Company: RWT-PA
Filing Date: 2025-01-15
Form Type: 424B5
Source: 0001104659-25-003632
Chunk: 17

Company: REDWOOD TRUST INC
Filing Date: 2025-01-15
Form: 424B5
Chunk 17
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compared to rates at the time of issuance of the notes. Accordingly, you may not be able to reinvest the redemption proceeds in a comparable
security at an effective interest rate as high as that of the notes.

Credit ratings may not reflect all risks, are not recommendations to buy or hold the notes or our other senior unsecured debt, and may be subject to revision, suspension or withdrawal at any time.

Any credit rating is an assessment
by rating agencies of our ability to pay our debts when due. Consequently, real or anticipated changes in any credit ratings will generally
affect the market value of the notes. These credit ratings may not reflect the potential impact of risks relating to the structure or
marketing of the notes. Credit ratings are not a recommendation to buy, sell or hold any security, and may be revised or withdrawn at
any time by the issuing organization in its sole discretion. Neither we nor any underwriter undertakes any obligation to obtain or maintain
any credit ratings or to advise holders of notes of any changes in any credit ratings. There can be no assurance that any credit ratings
will remain for any given period of time or that such credit ratings will not be lowered or withdrawn entirely by the rating agencies
if in their judgment future circumstances relating to the basis of the credit ratings, such as adverse changes in our company, so warrant.
The conditions of the financial markets and prevailing interest rates have fluctuated in the past and are likely to fluctuate in the
future, which could have an adverse effect on the market price of the notes.

We may invest or spend the proceeds of this offering in ways with which you may not agree.

Although we have described
in this prospectus supplement, under the caption “Use of Proceeds,” how we currently intend to use the proceeds to us from
this offering, we will retain broad discretion over the use of the proceeds. Stockholders and holders of the notes may not deem such
uses desirable, and our use of the proceeds may not yield a significant return or any return at all for our stockholders. Because of
the number and variability of factors that determine our use of the proceeds from this offering, our actual uses of the proceeds from
this offering may vary substantially from our currently planned uses.

<div align='center'>S-10

USE OF PROCEEDS</div>

We estimate
that the net proceeds of this offering will be approximately $ million (or approximately $ million if the underwriters exercise their
over-allotment option in full), after deduction