Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 134

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 134
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 offerings. During the nine months ended September 30, 2025, we did not issue any shares of common stock under this program. At September 30, 2025, the remaining share issuance capacity under this program was approximately $50 million.Issuance of Preferred StockWe issued 2.8 million shares of 10.00% Series A Fixed-Rate Reset Cumulative Redeemable Preferred Stock ("Series A Preferred Stock") for gross proceeds of $70 million and net proceeds of approximately $67 million, after deducting the underwriting discount and other estimated expenses. The Series A Preferred Stock pays quarterly cumulative cash dividends through January 15, 2028 at a fixed annual rate of 10%, based on the stated liquidation preference of $25.00 per share, in arrears, when authorized by Redwood's Board of Directors and declared by the Company. Starting April 15, 2028, the annual dividend rate will reset to the five-year U.S. Treasury Rate plus a spread of 6.278%. The Series A Preferred Stock ranks senior to Redwood's common stock with respect to rights to the payment of dividends and the distribution of assets upon any liquidation, dissolution or winding up of the Company. During the three and nine months ended September 30, 2025, the Company declared preferred stock dividends of $0.625 and $1.875 per preferred share, respectively. At September 30, 2025, preferred dividends payable totaling $1 million for the third quarter 2025 dividend were included in Accrued expenses and other liabilities and were payable on October 15, 2025 to preferred stockholders of record on October 1, 2025.

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REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2025(Unaudited) Note 20. Equity - (continued)

Direct Stock Purchase and Dividend Reinvestment PlanDuring the three months ended September 30, 2025, we did not issue any shares of common stock through our Direct Stock Purchase and Dividend Reinvestment Plan. At September 30, 2025, approximately six million shares remained outstanding for future offerings under this plan.Common Stock WarrantsIn conjunction with establishing the joint venture with an institutional investment manager in March 2024, we issued warrants exercisable for 1,974,905 shares of our common stock (the “First Tranche Warrants”);