Company: RWT-PA
Filing Date: 2025-08-22
Form Type: 424B5
Source: 0001104659-25-081925
Chunk: 105

Company: REDWOOD TRUST INC
Filing Date: 2025-08-22
Form: 424B5
Chunk 105
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 meaning of applicable Treasury regulations), the Non-U.S. Holder owned, actually or constructively, 10% or less of the total fair market value of the notes throughout the shorter of the five-year period ending on the date of the conversion, sale, exchange or other disposition and the Non-U.S. Holder’s holding period for the notes. Our common stock is, and, although no assurance can be provided, we anticipate our common stock will continue to be, regularly traded on an established securities market.

Certain Non-U.S. Holders, including certain “qualified foreign pension funds” or entities all of the interests of which are held by such “qualified foreign pension funds,” are exempt from FIRPTA.

Non-U.S. Holders should consult their tax advisors regarding the consequences to them of a conversion, sale, exchange, redemption, retirement or other taxable disposition of a note, including under any applicable income tax treaties that may provide for different rules from those described above.

Constructive Distributions

A Non-U.S. Holder of convertible debt instruments such as the notes may, in certain circumstances, be deemed to have received distributions of stock as a result of adjustments (or failures to make adjustments) to the conversion rate of such instruments, as described above under “Material U.S. Federal Income Tax Considerations — Federal Income Tax Considerations for Holders of the Notes and Our Common Stock — Taxation of U.S. Holders of the Notes — Constructive Distributions.” If such adjustments are made, a Non-U.S. Holder will be deemed to have received constructive distributions taxable in the manner described below under “Material U.S. Federal Income Tax Considerations — Federal Income Tax Considerations for Holders of the Notes and Our Common Stock — Taxation of Non-U.S. Holders of Our Common Stock — Distributions Generally” even though such holder has not received any cash or property as a result of such adjustments. Such deemed

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distribution may be subject to U.S. federal withholding tax or backup withholding. 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 payable on the notes (or, in some circumstances, against any payments on the common stock).

Taxation of Taxable U.S. Holders of Our Common Stock

Distributions Generally

Distributions out of our