Redwood Trust Shares Fall After Convertible Senior Notes Offering

By EC Assets · Published 10 September 2026

Redwood Trust shares declined significantly today following the announcement of a new debt offering. The company disclosed plans for a private offering of $150 million in convertible senior notes due in 2030. This offering will be made to qualified institutional buyers. Shares of Redwood Trust slid 18% in response to the news. Another report indicated the stock was plunging 22% today. The company, a leader in expanding access to housing, operates under the NYSE ticker RWT. In separate announcements, Redwood Trust also declared its third-quarter 2026 common and preferred dividends. The Board of Directors declared a third-quarter 2026 regular common stock dividend of $0.18 per share. This dividend is payable on September 30, 2026, to stockholders of record on an unspecified date. Earlier developments included Redwood Trust pricing approximately $40 million aggregate principal amount of its 7.75% convertible senior notes due 2027. This involved a reopening of an existing debt instrument. The company is headquartered in Mill Valley, California. Analysts have provided varied ratings for Redwood Trust in the latest quarter. A total of nine analysts offered their perspectives on the stock. Some analysts see potential in Redwood Trust, with one firm setting a 12-month base case price target of $5.52. This target reflects a 35% total return potential. This analysis suggested that legacy losses obscure a profitable mortgage banking franchise. Upcoming events include the payment of the third-quarter 2026 common stock dividend on September 30, 2026. This article is intended for informational purposes only. It does not constitute investment advice.