Company: RWT-PA
Filing Date: 2025-08-22
Form Type: 424B5
Source: 0001104659-25-081925
Chunk: 14

Company: REDWOOD TRUST INC
Filing Date: 2025-08-22
Form: 424B5
Chunk 14
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August 2025 Form 8-K”) (which supersedes and replaces the discussion under the heading “Material U.S. Federal Income Tax Considerations” in the accompanying prospectus), as supplemented by the discussion under the heading “Supplemental U.S. Federal Income Tax Considerations” in this prospectus supplement.

Trustee, Paying Agent and Conversion Agent

Wilmington Trust, National Association.

Use of Proceeds

We estimate that the net proceeds from this offering will be approximately $49.2 million, after deducting estimated offering expenses payable by us.

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TABLE OF CONTENTS

We intend to use the net proceeds from this offering for general corporate purposes, which may include (i) funding of our operating business and investment activity, which may include funding our residential and business purpose lending mortgage banking businesses, acquiring mortgage-backed securities for our investment portfolio, and funding strategic acquisitions and investments and/or (ii) the repayment of existing indebtedness, which may include the repurchase or repayment of a portion of the 2025 Notes issued by one of our subsidiaries. See “Use of Proceeds” on page S-17.

Risk Factors

See “Risk Factors” on page S-7of this prospectus supplement and the risk factors beginning on page 5 of our Annual Report on Form 10-K for the year ended December 31, 2024and any risk factors and other information included or incorporated by reference in this prospectus supplement for a discussion of factors you should consider carefully before deciding to invest in the notes.

Restrictions on Ownership and Transfer of Common Stock

To assist us in satisfying the requirements for qualification as a REIT, our charter prohibits any person from acquiring or holding beneficial ownership of shares of our common stock representing in excess of 9.8%, in number of shares or value, of the outstanding shares of our common stock (the “Charter Limitation”), unless our board of directors waives or modifies this ownership limit. We have previously granted limited waivers of this prohibition and, subject to the approval of our board of directors, we may grant additional waivers at any time. The indenture provides that, notwithstanding any other provision of the indenture, no holder of notes will be entitled to receive shares of our common stock upon conversion to the extent (but only to the extent) that such receipt would cause such converting holder to violate the Charter Limitation. Any purported delivery of shares of common stock upon conversion of notes shall be void and have no effect to