Redwood Trust Announces Closing Of Commercial Real Estate Securitization

   Redwood Trust Announces Closing Of Commercial Real Estate Securitization

PR Newswire

MILL VALLEY, Calif., Nov. 28, 2012

MILL VALLEY, Calif., Nov. 28, 2012 /PRNewswire/ -- Redwood Trust, Inc.
(NYSE:RWT) today announced the closing of a $291 million securitization of
mezzanine loans and other subordinate commercial real estate debt investments
sponsored by Redwood Commercial Mortgage Corporation (RCMC), a wholly-owned
subsidiary of Redwood, and certain other Redwood subsidiaries. An aggregate
of approximately $172 million of debt was issued with Redwood retaining the
equity interest in the portfolio. The notes have a fixed interest rate of
approximately 5.62% and are rated Baa3(sf)/BBB-(sf) by Moody's Investors
Service, Inc. and Kroll Bond Rating Agency, Inc., respectively.

The offering of the notes was effected pursuant to a private placement. The
notes are secured by a portfolio of 30 collateral interests tied to 76
underlying properties consisting of a mix of multifamily, office, hospitality,
retail, self-storage, and mixed-use properties.

UBS Securities LLC acted as the Lead Manager and Sole Bookrunner for this
transaction. Wells Fargo Securities, LLC acted as Co-Manager for this

The notes offered pursuant to this securitization are not registered under the
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from registration
requirements. This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.

Redwood Trust, Inc. (NYSE:RWT) is a publicly traded company structured as a
real estate investment trust. RCMC is a wholly-owned subsidiary of Redwood
Trust, Inc. and is the primary sponsor of the securitization described above.
RCMC provides the commercial real estate industry with reliable financing
options, including first mortgages, mezzanine loans, and preferred equity.

CAUTIONARY STATEMENT: This announcement contains forward-looking statements
within the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, including statements related to the future of
the private mortgage securitization market and the future role of Redwood
Trust and its subsidiaries in that market. Forward-looking statements involve
numerous risks and uncertainties. Actual events may differ from current
expectations and, consequently, you should not rely on these forward-looking
statements as predictions of future events. These forward-looking statements
are subject to risks and uncertainties, including, among other things, those
described in Redwood Trust's Annual Report on Form 10-K for the year ended
December 31, 2011, under the caption "Risk Factors." Other risks,
uncertainties, and factors that could cause actual results to differ
materially from those projected are described below and may be described from
time to time in reports Redwood Trust files with the Securities and Exchange
Commission, including reports on Forms 10-Q and 8-K. We undertake no
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise.

SOURCE Redwood Trust, Inc.

Contact: Christopher Abate, Chief Financial Officer, +1-415-384-3584, or Mike
McMahon, Managing Director, +1-415-384-3805
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