Company: RWT-PA
Filing Date: 2025-08-22
Form Type: 424B5
Source: 0001104659-25-081925
Chunk: 12

Company: REDWOOD TRUST INC
Filing Date: 2025-08-22
Form: 424B5
Chunk 12
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 interest upon conversion of a note, except in limited circumstances. Instead, interest will be deemed paid by the shares of our common stock and cash, if any, delivered to you upon conversion.

Redemption of Notes to Preserve REIT Status

We will have the right to redeem the notes, in whole or in part, at our option at any time, and from time to time, prior to their maturity to the extent, and only to the extent, necessary to preserve our status as a REIT, for U.S. federal income tax purposes, at a cash redemption price equal to 100% of the aggregate principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.

Redemption of Notes Based on Stock Price Condition

Subject to the partial redemption limitation described below, we will have the right to redeem the notes, in whole or in part, at our option at any time, and from time to time, on or after June 16, 2025 and on or before the 25th scheduled trading day immediately before the maturity date, at a cash redemption price equal to 100% of the aggregate principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date, but only if the last reported sale price per share of our common stock exceeds 130% of the conversion price on (1) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date we send the related redemption notice; and (2) the trading day immediately before the date we send such notice. We refer to a redemption of any notes pursuant to the provisions described in the preceding sentence as a “provisional redemption.” Pursuant to the partial redemption limitation, we may not elect to redeem less than all of the outstanding notes pursuant to a provisional redemption unless at least $100.0 million aggregate principal amount of notes are outstanding and not subject to provisional redemption as of the time we send the related redemption notice. In addition, calling any note for provisional redemption will constitute a make-whole fundamental change with respect to that note, in which case

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TABLE OF CONTENTS

the conversion rate applicable to the conversion of that note will be increased in certain circumstances if it is converted after it is called for provisional redemption.

Sinking Fund

None.

Fundamental Change

If we undergo a