Redwood Trust announces offering of 11M shares of common stock
Redwood Trust announced that it intends to offer 11M shares of its common stock in an underwritten public offering. Redwood intends to use the net proceeds from this offering to fund its business and investment activity, which may include funding pending or recently completed investment transactions. In addition, Redwood may use a portion of the net proceeds from this offering 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 $201M principal amount of exchangeable senior notes maturing in November, and for general corporate purposes. Pending such uses, Redwood may use all or a portion of the net proceeds from this offering to temporarily reduce borrowings under its short-term residential or business purpose loan warehouse facilities and its short-term real estate securities repurchase facilities and Redwood may subsequently re-borrow amounts under such facilities to fund the activity described above. J.P. Morgan, Wells Fargo Securities, Goldman Sachs, and Credit Suisse Securities are acting as joint book-running managers for the proposed offering. JMP Securities and Keefe, Bruyette & Woods are acting as co-managers for the proposed offering.