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

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 16
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 — Offer to Repurchase Upon a Change of Control
Repurchase Event”), each holder of notes will have the right to require us to repurchase all or any part of such holder’s
notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to, but not including, the date of
repurchase. If we experience a Change of Control Repurchase Event, we cannot assure you that we would have sufficient financial resources
available to satisfy our obligations to repurchase the notes. Our failure to repurchase the notes as required under the indenture governing
the notes would result in a default under the indenture, which could result in defaults under agreements governing any of our other indebtedness,
including the acceleration of the payment of any borrowings thereunder, and have material adverse consequences for us and the holders
of the notes.

<div align='center'>S-9</div>

Holders of the notes will have different repurchase rights than holders of our 2025 Notes and 2027 Notes.

Upon the occurrence of a
“fundamental change” (as defined in the respective indentures governing the 2025 Notes and the 2027 Notes), each holder of
the 2027 Notes will have the right to require us, or in the case of the 2025 Notes, one of our subsidiaries, to repurchase all or any
part of such holder’s notes on the terms set forth in the respective indentures governing such notes. The definition of fundamental
change under the 2025 Notes and the 2027 Notes includes the events listed in the definition of Change of Control Repurchase Event, but
also includes our stockholders approving any plan or proposal for our liquidation or dissolution and “termination of trading”
events upon a delisting of our common stock. Accordingly, in the event our stockholders approve a plan or proposal for our liquidation
or dissolution or there occurs a “termination of trading” event upon a delisting our common stock (each as more fully described
in the respective indentures for the 2025 Notes or the 2027 Notes), holders of such notes will have repurchase rights that holders of
the notes will not have.

Redemption may adversely affect your return on the notes.

On or after March 1,
2027, we will have the right to redeem some or all of the notes prior to maturity, as described under “Description of the Notes
— Optional Redemption and Repayment.” We may redeem the