XAI Octagon Floating Rate & Alternative Income Term Trust
(the “Trust”) (NYSE: XFLT), a diversified, closed-end management
investment company with an investment objective to seek attractive
total return with an emphasis on income generation across multiple
stages of the credit cycle, has priced its previously announced
underwritten public offering of common shares of beneficial
interest (“Common Shares”) pursuant to the Fund’s effective shelf
registration statement filed with the U.S. Securities and Exchange
Commission (the “SEC”). The Trust agreed to sell 3,100,000 Common
Shares at a price to the public of $8.50 per Common Share. In
addition, the Trust has granted the underwriters a 30-day option to
purchase up to 465,000 additional Common Shares to cover
over-allotments, if any.
The Trust expects to receive net proceeds (before expenses) from
the offering, excluding the exercise of the over-allotment option,
if any, of approximately $25.3 million. Assuming the full exercise
of the over-allotment option, the net proceeds (before expenses)
may reach approximately $29.1 million.
The Trust intends to invest the net proceeds from the offering
in accordance with its investment objective and policies. The
offering is expected to close on or about July 23, 2021, subject to
the satisfaction of customary closing conditions.
B. Riley Securities, Inc. and Ladenburg Thalmann & Co. Inc.
are acting as joint book-running managers for the offering. Aegis
Capital Corp., InspereX LLC, Maxim Group LLC, Newbridge Securities
Corporation and Wedbush Securities Inc. are serving as co-managers
for the offering.
The offering of Common Shares may be made only by means of a
prospectus. Copies of the prospectus supplement relating to the
offering and accompanying base prospectus may be obtained from: B.
Riley Securities, Inc., 1300 North 17th Street, Suite 100,
Arlington, VA 22209 or by calling (703) 312‐9580 or by emailing
prospectuses@brileyfin.com; or Ladenburg Thalmann, Attn: Syndicate
Department, 640 5th Ave, 4th Floor, New York, NY 10019 or by
calling 1-800-573-2541 or by emailing prospectus@ladenburg.com.
Investors may also obtain these documents free of charge from
the SEC’s website at www.sec.gov.
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment
adviser. XAI is a Chicago-based firm founded by XMS Capital
Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and
consulting services focused on registered closed-end funds to meet
institutional client needs. XAI offers custom product build and
consulting services, including development and market research,
sales, marketing, fund management and administration. XAI believes
that the investing public can benefit from new vehicles to access a
broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber
alternative managers. For more information, please visit
www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global,
independent financial services firm providing M&A, corporate
advisory and asset management services to clients. It has offices
in Chicago, Boston and London. For more information, please visit
www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s
investment sub-adviser. Octagon is a 25+ year old, $27.6B
below-investment grade corporate credit investment adviser focused
on leveraged loan, high yield bond and structured credit (CLO debt
and equity) investments. Through fundamental credit analysis and
active portfolio management, Octagon's investment team identifies
attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon’s investment
philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm
has applied a disciplined, repeatable and scalable approach in its
effort to generate attractive risk-adjusted returns for its
investors. For more information, please visit
www.octagoncredit.com.
The Trust, XAI and Octagon do not provide tax advice; consult a
professional tax advisor regarding your specific tax situation.
Income may be subject to state and local taxes, as well as the
federal alternative minimum tax.
Investors should consider the investment objectives and
policies, risk considerations, charges and expenses of the Trust
carefully before investing. The preliminary prospectus supplement,
dated July 20, 2021, and accompanying prospectus, dated February 2,
2021, each of which has been filed with the SEC, contain a
description of these matters and other important information about
the Trust and should be read carefully before investing.
The information in the preliminary prospectus supplement, the
accompanying prospectus and this press release is not complete and
may be changed. This press release shall not constitute an offer to
sell or a solicitation to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer or
solicitation or sale would be unlawful prior to registration or
qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include
“forward-looking statements.” Forward-looking statements can be
identified by the words “may,” “will,” “intend,” “expect,”
“estimate,” “continue,” “plan,” “anticipate,” and similar terms and
the negatives of such terms. By their nature, all forward-looking
statements involve risks and uncertainties, and actual results
could differ materially from those contemplated by the
forward-looking statements. Many factors that could materially
affect the Trust’s actual results are the performance of the
portfolio of securities held by the Trust, the conditions in the
U.S. and international financial and other markets, the price at
which Common Shares trade in the public markets and other factors
discussed in the Trust’s prospectus supplement and accompanying
base prospectus and to be discussed in the Trust’s periodic filings
with the SEC.
Although the Trust believes that the expectations expressed in
such forward-looking statements are reasonable, actual results
could differ materially from those expressed or implied in such
forward-looking statements. The Trust’s future financial condition
and results of operations, as well as any forward-looking
statements, are subject to change and are subject to inherent risks
and uncertainties. You are cautioned not to place undue reliance on
these forward-looking statements, which are made as of the date of
this press release. Except for the Trust’s ongoing obligations
under the federal securities laws, the Trust does not intend, and
the Trust undertakes no obligation, to update any forward-looking
statement.
NOT FDIC INSURED
NO BANK GUARANTEE
MAY LOSE VALUE
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version on businesswire.com: https://www.businesswire.com/news/home/20210721005574/en/
Kimberly Flynn, Managing Director XA Investments LLC Phone:
1-888-903-3358 Email: info@xainvestments.com
www.xainvestments.com
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