Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 52

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 52
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, a significant portion of the proceeds from any sales or principal payments of these assets are generally used to repay balances under these financing sources. Similarly, all or a significant portion of cash flows from principal payments of loans and HEI at consolidated securitization entities would generally be used to repay ABS issued by those entities.

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Cash Flows from Financing Activities 

During the six months ended June 30, 2025, our net cash provided by financing activities was $2.56 billion. This primarily resulted from $2.35 billion of net borrowings under ABS issued (resulting from the issuance of six Sequoia securitizations as well as the issuance of $100 million and $109 million of ABS through two Sequoia re-securitizations of certain consolidated and unconsolidated Sequoia securities during the six months ending June 30, 2025, net of related issuance costs), and $281 million of net borrowings on debt obligations. During the six months ending June 30, 2025, net cash provided from debt obligations included the issuance of $90 million of senior notes as well as a $93 million recourse subordinate financing facility providing non-marginable debt financing of certain securities retained from our Sequoia securitizations and other third-party securities.

Material Cash Requirements

In the normal course of business, we enter into transactions that may require future cash payments. As required by GAAP, some of these obligations are recorded on the balance sheet, while others are off-balance sheet or recorded on the balance sheet in amounts different from the full contractual or notional amount of the transaction.

Our material cash requirements from known contractual and other obligations during the twelve months following June 30, 2025, include maturing debt obligations, interest payments on debt obligations and ABS issued, payments on operating leases, funding commitments for residential investor and consumer loans, strategic investments, potential repurchases of previously sold or securitized loans, and other current payables. Our material cash requirements from known contractual and other obligations beyond the twelve months following June 30, 2025, include maturing long-term debt, interest payments on long-term debt, payments on operating leases and funding commitments for residential investor bridge loans, strategic investments, and principal and interest payments under ABS issued (as described further below under Liquidity Needs for our Redwood Investments).

At June 30, 2025, we had commitments to fund up to $435 million of additional advances on existing residential investor