(RTTNews) - Redwood Trust, Inc. (RWT), a housing finance company, on Friday priced an upsized $185 million offering of 7% convertible senior notes due 2030.

The offering is expected to close on September 15.

The initial conversion price is approximately $4.90 per share, representing a premium of about 35% over its September 10 closing price.

The notes were priced in a private offering to qualified institutional buyers.

The offering size was increased from the previously announced $150 million.

The notes will mature on September 15, 2030, unless earlier repurchased, redeemed or converted.

The company intends to use about $129.29 million of the proceeds to repurchase about $123.79 million of its 7.75% convertible senior notes due 2027.

The company also intends to use about $20 million to repurchase 5.51 million common shares.

The company said that the remaining proceeds will be used for general corporate purposes, including investments and strategic acquisitions.

On Thursday, Redwood Trust closed trading 2.04% lesser at $23.03 on the New York Stock Exchange.