XAI Octagon Floating Rate & Alternative Income Trust (the
“Trust”)1 (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 entered into a Purchase Agreement
with certain institutional investors for the purchase and sale of
Common Shares in a registered direct placement pursuant to the
Trust’s effective shelf registration statement filed with the SEC.
The Trust has agreed to sell 3,546,854 Common Shares at a price of
$7.0485 per Common Share. The offering is expected to close on or
about February 5, 2024, subject to the satisfaction of customary
closing conditions. The Trust expects to receive net proceeds
(before expenses) from the sale of Common Shares of approximately
$25 million.
The Common Shares were offered directly to the purchasers
without a placement agent, underwriter, broker or dealer.
The offering of Common Shares may be made only by means of a
prospectus.
Investors should consider the investment objective and
policies, risk considerations, charges and expenses of the Trust
carefully before investing. The preliminary prospectus supplement,
dated February 1, 2024, and accompanying prospectus, dated January
24, 2022, 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.
Copies of the preliminary prospectus supplement and
accompanying prospectus may be obtained from: XA Investments, Attn:
Investor Relations, 321 N. Clark, Suite 2430, Chicago, IL 60654, or
by emailing info@xainvestments.com, or by calling
1-888-903-3358.
Investors may also obtain these documents free of charge from
the SEC’s website at www.sec.gov.
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.
The Trust intends to use the net proceeds from the offering to
invest in accordance with its investment objective and policies, to
pay down outstanding borrowings under its credit facility and/or
for general working capital purposes.
_____________________________ 1 Effective February 1, 2024, the
name of the Trust was changed from “XAI Octagon Floating Rate &
Alternative Income Term Trust” to “XAI Octagon Floating Rate &
Alternative Income Trust.”
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
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 29 year-old, $35B
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.
XAI does not provide tax advice; please 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. For more information on the Trust,
please visit the Trust’s webpage at
www.xainvestments.com.
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 the Trust’s shares trade in the public markets and other
factors discussed in the Trust’s annual and semi-annual reports
filed 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/20240201447727/en/
Kimberly Flynn, Managing Director XA Investments LLC Phone:
1-888-903-3358 Email: info@xainvestments.com
www.xainvestments.com
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