REDWOOD TRUST INC 8-K

What Happened Redwood Trust, Inc. announced on May 19, 2026 that it entered into an underwriting agreement to sell $125,000,000 aggregate principal amount of 9.75% senior notes due 2031. The underwriting group is led by Morgan Stanley, RBC Capital Markets, UBS, Wells Fargo, Goldman Sachs and Piper Sandler. The company granted the underwriters a 30-day option to buy up to an additional $18,750,000 of notes to cover over-allotments; the offering is expected to close on May 27, 2026. The notes are registered under the company’s Form S-3 registration statement (No. 333-285506) and a prospectus supplement dated May 19, 2026.

Key Details

• Size: $125,000,000 principal amount; 30-day overallotment option of up to $18,750,000 (15% of the offering).
• Coupon and maturity: 9.75% annual interest, due 2031.
• Timeline: Underwriting agreement dated May 19, 2026; expected closing May 27, 2026.
• Underwriters: Morgan Stanley & Co. LLC; RBC Capital Markets, LLC; UBS Securities LLC; Wells Fargo Securities, LLC; Goldman Sachs & Co. LLC; Piper Sandler & Co.

Why It Matters This offering will increase Redwood Trust’s reported debt by at least $125 million (potentially up to $143.75 million if the option is exercised) and will create additional annual cash interest obligations — roughly $12.2 million per year on $125 million at a 9.75% coupon. For investors, that affects the company’s leverage and interest expense profile; the filing is informational and does not by itself change operating results, but it is material for assessing capital structure and future cash flows.