Redwood Trust Stock Falls 22% After $150M Convertible Notes Offering Announcement

Redwood Trust shares dropped roughly 22% on September 10, 2026, after the Mill Valley, California-based mortgage real estate investment trust announced a $150 million private offering of convertible senior notes due 2030. The notes, to be sold to qualified institutional buyers under Rule 144A, are senior unsecured obligations of the company. Redwood also granted initial purchasers an option to buy up to an additional $22.5 million in notes within 13 days of issuance, bringing the potential total offering size to $172.5 million.

Separately on the same day, Redwood Trust announced its third quarter 2026 common and preferred dividends. The board declared a regular common stock dividend of $0.18 per share, unchanged from the second quarter of 2026. The company's 10% Fixed Rate Preferred Series A was declared at $0.625 per share for the quarter.