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Long-Term Debt | 12 Months Ended
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Dec. 31, 2021
Debt Disclosure [Abstract] |
Long-Term Debt | Long-Term Debt The table below summarizes our long-term debt, including the facilities that are available to us, the outstanding balances, the weighted average interest rate, and the maturity information at December 31, 2021 and 2020. Table 15.1 – Long-Term Debt
|  | December 31, 2021
(Dollars in Thousands) |  | Borrowings |  | Unamortized Deferred Issuance Costs / Discount |  | Net Carrying Value |  | Limit |  | Weighted Average Interest Rate (1) |  | Final Maturity
Facilities |  |  |  |  |  |  |  |  |  |  |  |
Recourse Subordinate Securities Financing |  |  |  |  |  |  |  |  |  |  |  |
Facility A |  | $ | 144,385 |  |  | $ | (313) |  |  | $ | 144,072 |  |  | N/A |  | 4.21 | % |  | 9/2024
CAFL |  |  |  |  |  |  |  |  |  |  |  |
Facility B |  | 102,351 |  |  | (353) |  |  | 101,998 |  |  | N/A |  | 4.21 | % |  | 2/2025
Facility G |  | 91,707 |  |  | (376) |  |  | 91,331 |  |  | N/A |  | 4.75 | % |  | 6/2026
Non-Recourse BPL Financing |  |  |  |  |  |  |  |  |  |  |  |
Facility H |  | 307,215 |  |  | (507) |  |  | 306,708 |  |  | 400,000 |  |  | L + 2.75% |  | N/A
Recourse BPL Financing |  |  |  |  |  |  |  |  |  |  |  |
Facility F |  | 234,349 |  |  | (123) |  |  | 234,226 |  |  | 450,000 |  |  | L + 2.21% |  | 9/2023
Facility I |  | 110,148 |  |  | — |  |  | 110,148 |  |  | 450,000 |  |  | L + 3.35% |  | 6/2023
Total Long-Term Debt Facilities |  | 990,155 |  |  | (1,672) |  |  | 988,483 |  |  |  |  |  |  |
Convertible notes |  |  |  |  |  |  |  |  |  |  |  |
4.75% convertible senior notes |  | 198,629 |  |  | (1,836) |  |  | 196,793 |  |  | N/A |  | 4.75 | % |  | 8/2023
5.625% convertible senior notes |  | 150,200 |  |  | (2,072) |  |  | 148,128 |  |  | N/A |  | 5.625 | % |  | 7/2024
5.75% exchangeable senior notes |  | 172,092 |  |  | (3,384) |  |  | 168,708 |  |  | N/A |  | 5.75 | % |  | 10/2025
Trust preferred securities and subordinated notes |  | 139,500 |  |  | (779) |  |  | 138,721 |  |  | N/A |  | L + 2.25% |  | 7/2037
Total Long-Term Debt |  | $ | 1,650,576 |  |  | $ | (9,743) |  |  | $ | 1,640,833 |  |  |  |  |  |  |
|  | December 31, 2020
(Dollars in Thousands) |  | Borrowings |  | Unamortized Deferred Issuance Costs / Discount |  | Net Carrying Value |  | Limit |  | Weighted Average Interest Rate (1) |  | Final Maturity
Facilities |  |  |  |  |  |  |  |  |  |  |  |
Recourse Subordinate Securities Financing |  |  |  |  |  |  |  |  |  |  |  |
Facility A |  | $ | 178,167 |  |  | $ | (729) |  |  | $ | 177,438 |  |  | N/A |  | 4.21 | % |  | 9/2024
Facility B |  | 102,856 |  |  | (656) |  |  | 102,200 |  |  | N/A |  | 4.21 | % |  | 2/2025
Non-Recourse BPL Financing |  |  |  |  |  |  |  |  |  |  |  |
Facility C |  | 251,721 |  |  | (2,452) |  |  | 249,269 |  |  | 372,248 |  |  | L + 7.50% |  | 6/2022
Facility D |  | 115,081 |  |  | (666) |  |  | 114,415 |  |  | 185,240 |  |  | L + 3.85% |  | 7/2022
Recourse BPL Financing |  |  |  |  |  |  |  |  |  |  |  |
Facility E |  | 51,950 |  |  | (488) |  |  | 51,462 |  |  | 350,000 |  |  | L + 3.00% |  | 5/2022
Facility F |  | 80,135 |  |  | (193) |  |  | 79,942 |  |  | 250,000 |  |  | L + 3.00% |  | 9/2023
Total Long-Term Debt Facilities |  | 779,910 |  |  | (5,184) |  |  | 774,726 |  |  |  |  |  |  |
FHLBC borrowings |  | 1,000 |  |  | — |  |  | 1,000 |  |  | 1,000 |  |  | 0.30 | % |  | 1/2026
Convertible notes |  |  |  |  |  |  |  |  |  |  |  |
4.75% convertible senior notes |  | 198,629 |  |  | (2,862) |  |  | 195,767 |  |  | N/A |  | 4.75 | % |  | 8/2023
5.625% convertible senior notes |  | 150,200 |  |  | (2,815) |  |  | 147,385 |  |  | N/A |  | 5.625 | % |  | 7/2024
5.75% exchangeable senior notes |  | 172,092 |  |  | (4,159) |  |  | 167,933 |  |  | N/A |  | 5.75 | % |  | 10/2025
Trust preferred securities and subordinated notes |  | 139,500 |  |  | (826) |  |  | 138,674 |  |  | N/A |  | L + 2.25% |  | 7/2037
Total Long-Term Debt |  | $ | 1,441,331 |  |  | $ | (15,846) |  |  | $ | 1,425,485 |  |  |  |  |  |  |
(1) Variable rate borrowings are based on 1- or 3-month LIBOR ("L" in the table above) plus an applicable spread. The following table summarizes the value of loans and securities pledged as collateral under our long-term debt facilities at December 31, 2021 and 2020. Table 15.2 – Long-Term Debt
(In Thousands) |  | December 31, 2021 |  | December 31, 2020
Collateral Type |  |  |  |
Bridge loans |  | $ | 554,597 |  |  | $ | 544,151 |
Single-family rental loans |  | 244,703 |  |  | 154,774 |
Real estate securities |  |  |  |
Sequoia securitizations (1) |  | 247,227 |  |  | 249,446 |
CAFL securitizations (1) |  | 260,405 |  |  | 114,044 |
Total real estate securities owned |  | 507,632 |  |  | 363,490 |
Other BPL investments |  | — |  |  | 21,414 |
Restricted cash |  | — |  |  | 1,100 |
Total Collateral for Long-Term Debt |  | $ | 1,306,932 |  |  | $ | 1,084,929 |
(1)Represents securities we have retained from consolidated securitization entities. For GAAP purposes, we consolidate the loans and non-recourse ABS debt issued from these securitizations. The following table summarizes the accrued interest payable on long-term debt at December 31, 2021 and 2020. Table 15.3 – Accrued Interest Payable on Long-Term Debt
(In Thousands) |  | December 31, 2021 |  | December 31, 2020
Long-term debt facilities |  | $ | 815 |  |  | $ | 1,799 |
Convertible notes |  |  |  |
4.75% convertible senior notes |  | 3,564 |  |  | 3,564 |
5.625% convertible senior notes |  | 3,896 |  |  | 3,896 |
5.75% exchangeable senior notes |  | 2,474 |  |  | 2,474 |
Trust preferred securities and subordinated notes |  | 581 |  |  | 669 |
Total Accrued Interest Payable on Long-Term Debt |  | $ | 11,330 |  |  | $ | 12,402 |
Recourse Subordinate Securities Financing Facilities In 2019, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable (i.e., not subject to margin calls based on the market value of the underlying collateral) recourse debt financing of certain Sequoia securities as well as securities retained from our consolidated Sequoia securitizations (Facility A in Table 15.1 above). The financing is fully and unconditionally guaranteed by Redwood, with an interest rate of approximately 4.21% through September 2022. The financing facility may be terminated, at our option, in September 2022, and has a final maturity in September 2024, provided that the interest rate on amounts outstanding under the facility increases between October 2022 and September 2024. In the first quarter of 2020, a subsidiary of Redwood entered into a second repurchase agreement with similar terms to the facility above to provide non-marginable recourse debt financing of certain securities retained from our consolidated CAFL securitizations (Facility B in Table 15.1 above). The financing is fully and unconditionally guaranteed by Redwood, with an interest rate of approximately 4.21% through February 2023. The financing facility may be terminated, at our option, in February 2023, and has a final maturity in February 2025, provided that the interest rate on amounts outstanding under the facility increases between March 2023 and February 2025. In the third quarter of 2021, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable recourse debt financing of certain securities retained from our consolidated CAFL securitizations (Facility G in Table 15.1 above). The financing is guaranteed by Redwood, with an interest rate of approximately 4.75% through June 2024. The financing facility may be terminated, at our option, in June 2023, and has a final maturity in June 2026, provided that the interest rate on amounts outstanding under the facility increases between June 2024 and June 2026. Non-Recourse Business Purpose Loan Financing Facilities In the second quarter of 2021, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable, non-recourse financing primarily for business purpose bridge loans (Facility H in Table 15.1 above). Borrowings under this facility accrue interest at a per annum rate equal to one-month LIBOR plus 2.75%. This facility does not have a specified maturity date, but may be subject to repayment within a year upon notification by the lender. In the third quarter of 2020, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable, non-recourse financing primarily for business purpose bridge loans (Facility D in the December 31, 2020 Table 15.1 above). Borrowings under this facility accrue interest at a per annum rate equal to one-month LIBOR plus 3.85% (with a 0.50% LIBOR floor), through July 2022. We do not have the ability to increase borrowings under this borrowing facility above the existing amounts outstanding. In the third quarter of 2021, we reclassified this facility from long-term to short-term debt as the maturity on this facility became due within a year. In the second quarter of 2020, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable, non-recourse financing primarily for business purpose bridge loans (Facility C in Table 15.1 above). Borrowings under this facility accrue interest at a per annum rate equal to one-month LIBOR plus 7.50% (with a 1.50% LIBOR floor), through June 2022 (facility is fully callable in June 2021). The revolving period ends in June 2021, and amounts borrowed under the term and revolving facilities are due in full in June 2022. We repaid this facility in full during the second quarter of 2021. Recourse Business Purpose Loan Financing Facilities In the second quarter of 2021, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable financing for business purpose bridge loans and single-family rental loans (Facility I in Table 15.1 above). At December 31, 2021, borrowings under this facility accrue interest at a weighted average per annum rate equal to three-month LIBOR plus 3.35% through June 2023 and are recourse to Redwood. At December 31, 2021 this facility has an aggregate maximum borrowing capacity of $450 million. In the third quarter of 2020, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable financing for business purpose bridge loans and single-family rental loans (Facility F in Table 15.1 above). At December 31, 2021, borrowings under this facility accrue interest at a weighted average per annum rate equal to three-month LIBOR plus 2.21% through September 2023 and are recourse to Redwood. At December 31, 2021 this facility has an aggregate maximum borrowing capacity of $450 million. In the second quarter of 2020, a subsidiary of Redwood entered into a repurchase agreement providing non-marginable financing for business purpose bridge loans and single-family rental loans (Facility E in Table 15.1 above). Borrowings under this facility accrue interest at a per annum rate equal to three-month LIBOR plus 2.75% through March 2022 and are recourse to Redwood. This facility has an aggregate maximum borrowing capacity of $350 million. In the second quarter of 2021, we reclassified this facility from long-term to short-term debt as the maturity on this facility became due within a year. Convertible Notes In September 2019, RWT Holdings, Inc., a wholly-owned subsidiary of Redwood Trust, Inc., issued $201 million principal amount of 5.75% exchangeable senior notes due 2025. After deducting the underwriting discount and offering costs, we received $195 million of net proceeds. Including amortization of deferred debt issuance costs, the weighted average interest expense yield on these exchangeable notes is approximately 6.3% per annum. At December 31, 2021, these notes were exchangeable at the option of the holder at an exchange rate of 55.2644 common shares per $1,000 principal amount of exchangeable senior notes (equivalent to an exchange price of $18.09 per common share). Upon exchange of these notes by a holder, the holder will receive shares of our common stock. During the second quarter of 2020, we repurchased $29 million par value of these notes at a discount and recorded a gain on extinguishment of $6 million in Realized gains, net on our consolidated statements of income (loss). In June 2018, we issued $200 million principal amount of 5.625% convertible senior notes due 2024 at an issuance price of 99.5%. These convertible notes require semi-annual interest payments at a fixed coupon rate of 5.625% until maturity or conversion, which will be no later than July 15, 2024. After deducting the issuance discount, the underwriting discount and offering costs, we received $194 million of net proceeds. Including amortization of deferred debt issuance costs and the debt discount, the weighted average interest expense yield on these convertible notes is approximately 6.2% per annum. These notes are convertible at the option of the holder at a conversion rate of 54.8317 common shares per $1,000 principal amount of convertible senior notes (equivalent to a conversion price of $18.24 per common share). Upon conversion of these notes by a holder, the holder will receive shares of our common stock. During the second quarter of 2020, we repurchased $50 million par value of these notes at a discount and recorded a gain on extinguishment of $9 million in Realized gains, net on our consolidated statements of income (loss). In August 2017, we issued $245 million principal amount of 4.75% convertible senior notes due 2023. After deducting the underwriting discount and offering costs, we received $238 million of net proceeds. Including amortization of deferred debt issuance costs, the weighted average interest expense yield on these convertible notes is approximately 5.3% per annum. At December 31, 2021, these notes were convertible at the option of the holder at a conversion rate of 54.4764 common shares per $1,000 principal amount of convertible senior notes (equivalent to a conversion price of $18.36 per common share). Upon conversion of these notes by a holder, the holder will receive shares of our common stock. During the second quarter of 2020, we repurchased $46 million par value of these notes at a discount and recorded a gain on extinguishment of $10 million in Realized gains, net on our consolidated statements of income (loss). Trust Preferred Securities and Subordinated Notes At December 31, 2021, we had trust preferred securities and subordinated notes outstanding of $100 million and $40 million, respectively. This debt requires quarterly interest payments at a floating rate equal to three-month LIBOR plus 2.25% until the notes are redeemed. The $100 million trust preferred securities will be redeemed no later than January 30, 2037, and the $40 million subordinated notes will be redeemed no later than July 30, 2037. Under the terms of this debt, we covenant, among other things, to use our best efforts to continue to qualify as a REIT. If an event of default were to occur in respect of this debt, we would generally be restricted under its terms (subject to certain exceptions) from making dividend distributions to stockholders, from repurchasing common stock or repurchasing or redeeming any other then-outstanding equity securities, and from making any other payments in respect of any equity interests in us or in respect of any then-outstanding debt that is pari passu or subordinate to this debt.

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