Redwood Trust Inc. priced a public offering of 12.5 million common shares at $16.08 apiece, resulting in gross proceeds of $201 million.
In connection with the offering, the company granted the underwriters a 30-day option to buy up to an additional 1,875,000 common shares.
Redwood Trust previously announced that it intended to offer 11 million common shares and that it expected to grant the underwriters a 30-day option to purchase up to an additional 1.65 million common shares in the offering.
The company plans to use the net proceeds to fund its business and investment activity, which may include funding pending or recently completed investment transactions. It may also use a portion of the net proceeds to fund new investment opportunities in portfolios of residential, multifamily, or business purpose residential loans or securities, to make other portfolio investments, to fund its mortgage banking business, and to repay its $201 million principal amount of exchangeable senior notes maturing in November, and for general corporate purposes.
J.P. Morgan, Wells Fargo Securities LLC, Goldman Sachs & Co. LLC and Credit Suisse Securities (USA) LLC are acting as joint book-running managers for the offering, which is expected to close Sept. 6. JMP Securities LLC and Keefe Bruyette & Woods Inc. are acting as co-managers.
