Redwood Trust offers $225 million of six-year convertible notes

By Stephanie N. Rotondo

Seattle, Aug. 14 – Redwood Trust Inc. intends to price a $225 million underwritten public offering of convertible senior notes due 2023, the company said in a press release on Monday.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners. Goldman Sachs & Co. is the lead manager, and JMP Securities LLC is the co-manager.

There is a $33.75 million over-allotment option.

The notes are convertible at any time. The paper is also putable upon a fundamental change.

The convertibles are non-callable for life.

Proceeds will be used for general corporate purposes, which may include the repayment of debt – specifically, a portion of the company’s $250 million of 4.625% convertible senior notes due 2018, either via open market repurchases or privately negotiated transactions, or upon maturity on April 15.

The funds will also be used to fund the business and for investment activities.

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

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