Redwood Trust (RWT) Prices $185M of Convertibles. Does Maturity Relief Justify Higher Interest?
Redwood Trust (RWT) priced $185M in 7% convertible notes due 2030, using proceeds to repurchase $123.79M of 7.75% notes due 2027 and $20M in common shares. The move extends debt maturity and reduces coupon rates but increases total principal and annual interest expense. Investors weigh the trade-offs of reduced near-term refinancing risk against higher long-term debt obligations.


