Redwood Trust Plans C-Corporation Conversion and Stock Exchange Offer
Redwood Trust announced that its Board of Directors unanimously approved discontinuing its REIT election, transitioning to a taxable C-corporation effective for the calendar year ending December 31, 2027. Alongside this conversion, the company plans a preferred-for-common stock exchange offer to provide income-focused stockholders an alternative investment participation method. Additionally, the Board approved a one-for-five reverse stock split of its common stock, scheduled to take effect at market open on January 4, 2027.
Redwood Trust (RWT) announced that its Board of Directors unanimously approved a plan to discontinue the company’s election to be treated as a real estate investment trust for U.S. federal income tax purposes.
The company plans to convert from REIT status to a taxable C-corporation, effective for the calendar year ending December 31, 2027.
Redwood Trust also announced plans for a preferred-for-common stock exchange offer. The offer is designed to give existing common stockholders, particularly those who prioritize current income, an alternative way to participate in the company’s future.
As part of the C-corporation conversion, the Board unanimously approved a one-for-five reverse stock split of Redwood Trust’s common stock. The reverse stock split is scheduled to take effect at market open on January 4, 2027.
This article may include AI-generated content that is human-reviewed, which is for reference and general information purposes only and does not constitute investment advice.
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