Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 20

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 20
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 of payment to any existing and future indebtedness that is contractually 
 subordinated to the notes;                                                                    |

| · | will                                                                                      
 be effectively subordinated to all of our existing and future secured indebtedness to the 
 extent of the value of the collateral securing such indebtedness; and                     |

| · | will                                                                                 
 be structurally subordinated to the claims of our subsidiaries’ creditors, including 
 trade creditors and our subsidiary’s obligations under the 2025 Notes.               |

As of September 30,
2024, on a consolidated basis, we and our subsidiaries had $3.16 billion in outstanding secured indebtedness and $662 million in outstanding
senior unsecured indebtedness, in each case exclusive of trade and other payables. As of September 30, 2024, the aggregate amount
of secured liabilities of our subsidiaries was $3.01 billion and the aggregate amount of unsecured liabilities of our subsidiaries was
$170 million, including the 2025 Notes, in each case excluding trade and other payables and excluding intercompany liabilities.

<div align='center'>S-12</div>

Our subsidiaries are separate
and distinct legal entities and have no obligation, contingent or otherwise, to pay any amounts due on the notes or to make any funds
available to us for payment on the notes, whether by dividends, loans or other payments. In addition, the payment of dividends and the
making of loans and advances to us by our subsidiaries may be subject to statutory, contractual or other restrictions, may depend on
their earnings, cash flows and financial condition and are subject to various business considerations. As a result, we may be unable
to gain access to the cash flow or assets of our subsidiaries.

Additional Notes

The series of debt securities
of which the notes are a part may be reopened and we may, from time to time, issue additional debt securities of the same series ranking
equally and ratably with the notes and with terms identical to the notes, except with respect to issue date, issue price and, if applicable,
the date from which interest will accrue, without notice to, or the consent of, any of the holders of the notes, provided that if any
such additional debt securities are not fungible with the notes for U.S. federal income tax purposes, such additional debt securities
will have separate CUSIP and ISIN numbers from the notes. The additional debt securities will carry the same right to receive accrued
and unpaid interest on the notes, and such