Redwood greenshoe exercised, lifting convertibles to $287.5 million

By Devika Patel

Knoxville, Tenn., March 6 - Underwriters for Redwood Trust Inc.'s 4.625% five-year convertible senior notes exercised their over-allotment option in full for $37.5 million more of the convertibles, increasing the size of the issue to $287.5 million, the company said in an 8-K filed Wednesday with the Securities and Exchange Commission.

As previously reported, the company sold the notes at par on Feb. 28 in a registered offering via joint bookrunners J.P. Morgan Securities LLC and Barclays.

The convertibles have an initial conversion premium of 20% and an $24.31 initial conversion price, which equals a conversion ratio of 41.1320.

The notes are non-callable with no puts, and there is takeover protection.

Proceeds will be used for general corporate purposes, including funding its business and investment activity, which may include purchasing residential mortgage loans, funding the origination of commercial loans and acquiring mortgage-backed securities for its investment portfolio.

Redwood Trust is a Mill Valley, Calif.-based real estate investment trust.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.