Company: RWT-PA
Filing Date: 2025-08-22
Form Type: 424B5
Source: 0001104659-25-081925
Chunk: 51

Company: REDWOOD TRUST INC
Filing Date: 2025-08-22
Form: 424B5
Chunk 51
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Daily share amount” means, with respect to any VWAP trading day, the quotient obtained by dividing (i) the excess, if any, of the daily conversion value for such VWAP trading day over the applicable daily maximum cash amount by (ii) the daily VWAP for such VWAP trading day. For the avoidance of doubt, the daily share amount will be zero for such VWAP trading day if such daily conversion value does not exceed such daily maximum cash amount.

Delivery of the conversion consideration

Except as described below under the captions “— Conversion rate adjustments” and “— Recapitalizations, reclassifications and changes of our common stock,” we will pay or deliver, as applicable, the consideration due upon conversion on or before the second trading day immediately after the last VWAP trading day of the observation period for such conversion.

**When Converting Holders Become Stockholders of Record**

The person in whose name any share of common stock is issuable upon conversion of any note will be deemed to become the holder of record of that share as of the close of business on the last VWAP trading day of the observation period for such conversion.

#### Conversion rate adjustments
The conversion rate will be adjusted as described below, except that we will not make any adjustments to the conversion rate if holders of the notes participate (other than in the case of a share split or share combination, or a tender or exchange offer of the type described in clause (5) below), solely as a result of holding the notes, and at the same time and upon the same terms as common stockholders participate, in any of the transactions described below without having to convert their notes, as if such holders of the notes held a number of shares of our common stock equal to the applicable conversion rate in effect immediately after the close of business on the record date for such transaction, multiplied by the principal amount (expressed in thousands) of notes held by such holders.

(1)

If we exclusively issue shares of our common stock as a dividend or distribution on all or substantially all shares of our common stock, or if we effect a share split or share combination (in each case, excluding a distribution solely pursuant to a “common stock change event,” as to which the provisions described below under the caption “— Recapitalizations, reclassifications and changes of our common stock” will apply), the conversion rate will be adjusted based on the following formula:

where,

CR 0 =

the conversion rate in effect immediately prior to the open of business on the ex-dividend date for