Redwood Trust Prices Stock Offering

Redwood Trust Inc., Mill Valley, Calif., has priced a public offering of 15 million shares of its common stock at $14.50 per share. The real estate investment trust, which invests in and finances residential and commercial mortgage loans and securities, has granted the underwriters a 30-day overallotment option to purchase up to 2.24 million additional shares of common stock. Redwood Trust will receive estimated net proceeds from the offering of $207 million, which will be used to acquire residential and commercial real estate loans and mortgage-backed securities and may also be used to co-invest with third party investors in investment funds which Redwood Trust may sponsor and for other general corporate purposes. The offering is expected to close on June 2, 2009. The sole bookrunning manager for the offering is J.P. Morgan Securities Inc.