XAI Octagon Floating Rate & Alternative Income Term Trust Announces Direct Offering of Preferred Shares


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CHICAGO – (BUSINESS WIRE) – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) (NYSE: XFLT), a diversified closed-end management investment company with the investment objective of seeking an attractive total return with a focus on income generation at multiple stages of the credit cycle, has entered into a purchase agreement with certain institutional investors for the purchase and sale of 400,000 shares of its preferred stock 6.50% Series 2026 Futures (the “Preferred Shares”) in an Offer Pursuant to the Trust’s then current registration statement filed with the United States Securities and Exchange Commission (the “SEC”) . Buyers purchase preferred shares at the prime liquidation rate of $ 25.00 per preferred share, which generates proceeds (before expenses) of approximately $ 10 million for the trust, plus dividends accrued from July 31, 2021 through. ‘on the delivery date, but not included, which will be paid by buyers.

The outstanding preferred shares of the Fund are, and the preferred shares purchased will, subject to notice of issue, be listed on the New York Stock Exchange under the symbol “XFLTPRA”.

The Trust intends to use the net proceeds of the offering to invest in accordance with its investment objective and policies, to repay outstanding borrowings under its credit facility and / or for general purposes. working capital. The offer is expected to close on or around September 8, 2021, subject to the satisfaction of customary closing conditions.

The offer of Preferred Shares can only be made by means of a prospectus. Copies of the prospectus supplement relating to the offering and the accompanying base prospectus can be obtained from: XA Investments, Attn: Investor Relations, 321 N. Clark, Suite 2430, Chicago, IL 60647, or by sending an email to [email protected] (phone number 888-903-3358).

Investors can also obtain these documents free of charge from the SEC’s website at www.sec.gov.

About XA Investments

XA Investments LLC (“XAI”) acts as investment advisor to the Trust. XAI is a Chicago-based company founded by XMS Capital Partners in April 2016. In addition to investment advisory services, the company also provides investment fund structuring and advisory services focused on registered closed-end funds for meet the needs of institutional clients. XAI provides custom product creation and advisory services, including market development and research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a wide range of alternative investment strategies and managers. XAI offers individual investors access to alternative institutional-caliber managers. For more information, please visit www.xainvestments.com.

About XMS Capital Partners

XMS Capital Partners, LLC, established in 2006, is an independent global financial services firm that provides mergers and acquisitions, business advisory and asset management services to its 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”) acts as investment sub-advisor to the Trust. Octagon is an over 25-year-old, $ 28.4 billion corporate credit investment advisor focused on investments in leveraged loans, high yield bonds and structured credit (debt and equity CLO). Through fundamental credit analysis and active portfolio management, Octagon’s investment team identifies attractive relative value opportunities in lower quality asset classes, sectors and issuers. Octagon’s investment philosophy and methodology encourage and rely on dynamic internal communication to manage portfolio risk. Throughout its history, the company has applied a disciplined, repeatable and scalable approach in its efforts 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 about your particular tax situation. Income may be subject to state and local taxes, as well as alternative federal minimum tax.

Investors should carefully consider the investment objectives and policies, risk considerations, fees and expenses of the Trust before investing. The Prospectus Supplement, dated September 8, 2021, and the 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 contained in the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and is subject to change. This press release does not constitute an offer to sell or a solicitation to buy, and there will be no sale of such securities in any state or jurisdiction in which such an offer or solicitation or sale would be illegal prior to registration. or qualification under the laws of such state or jurisdiction.

This press release contains certain statements which may include “forward-looking statements”. Forward-looking statements may be identified by the words “may”, “will”, “intend”, “expect”, “estimate”, “continue”, “plan”, “anticipate” and similar and negative aspects of these terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by forward-looking statements. Many factors that could materially affect the actual results of the Trust are the performance of the portfolio of securities held by the Trust, conditions in the financial and other US and international markets, the price at which the preferred shares trade on the public markets and other factors discussed in the Trust’s prospectus supplement and accompanying base prospectus and which will be discussed in the Trust’s periodic filings with the SEC.

Although the Trust believes that the expectations expressed in these forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in these forward-looking statements. The future financial condition and results of operations of the Trust, 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 continuing obligations under federal securities laws, the Trust does not intend, and the Trust assumes no obligation, to update any forward-looking statement.

NON FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE

Kimberly Flynn, Executive Director

XA Investments LLC

Phone: 1-888-903-3358

Email: [email protected]

www.xainvestments.com

Source: XA Investments LLC


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