Company: RWT-PA
Filing Date: 2025-08-25
Form Type: 8-K
Source: 0001104659-25-082532
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Company: REDWOOD TRUST INC
Filing Date: 2025-08-25
Form: 8-K
Item: Item 2.03
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Item 2.03.      Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant.  

On August 25, 2025, Redwood
Trust, Inc. (the “ Company”) issued $50,000,000 aggregate principal amount of the Company’s 7.75% Convertible Senior
Notes due 2027 (the “ Notes”) pursuant to securities purchase agreements (the “ Securities Purchase Agreements”)
with the respective investors named therein (the “ Offering”). As used herein, the term “ Notes” includes the Existing
Notes (as defined below), unless the context requires otherwise.

The Notes issued in the Offering
were issued as a reopening of, and are part of the same series as, the 7.75% convertible senior notes due 2027 that the Company originally
issued in June 2022 (the “ Initial Notes”) and the 7.75% convertible senior notes due 2027 that the Company issued in
October 2024 (the “ Initial Additional Notes” and, together with the Initial Notes, the “ Existing Notes”).
Upon completion of the Offering, the aggregate principal amount of outstanding Notes was $297,170,000.

The Company issued the Notes
under an indenture dated as of June 9, 2022 (the “ Indenture”) between the Company and Wilmington Trust, National Association,
a national banking association, as trustee (the “ Trustee”).

The Notes bear interest at
a rate of 7.75% per year, payable semi-annually in arrears on June 15 and December 15 of each year, beginning (in the case of
Notes issued in the Offering) on December 15, 2025. The Notes are the general unsecured obligations of the Company and rank equal
in right of payment with the other existing and future senior unsecured indebtedness of the Company and senior in right of payment to
any indebtedness of the Company that is contractually subordinated to the Notes. The Notes, however, are effectively subordinated in right
of payment to the existing and future secured indebtedness of the Company to the extent of the value of the collateral securing such indebtedness,
and structurally subordinated to the claims of the Company’s subsidiaries’ creditors, including trade creditors.

The Notes will mature on June 15,
2027 (the “ Maturity Date”), unless earlier redeemed or repurchased by the Company or converted.