mREIT Redwood Trust plunges on planned convertible debt deal
BUZZ-mREIT Redwood Trust plunges on planned convertible debt deal ** Mortgage REIT Redwood Trust's RWT.N shares plunge 15.5% premarket on Thurs to $3.60, lowest since May 2020, as it looks to raise capital
** Mill Valley, California-based RWT announces private offering of $150 mln convertible bonds due 2030
** Co intends to use net offering proceeds to repurchase portion of its 2027 notes and up to $20 mln to repurchase its shares in privately negotiated transactions
** It plans to use remaining proceeds for general purposes, including to fund its operating businesses, mortgage banking platforms, acquire assets for its investment portfolio, and potential acquisitions
** RWT has about $535 mln market cap
** Through Weds close, stock shed 23% YTD
** 6 of 8 analysts rate the stock "strong buy" or "buy", 2 "hold"; median PT $6, per LSEG
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))
Recent news on Redwood Trust
See all newsIndia's Honasa Consumer falls on reports of $67 million block deal
U.S. STOCKS ON THE MOVE --Yarrow Bioscience, Chewy, GameStop
U.S. STOCKS ON THE MOVE-GameStop, Kroger, Rocket Lab
Mortgage REIT Redwood drops after upsized $185 mln convertible
Brief: Redwood Trust Prices Upsized $185.0 Million Convertible Senior Notes Offering