Redwood Trust Plans C-Corporation Conversion and Preferred-for-Common Stock Exchange Offer at a Premium

Greg H. Kubicek, Chair of the Board of Redwood Trust

“Over the past year, and in light of the Company’s strategic transformation, the Board and management team have been actively reviewing Redwood’s organizational structure, balance sheet, capital allocation priorities and long-term strategic objectives with the assistance of independent financial and legal advisors”

Greg H. Kubicek, Chair of the Board of Redwood Trust

“Today’s actions represent an important next step to enhance value and lower our cost of capital as part of the continued evolution of Redwood’s business model.”

Christopher J. Abate, Chief Executive Officer of Redwood Trust

“Redwood has evolved into a premier mortgage credit platform, sourcing, aggregating and managing residential mortgage assets for a growing network of institutional capital partners.”

Christopher J. Abate, Chief Executive Officer of Redwood Trust

“Our next chapter is about translating those competitive advantages into greater value for shareholders. With a new corporate structure and resilient core business, we are confident in our ability to lower our cost of capital, deepen access to accretive sources of financing, reduce leverage, compound earnings and book value, and create lasting value for shareholders.”

Christopher J. Abate, Chief Executive Officer of Redwood Trust

“Our earnings announcement today noted that we have upsized our corporate secured financing facility and extended its maturity through March 2030, further strengthening our financing flexibility as we begin this new chapter.”

Christopher J. Abate, Chief Executive Officer of Redwood Trust

“We know that some of our shareholders value the dividend that Redwood pays and we wanted to ensure they have an option to remain invested in the Company through our C-corporation transition process and continue to receive a high dividend.”

Christopher J. Abate, Chief Executive Officer of Redwood Trust

“The Exchange Offer is designed to provide exchanging shareholders a preferred security with an effective yield of at least 11%, while allowing other common shareholders to remain fully invested in the growth of our platform and enterprise and benefit from the book value and earnings per share accretion that would result from this Exchange Offer.”