Redwood Trust, Inc. Announces Offering Of Convertible Senior Notes

      Redwood Trust, Inc. Announces Offering Of Convertible Senior Notes

PR Newswire

MILL VALLEY, Calif., Feb. 28, 2013

MILL VALLEY, Calif., Feb. 28, 2013 /PRNewswire/ -- Redwood Trust, Inc.
("Redwood") (NYSE: RWT)today announced that it plans to offer, subject to
market and other conditions, $150.0 million aggregate principal amount of
convertible senior notes due 2018 in an underwritten public offering (the
"Notes"). Redwood expects to grant the underwriters a 30-day option to
purchase up to an additional $22.5 million aggregate principal amount of the
Notes in connection with the offering, to the extent the underwriters sell
more than $150.0 million aggregate principal amount of the Notes. The Notes
will be senior unsecured obligations of Redwood. The interest rate and
offering price are to be determined by negotiations between Redwood and the
underwriters of the offering.

Redwood intends to use the net proceeds from this offering to fund its
business and investment activity, which may include funding purchases of
residential mortgage loans, funding the origination of commercial loans and
acquiring mortgage-backed securities for its investment portfolio, as well as
for other general corporate purposes.

J.P. Morgan Securities LLC and Barclays Capital Inc.are acting as joint
book-running managers for the proposed offering. Goldman, Sachs & Co. and JMP
Securities LLC are acting as co-lead managers. A copy of the prospectus
supplement and prospectus relating to these securities may be obtained, when
available, by contacting: J.P. Morgan Securities LLC c/o Broadridge Financial
Solutions, 1155 Long Island Avenue, Edgewood, New York 11717 or by calling
1-866-803-9204; or Barclays Capital Inc. c/o Broadridge Financial Solutions,
1155 Long Island Avenue, Edgewood, New York 11717 or by calling 888-603-5847.

This announcement shall not constitute an offer to sell or a 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. This announcement is being issued pursuant to and in
accordance with Rule 134 under the Securities Act of 1933, as amended. Any
offer, if at all, will be made only by means of a prospectus supplement and
the accompanying prospectus, forming a part of the effective registration

Redwood Trust, Inc. (NYSE:RWT) is a publicly traded company structured as a
real estate investment trust.

CAUTIONARY STATEMENT: This press release contains forward-looking statements
within the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, such as statements related to the offering and
the expected use of the net proceeds. Forward-looking statements involve
numerous risks and uncertainties. Redwood's actual results may differ
materially from those projected, and Redwood cautions investors not to place
undue reliance on the forward-looking statements contained in this release.
Forward-looking statements are not historical in nature and can be identified
by words such as "anticipate," "estimate," "will," "should," "expect,"
"believe," "intend," "seek," "plan," and similar expressions or their negative
forms, or by references to strategy, plans, or intentions. No assurance can be
given that the offering will be completed on the terms described, or at all,
or that the net proceeds of the offering will be used as indicated. Completion
of the offering on the terms described, and the application of net proceeds,
are subject to numerous conditions, risks, and uncertainties, many of which
are beyond the control of Redwood, including, among other things, those
described in Redwood's preliminary prospectus supplement dated February 28,
2013, the accompanying prospectus dated August 6, 2010, and the documents
incorporated in the prospectus supplement and the prospectus by reference.
Redwood undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events, or

SOURCE Redwood Trust, Inc.

Contact: Mike McMahon, Managing Director, +1-415-384-3805
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