Redwood Trust Sets Pricing for $100 Million Senior Notes Issuance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 17 2025
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Source: Newsfilter
Public Offering Announcement: Redwood Trust, Inc. has priced a public offering of $100 million in 9.50% senior notes due 2030, with an option for underwriters to purchase an additional $15 million. The offering is expected to close on November 19, 2025.
Use of Proceeds: The net proceeds from the offering will be used for general corporate purposes, including funding operating businesses, investment activities, and strategic acquisitions.
Notes Details: The senior unsecured notes will bear interest at 9.50% per year, payable quarterly, and will mature on December 1, 2030. Redwood has the option to redeem the notes starting December 1, 2027.
Company Overview: Redwood Trust is a specialty finance company focused on providing liquidity in the U.S. housing market, operating through platforms like Sequoia, Aspire, and CoreVest, and is structured as a real estate investment trust (REIT).
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Analyst Views on RWT
Wall Street analysts forecast RWT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RWT is 7.50 USD with a low forecast of 6.00 USD and a high forecast of 9.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
5 Buy
3 Hold
0 Sell
Moderate Buy
Current: 5.860
Low
6.00
Averages
7.50
High
9.50
Current: 5.860
Low
6.00
Averages
7.50
High
9.50
About RWT
Redwood Trust, Inc. is a specialty finance company focused on several distinct areas of housing credit. The Company's segments include Sequoia Mortgage Banking, CoreVest Mortgage Banking, and Redwood Investments. The Sequoia Mortgage Banking segment consists of a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale to whole loan buyers, securitization through its SEMT (Sequoia) private-label securitization program, or transfer into its investment portfolio. The CoreVest Mortgage Banking segment consists of a platform that originates business-purpose lending loans for subsequent securitization, sale, or transfer into its investment portfolio. The Redwood Investments segment consists of organic investments sourced through the Company's mortgage banking operations. Additionally, through RWT Horizons, its venture investing initiative, the Company invests in early-stage companies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Redwood Trust Announces Tax Information for 2025 Dividends
- Dividend Distribution Overview: Redwood Trust expects that 39% of its 2025 common stock dividend distributions will be classified as ordinary income, 2% as qualified dividends, and 59% as return of capital, which will impact shareholders' tax filings and cash flow.
- Preferred Stock Distribution Details: The preferred stock dividends for 2025 are anticipated to be 96% ordinary income and 4% qualified dividends, necessitating shareholders to plan their taxes accordingly to mitigate potential tax burdens.
- REIT Tax Implications: As Redwood operates as a Real Estate Investment Trust (REIT), the portion of qualified dividend income available to shareholders is limited, which may affect their overall tax liabilities and investment returns.
- Investor Consultation Recommendation: The company advises shareholders to consult tax advisors to ensure their tax filings align with Redwood's dividend distribution information, thereby avoiding potential tax issues from misreporting.
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Redwood Trust Announces 2025 Dividend Tax Information
- Dividend Distribution Overview: Redwood Trust expects that 39% of its 2025 common stock dividend distributions will be classified as ordinary income, 2% as qualified dividends, and 59% as return of capital, impacting shareholders' tax filings and cash flow.
- Preferred Stock Dividend Details: The preferred stock dividends for 2025 are anticipated to be 96% ordinary income and 4% qualified dividends, which shareholders must report on their 2025 federal tax returns, affecting their tax liabilities.
- Tax Deduction Opportunities: Individual taxpayers may benefit from a 20% deduction on ordinary income REIT dividends under Section 199A, provided they meet specific holding period requirements, potentially offering tax advantages to shareholders.
- REIT Structure Implications: Due to Redwood's classification as a REIT, the portion of dividends classified as qualified dividends is limited, and corporate shareholders generally do not qualify for the dividend-received deduction, which may influence their investment strategies.
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