Redwood Trust Inc. unit RWT Holdings plans to offer $175.0 million aggregate principal amount of its exchangeable senior notes due 2025 in a private offering to qualified institutional buyers.
Initial purchasers will have a 13-day option to purchase up to an additional $26.3 million of the notes. The notes can be exchanged for parent Redwood Trust Inc.'s common shares.
RWT Holdings plans to use net proceeds for general corporate purposes, which may include repayment of debt, including all or a portion of the $201 million outstanding aggregate principal amount of its 5.625% exchangeable senior notes due 2019. Net proceeds may also be used to fund business and investment activities.
