Company: RWT-PA
Filing Date: 2025-08-22
Form Type: 424B5
Source: 0001104659-25-081925
Chunk: 104

Company: REDWOOD TRUST INC
Filing Date: 2025-08-22
Form: 424B5
Chunk 104
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 market value of its other trade or business assets and its foreign real property interests, it is possible we may become a USRPHC in the future. Even if we are a USRPHC, the notes will not constitute USRPIs so long as we are a “domestically controlled qualified investment entity.” A “domestically controlled qualified investment entity” includes a REIT in which at all times during a five-year testing period less than 50% in value of its stock is held directly or indirectly by non-United States persons, subject to certain ownership rules. For purposes of determining whether a REIT is a “domestically controlled qualified investment entity,” ownership by non-United States persons generally will be determined by looking through certain pass-through entities and U.S. corporations, including non-public REITs and certain non-public foreign-controlled domestic C corporations, and treating a public qualified investment entity as a non-United States person unless such entity is a “domestically controlled qualified investment entity.” Notwithstanding the foregoing ownership rules, a person who at all applicable times holds less than 5% of a class of a REIT’s stock that is “regularly traded” on an established securities market in the United States is treated as a United States person unless the REIT has actual knowledge that such person is not a United States person or is a foreign-controlled person. Although we believe that we are a “domestically controlled qualified investment entity,” because our common stock is (and, we anticipate, will continue to be) publicly traded, we cannot make any assurance that we will remain a “domestically controlled qualified investment entity.”

Even if we were a USRPHC and do not qualify as a “domestically controlled qualified investment entity,” gain arising from the conversion, sale, exchange or other taxable disposition by a Non-U.S. Holder of notes will not be subject to tax under FIRPTA (1) if our common stock is regularly traded on an established securities market, and (2) (A) if the notes are not regularly traded (within the meaning of applicable Treasury Regulations), the Non-U.S. Holder owned, actually or constructively, notes (and in certain cases other direct or indirect interests in our common stock) the total fair market value of which on the date they were acquired (and at certain other times described in applicable Treasury regulations) was 10% or less of the fair market value of our common stock, or (B) if the notes are regularly traded (within the