Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 15

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 15
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the value of your notes. If we were to enter into a significant corporate transaction that negatively affects the value of the notes,
but would not constitute a Change of Control Repurchase Event, you would not have any rights to require us to repurchase the notes prior
to their maturity, which also would adversely affect your investment. Other than the rights associated with a Change of Control Repurchase
Event and the restrictions provided by the merger covenant described under “Description of the Notes — Consolidation, Merger
and Sale of Assets,” we generally have no duty to consider the interests of holders of the notes in determining whether to engage
in such transaction.

An active trading market may not develop for the notes, which could adversely affect the price of the notes in the secondary market and your ability to resell the notes should you desire to do so.

The notes are a new issue
of securities and there is no established trading market for the notes. We intend to apply to list the notes on the NYSE under the symbol
“RWTP.” If the application is approved, we expect trading in the notes on the NYSE to begin within 30 days after the notes
are first issued; however, we cannot make any assurance as to:

| · | the                                      
 development of an active trading market; |

| · | the                                               
 liquidity of any trading market that may develop; |

| · | the                                         
 ability of holders to sell their notes; and |

| · | the                                                           
 price at which the holders would be able to sell their notes. |

If a trading market were
to develop, the future trading prices of the notes will depend on many factors, including prevailing interest rates, our credit ratings
published by major rating agencies, the market for similar securities and our operating performance and financial condition. If a trading
market does develop, there is no assurance that it will continue. If an active public trading market for the notes does not develop or
does not continue, the market price and liquidity of the notes is likely to be adversely affected and notes traded after their purchase
may trade at a discount from their purchase price.

The notes are expected to
trade “flat,” meaning that purchasers will not pay, and sellers will not receive, any accrued and unpaid interest on the
notes that is not included in the trading price.

We may not be able to repurchase the notes upon a Change of Control Repurchase Event.

Upon the occurrence of a
Change of Control Repurchase Event (as defined in “Description of the Notes