Company: RWT-PA
Filing Date: 2025-08-22
Form Type: 424B5
Source: 0001104659-25-081925
Chunk: 69

Company: REDWOOD TRUST INC
Filing Date: 2025-08-22
Form: 424B5
Chunk 69
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 that results in an adjustment of the conversion rate, a holder may be deemed to have received a distribution

S-38

TABLE OF CONTENTS

subject to U.S. federal income tax as a dividend. Because a deemed distribution would not give rise to any cash from which any applicable withholding could be satisfied, if we pay withholding taxes on behalf of a holder we may, at our option, set off any such payment against payments of cash and common stock, if any, payable on the notes (or, in some circumstances, against any payments on the common stock). See “Supplemental U.S. Federal Income Tax Considerations.”

#### Optional redemption
We may not redeem the notes at our option at any time before June 16, 2025, except pursuant to the provisions described below under the caption “— Redemption of notes to preserve REIT status.”

**Redemption on or after June 16, 2025 based on stock price condition**

Subject to the partial redemption limitation described below, we have the right, at our election, to redeem all or part (in a principal amount that is an integral multiple of $1,000) of the notes on a redemption date on or after June 16, 2025 and on or before the 25th scheduled trading day immediately before the maturity date, for cash at the redemption price described below, but only if the last reported sale price per share of common stock exceeds 130% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date we send the related redemption notice; and (ii) the trading day immediately before the date we send such notice. We refer to a redemption of the notes pursuant to the provision described in the preceding sentence as a “provisional redemption.” In addition, calling any note for provisional redemption will constitute a make-whole fundamental change with respect to that note, in which case the conversion rate applicable to the conversion of that note will be increased in certain circumstances if it is converted after it is called for provisional redemption. If we elect to redeem less than all of the outstanding notes pursuant to a provisional redemption, then the provisional redemption will not constitute a make-whole fundamental change with respect to the notes not called for provisional redemption, and holders of the notes not called for provisional redemption will not be entitled to an increased conversion rate for such notes as described above on account of the provisional redemption, except to