Redwood Trust

Bradley L. Radoff, a major shareholder of Redwood Trust, urged the board to hire an investment banker and launch a sale process. He criticized the recent refinancing as either a dilution attempt or incompetence and complained about high board compensation. Radoff said the stock is consistently trading at a discount and announced he would nominate an alternative slate of candidates for the 2027 annual meeting if no strategic review is initiated. » More on de.investing.com

Redwood Trust privately priced senior 7.00% convertible notes due 2030 totaling $185 million (originally $150 million, with an option for an additional $20 million); closing expected September 15, 2026. Interest will be paid semiannually; the initial conversion rate is 204.0608 common shares per $1,000 principal (conversion price approximately $4.90, about a 35% premium to the last close). Approximately $129.29 million of the net proceeds are expected to be used to repurchase its senior 7.75% convertible notes due 2027, about $20 million to acquire 5,509,641 of its common shares; the remainder for general corporate purposes. The notes and the shares to be issued upon conversion were not registered under the Securities Act of 1933 and are being offered pursuant to an exemption. » More on de.investing.com

Redwood Trust announced privately placed senior convertible notes of $150 million due 2030 plus a 13‑day option for an additional $22.5 million, after which the stock plunged 22.1% to $3.32. Investors fear dilution on conversion, although part of the proceeds are earmarked to repay 2027 convertibles and up to $20 million for common stock repurchases. The company also confirmed a quarterly dividend of $0.18; the shares fell to a 52‑week low, compounded by loss of S&P SmallCap 600 membership and a weaker market environment. » More on de.investing.com