Company: RWT-PA
Filing Date: 2025-08-22
Form Type: 424B5
Source: 0001104659-25-081925
Chunk: 56

Company: REDWOOD TRUST INC
Filing Date: 2025-08-22
Form: 424B5
Chunk 56
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 | ​ | = | ​ | ​ | the average of the last reported sale prices per share of our common stock over the valuation period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | ​ |

The increase in the conversion rate made under the preceding paragraph will be determined as of the close of business on the last trading day of the valuation period but will be given effect immediately after the open of business on the ex-dividend date of the spin-off; provided that in respect of any conversion where any VWAP trading day of the applicable observation period occurs during the valuation period, we will, if necessary, delay the settlement of such conversion until the second trading day immediately after the last trading day of the valuation period. If any dividend or distribution that constitutes a spin-off is declared but not so paid or made, the conversion rate shall be immediately decreased, effective as of the date our board of directors or a committee thereof determines not to pay such dividend or distribution, to the conversion rate that would then be in effect if such dividend or distribution had not been declared or announced.

S-31

TABLE OF CONTENTS

(4)

If we pay any cash dividends or distributions to all or substantially all holders of our common stock (other than a regularly scheduled cash dividend that does not exceed the “dividend threshold amount” (as defined below) per share of our common stock), the conversion rate will be increased based on the following formula:

where,

CR 0 =

the conversion rate in effect immediately prior to the open of business on the ex-dividend date for such dividend or distribution;

CR 1 =

the conversion rate in effect immediately after the open of business on such ex-dividend date;

SP 0 =

the last reported sale price per share of our common stock on the trading day immediately preceding such ex-dividend date;

T =

the dividend threshold amount, which shall initially be $0.23 per fiscal quarter, adjusted as described below to take into account events that cause adjustments to the conversion rate and as further adjusted to account for any change in the frequency of payment of our regular dividend; provided , however , that the dividend threshold amount shall be deemed to be zero if the dividend is not a regularly scheduled dividend; and

C =

the amount in cash per share we distribute to holders of our common stock.

The foregoing increase in the conversion rate made under this clause (4) shall become effective immediately after the open of business on the ex-dividend date for such dividend or distribution. If such dividend or distribution is not so paid or made, the conversion rate shall