RWT Holdings priced its offering of 5.75% exchangeable senior notes due Oct. 1, 2025, with principal of $175.0 million.
The initial purchasers have a 13-day option to purchase up to an additional $26.3 million of the notes in connection with the offering. The notes will be senior unsecured obligations of RWT Holdings and will be fully and unconditionally guaranteed by parent Redwood Trust Inc.
Interest payments will be made April 1 and Oct. 1 of each year, with the first payment to be made April 1, 2020. The notes can be exchanged for Redwood Trust's common shares at an initial rate of 55.1967 common shares per $1,000 principal of the notes.
RWT Holdings will not be allowed to redeem the notes, except when it is necessary to maintain Redwood Trust's status as a real estate investment trust. The offering is expected to close Sept. 24.
