Redwood Trust, Inc. (NYSE:RWT) will look for investment opportunities. Redwood filed for an offering and will use the proceeds of $156 million to fund its business and investment activity, which may include funding recently completed investment transactions (including, for example, funding capital calls on a multifamily whole loan investment fund) and funding the initial cash portion of the purchase price for its pending acquisition of 5 Arches, LLC as well as new investment opportunities in bridge loans for single-family and small-balance multifamily properties, mortgage loans for single-family rental properties, residential and multifamily mortgage-backed securities, as well as for its mortgage banking business and general corporate purposes. Pending such uses, Redwood may use all or a portion of the net proceeds from this offering to temporarily reduce borrowings under its short-term residential loan warehouse facilities and its short-term real estate securities repurchase facilities.
Redwood Trust, Inc. is a specialty finance company focused on several distinct areas of housing credit. The Company's segments include Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio. The Residential Consumer Mortgage Banking segment consists of a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale to whole loan buyers, securitization through its SEMT (Sequoia) private-label securitization program, or transfer into its investment portfolio. The Residential Investor Mortgage Banking segment consists of a platform that originates business purpose lending loans for subsequent securitization, sale, or transfer into its investment portfolio. The Investment Portfolio segment consists of organic investments sourced through the Company's mortgage banking operations. Additionally, through RWT Horizons, its venture investing initiative, the Company invests in early-stage companies.