Redwood Have confidence in (NYSE:RWT) has priced $200M mixture principal volume of its 7.75% convertible senior notes owing 2027.
The supplying was upsized from the beforehand announced $150M.
First purchasers granted 13 times time period to order up to an added $30M principal quantity of notes.
Curiosity will be payable semi-per year in arrears on June 15 and December 15 of every yr, commencing on December 15, 2022
The notes will mature on June 15, 2027, unless of course earlier redeemed or transformed.
The first conversion rate is 95.6823 shares of widespread inventory for every $1,000 principal sum of notes, equal to a conversion value of ~$10.45 for every share, which is an ~12.50% high quality to the closing value of Redwood’s popular stock on June 6, 2022.
The redemption cost for any observe referred to as for redemption will be a money amount of money equal to the principal amount of money of the notes to be redeemed, in addition accrued and unpaid desire, if any.
Web proceeds to be utilized for investment decision and funding functions, as effectively as for basic company uses and likely open industry purchases of prevalent inventory or personal debt.
Additionally, it intends to use ~$25.0M of the web proceeds to repurchase ~2.7M shares of its popular inventory concurrently with the offering in privately negotiated transactions.
Presenting is expected to shut on June 9, 2022.