Company: RWT-PA
Filing Date: 2025-08-22
Form Type: 424B5
Source: 0001104659-25-081925
Chunk: 18

Company: REDWOOD TRUST INC
Filing Date: 2025-08-22
Form: 424B5
Chunk 18
---
 notes.

We may not have the ability to raise the funds necessary to repurchase the notes as required upon a fundamental change or to pay the cash amounts due upon conversion, and our other then-existing debt may contain limitations on our ability to pay cash upon such repurchase of the notes.

Following a fundamental change as described under “Description of Notes — Fundamental change permits holders to require us to repurchase notes,” holders of notes will, subject to certain conditions and a limited exception for exempted fundamental changes as described in this prospectus supplement, have the right to require us to purchase their notes for cash. A fundamental change would also require us to offer to repurchase all of the outstanding 2025 Notes for cash and, in the case of the Senior Notes, a transaction or transactions described in clauses (1) or (2) of the definition of fundamental change (a “Senior Notes Repurchase Event”) would also require us to offer to repurchase all of the outstanding Senior Notes, and may also constitute an event of default or prepayment under, and result in the acceleration of the maturity of, our then-existing indebtedness. In addition, all conversions of notes will be settled partially or entirely in cash. We cannot assure you that we will have sufficient financial resources, or will be able to arrange financing, to pay the fundamental change repurchase price in cash with respect to the notes, or with respect to the 2025 Notes, if any, surrendered by holders for repurchase upon a fundamental change, to pay the cash amounts due upon any conversion of the notes or, in the case of the Senior Notes, to pay the repurchase price in cash in connection with a Senior Notes Repurchase Event. In addition, restrictions in our then-existing credit facilities or other indebtedness may not allow us to repurchase the notes and the 2025 Notes upon a fundamental change, pay the cash amount due upon

<div align='center'>S-8</div>

TABLE OF CONTENTS

conversion of the notes or, in the case of the Senior Notes, to repurchase the Senior Notes upon a Senior Notes Repurchase Event. Our failure to repurchase the notes and the 2025 Notes upon a fundamental change when required or to pay the cash amount due upon conversion of the notes would result in an event of default with respect to the notes or the 2025 Notes, as applicable (in the case of cash amounts due upon a fundamental change), or an event of default with respect to the notes (in the case of cash amounts due upon conversion