Mortgage REIT Redwood drops after upsized $185 mln convertible
BUZZ-Mortgage REIT Redwood drops after upsized $185 mln convertible ** Mortgage REIT Redwood Trust's RWT.N shares down 2.1% at $3.55 in early Fri trading after above-planned raise
** Mill Valley, California-based RWT early Fri announced pricing private offering of $185 mln 7% convertible bonds (CBs) due Sept 15, 2030
** Conversion price of $4.90 represents 35% premium to stock's last sale of $3.63 on Thurs
** Stock on Thurs plunged nearly 15% to more than six-year low after co launched $150 mln offering
** Co intends to use approx $129 mln of net offering proceeds to repurchase portion of its 7.75% CBs due 2027 and $20 mln to repurchase its shares in privately negotiated transactions
** Remainder earmarked to fund its operating businesses, mortgage banking platforms, acquire assets for its investment portfolio, and potential acquisitions
** Stock now down 35% 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))
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Mortgage REIT Redwood drops after upsized $185 mln convertible
Brief: Redwood Trust Prices Upsized $185.0 Million Convertible Senior Notes Offering