Company: RWT-PA
Filing Date: 2025-08-22
Form Type: 424B5
Source: 0001104659-25-081925
Chunk: 11

Company: REDWOOD TRUST INC
Filing Date: 2025-08-22
Form: 424B5
Chunk 11
---
 such trading day and the conversion rate in effect immediately after the close of business on such trading day;

•

upon the occurrence of certain corporate events or distributions on our common stock, as described in this prospectus supplement;

•

if we call such notes for redemption; and

•

at any time from, and including, March 15, 2027 until the close of business on the second scheduled trading day immediately before the maturity date.

Any conversions of notes into shares of our common stock will be subject to certain ownership limitations more fully described in “Description of Notes — Ownership limit; limitation on stock issuable upon conversion.” As of the date of this prospectus supplement, the conversion rate for the notes is 95.6823 shares of our common stock per $1,000 principal amount of notes, equivalent to a conversion price of approximately $10.45 per share of our common stock. The conversion rate will be subject to adjustment in some events, but will not be adjusted for accrued interest. In addition, if certain corporate events occur prior to the maturity date, we will in some cases increase the conversion rate for a holder who elects to

<div align='center'>S-3</div>

TABLE OF CONTENTS

convert its notes in connection with such corporate event as described under “Description of Notes — Conversion rights — Adjustment to shares delivered upon conversion upon make-whole fundamental change.” However, if the price paid (or deemed paid) for our common stock in such a corporate event is greater than $14.00 per share or less than $9.29 per share (in each case, subject to adjustment in accordance with the indenture), then we will not be required to increase the conversion rate if a holder converts its notes in connection with such a corporate event.

Settlement Upon Conversion

We will settle conversions by paying or delivering, as applicable, cash or a combination of cash and shares of our common stock, at our election, based on the applicable conversion rate(s). The consideration due upon conversion will be determined over an observation period consisting of 25 “VWAP trading days” (as defined in this prospectus supplement). Subject to certain exceptions described in this prospectus supplement, we will pay or deliver, as applicable, the consideration due upon conversion on or before the second trading day immediately after the last VWAP trading day of the observation period for such conversion. See “Description of Notes — Conversion rights — Settlement upon conversion.”

You will not receive any additional cash payment or additional shares of our common stock representing accrued and unpaid