Company: RWT-PA
Filing Date: 2025-01-15
Form Type: 424B5
Source: 0001104659-25-003632
Chunk: 18

Company: REDWOOD TRUST INC
Filing Date: 2025-01-15
Form: 424B5
Chunk 18
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 of underwriting discounts and estimated offering expenses payable by us.

We intend to use the net
proceeds from this offering for general corporate purposes, which may include (i) funding of our 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, funding other long-term portfolio investments, 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 or our 2027 Notes.

As of September 30,
2024, we had approximately $157 million aggregate principal amount of the 2025 Notes outstanding by one of our subsidiaries and subject
to our guarantee and approximately $207 million aggregate principal amount of the 2027 Notes outstanding. The 2025 Notes bear interest
at an annual rate of 5.75% and mature on October 1, 2025 and the 2027 Notes bear interest at an annual rate of 7.75% and mature
on June 15, 2027.

As described above, we may
use the net proceeds from this offering for the repayment of existing indebtedness, which may include the repurchase or repayment of
a portion of the 2025 Notes or 2027 Notes. To the extent any of the underwriters or their affiliates own any of the 2025 Notes or 2027
Notes, and to the extent that we use any net proceeds to repurchase or repay the 2025 Notes or 2027 Notes, such underwriters or their
affiliates may receive a portion of such payment.

<div align='center'>S-11

DESCRIPTION OF THE NOTES</div>

We will issue the notes under
an indenture, which we refer to as the base indenture, dated as of March 6, 2013, between us and Wilmington Trust, National Association,
as trustee, which we refer to as the trustee, as supplemented by a supplemental indenture establishing the terms of the notes, which
we refer to as the supplemental indenture. We refer to the base indenture and the supplemental indenture, collectively, as the indenture.
The terms of the notes include those expressly set forth in the indenture and those made part of the indenture by reference to the Trust
Indenture Act.

The following description
is a summary of the material provisions of the notes and the indenture