Redwood Trust Shares Decline on $150 Million Debt Offering
By Kelly Cloonan
Shares of Redwood Trust slid after the company disclosed plans to offer $150 million in convertible senior notes due 2030 in a private offering to qualified institutional buyers.
The stock slid 18% to $3.50 in premarket trading on Thursday. As of the prior market close shares were down 23% year to date.
The real estate investment trust expects to grant the initial purchasers an option to purchase up to an additional $22.5 million in notes. The interest rate and offering price will be determined by negotiations between Redwood and the initial purchasers, the company said.
Redwood said it plans to use some of the proceeds from the offering to repurchase a portion of its 2027 notes. The company also intends to use up to $20 million of the proceeds to repurchase shares of its common stock, and would use the remainder for general corporate purposes.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
September 10, 2026 09:25 ET (13:25 GMT)
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