Redwood Trust Inc. intends to offer 11 million common shares in an underwritten public offering.
The company expects to grant the underwriters an option to purchase up to an additional 1.65 million common shares.
Based on Redwood Trust's Sept. 3 closing price of $16.67 per share and including overallotments, S&P Global Market Intelligence calculates an aggregate offering size of $210.9 million.
Redwood intends to use the net proceeds to fund its business and investment activity, which may include funding pending or recently completed investment transactions. A portion may also be used 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; to repay its $201 million principal amount of exchangeable senior notes maturing in November 2019; and for general corporate purposes. Pending such uses, the company may use all or a portion of the net proceeds to temporarily reduce borrowings under its short-term residential or business-purpose loan warehouse facilities and its short-term real estate securities repurchase facilities.
J.P. Morgan, Wells Fargo Securities LLC, Goldman Sachs & Co. LLC and Credit Suisse Securities (USA) LLC are acting as joint book-running managers, with JMP Securities LLC and Keefe Bruyette & Woods Inc. acting as co-managers.
