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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
January 1, 2001
Date of Report (Date of earliest event reported)
REDWOOD TRUST, INC.
(Exact Name of Registrant as Specified in Charter)
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Maryland 001-13759 68-0329422
(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer Identification No.)
(of Incorporation)
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591 Redwood Highway
Suite 3100
Mill Valley, California 94941
(Address of Principal Executive Offices) (Zip Code)
(415) 389-7373
(Registrant's Telephone Number,
Including Area Code)
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INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. OTHER EVENTS
The REIT Modernization Act, enacted December 15, 1999, permits a
REIT to own, after December 31, 2000, 100% of the outstanding
voting securities of a taxable subsidiary. Previously, to comply
with REIT rules, Redwood Trust, Inc. owned all of the preferred
stock of its taxable affiliate RWT Holdings, Inc., which
represented a nonvoting 99% economic interest in RWT Holdings.
The voting common stock of RWT Holdings was owned by the Chairman
and President of Redwood Trust, Inc., George E. Bull III and
Douglas B. Hansen, respectively. Effective January 1, 2001,
Redwood Trust acquired the voting common stock of RWT Holdings
for an aggregate amount of $300,000. Redwood Trust's Audit
Committee determined the purchase price based upon an independent
appraisal obtained by the Committee and through negotiations with
Messrs. Bull and Hansen, taking into account projected cost
savings to Redwood Trust from being able to consolidate RWT
Holdings into Redwood Trust's future financial statements and
other potential benefits to Redwood Trust. As a result of the
acquisition, Redwood Trust owns 100% of the voting common stock
of RWT Holdings. Redwood Trust's consolidated financial
statements beginning with fiscal year 2001 will include RWT
Holdings as a consolidated wholly-owned subsidiary.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
Date: January 10, 2001
REDWOOD TRUST, INC.
By: /s/ Harold F. Zagunis
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Harold F. Zagunis
Vice President, Chief Financial Officer,
Treasurer, Controller and Secretary
