Redwood Trust (NYSE:RWT) spotted trading -4.69% off 52-week high price. On the other end, the stock has been noted 15.26% away from the low price over the last 52-weeks. The stock changed -1.96% to recent value of $16.47. The stock transacted 1980680 shares during most recent day however it has an average volume of 993.92K shares. The company has 115.11M of outstanding shares and 110.52M shares were floated in the market.
On Sept. 19, 2019, Redwood Trust (NYSE:RWT) reported that its indirect wholly owned subsidiary, RWT Holdings (Holdings), priced $175,000,000 aggregate principal amount of its 5.75% exchangeable senior notes due 2025 (the Notes) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the Securities Act). The initial purchasers have a 13-day option to purchase up to an additional $26,250,000 aggregate principal amount of the Notes in connection with the offering. The Notes will be senior unsecured obligations of Holdings and will be fully and unconditionally guaranteed by Redwood. The offering is expected to close on September 24, 2019, subject to the satisfaction of customary closing conditions.
Interest on the Notes will be payable semiannually on April 1 and October 1, beginning on April 1, 2020. The Notes will mature on October 1, 2025, unless earlier exchanged, redeemed or repurchased. Upon exchange, holders of the Notes will receive shares of Redwood common stock. If a fundamental change (as defined in the offering memorandum relating to the Notes) occurs, then, subject to certain conditions and a limited exception, holders of the Notes may require Holdings to repurchase for cash all or part of their Notes at 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, if any, up to, but excluding, the repurchase date.
Holders may exchange any of their Notes for shares of Redwood common stock at the applicable exchange rate at any time prior to the close of business on the second scheduled trading day prior to the maturity date, unless the Notes have been previously redeemed or repurchased by Holdings. Any exchanges of Notes for shares of Redwood common stock will be subject to certain ownership limitations (as more fully described in the offering memorandum relating to the Notes). The initial exchange rate is 55.1967 shares of Redwood common stock for per $1,000 principal amount of Notes, equivalent to an initial exchange price of approximately $18.12 per share, which represents a premium of approximately 10.0% to the closing price of Redwood common stock on September 19, 2019.
Its earnings per share (EPS) expected to touch remained -16.60% for this year while earning per share for the next 5-years is expected to reach at 0.36%. RWT has a gross margin of 26.80% and an operating margin of 26.00% while its profit margin remained 24.50% for the last 12 months.
The price moved ahead of -1.94% from the mean of 20 days, -1.90% from mean of 50 days SMA and performed 1.81% from mean of 200 days price. Company’s performance for the week was -4.08%, -3.91% for month and YTD performance remained 9.29%.
Marcus Miller writes for Finance section of website. He has been a freelance journalist for 8 years, contributing to different online publications. Marcus graduated from University with a BBA in Management with a concentration in Consulting and Business Analysis. In his free time, he likes to indulge in outdoor activities, binge watch HBO GO series and catch local bands playing. He is currently based in USA, and can be reached at [email protected].
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