Investment Bank, Wells Fargo Securities LLC, Goldman Sachs & Co. LLC, and Piper Sandler & Co. serve as joint book-running managers. Mischler Financial Group Inc. and Seaport Global Securities LLC act as co-managers.

The offering is being conducted under an automatic shelf registration statement filed with the Securities and Exchange Commission that became effective March 3, 2025.