Redwood Trust Prices $60M 9.125% Senior Notes Due 2029
Portfolio Pulse from Benzinga Newsdesk
Redwood Trust has priced $60M in 9.125% senior notes due in 2029, with the offering expected to close on January 22, 2024. The company plans to list the notes on the NYSE under 'RWTN' and anticipates trading to begin within 30 days post-issuance. The notes have been rated BBB by Egan-Jones Ratings Company. Proceeds will be used for general corporate purposes, including potential repayment of existing notes and funding various business activities.
January 18, 2024 | 7:07 am
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Redwood Trust's pricing of $60M senior notes may lead to short-term liquidity and could impact the repayment schedule of existing debts. The investment grade rating and NYSE listing could potentially enhance investor confidence.
The pricing of new senior notes typically indicates a company's active management of its capital structure and liquidity. The investment grade rating suggests a positive view of the company's creditworthiness, which could reassure investors. The intention to list the notes on the NYSE may increase their marketability and attractiveness to a broader investor base. However, the impact on the stock price may be moderated by the fact that this is a debt issuance, not equity, and the use of proceeds includes repayment of existing debt, which does not directly expand the company's operations.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80