CHICAGO–(COMMERCIAL THREAD) – XAI Octagon Floating Rate & Alternative Income Term Trust (the âTrustâ) (NYSE: XFLT), a diversified closed-end investment company whose investment objective is to seek an attractive total return by investing ‘focus on generating income in multiple stages of the credit cycle, has priced its previously announced public offering of common shares of beneficial interest (the “common shares”) in accordance with the current registration statement of the Fund filed with the United States Securities and Exchange Commission (the âSECâ). The Trust has agreed to sell 3,100,000 common shares at the public price 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 any excess 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) could reach approximately $ 29.1 million.
The Trust intends to invest the net proceeds of the Offering in accordance with its investment objective and policies. The offer is expected to close on or around July 23, 2021, subject to the satisfaction of customary closing conditions.
B. Riley Securities, Inc. and Ladenburg Thalmann & Co. Inc. are acting as co-book managers for the offering. Aegis Capital Corp., InspereX LLC, Maxim Group LLC, Newbridge Securities Corporation and Wedbush Securities Inc. are the co-managers of the offering.
The distribution of common 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: B. Riley Securities, Inc., 1300 North 17th Street, Suite 100, Arlington, VA 22209 or by calling (703) 312â9580 or by sending an e-mail [email protected]; or Ladenburg Thalmann, Attn: Syndicate Department, 640 5th Ave, 4th Floor, New York, NY 10019 or by calling 1-800-573-2541 or sending an email to [email protected]
Investors can also obtain these documents free of charge from the SEC’s website at www.sec.gov.
About XA Investments
XA Investments LLC (âXAIâ) 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 personalized 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 (âOctagonâ) acts as investment sub-advisor to the Trust. Octagon is a $ 27.6 billion corporate credit investment advisor under 25 years and older specializing in 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 preliminary prospectus supplement, dated July 20, 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”, “continue,” “continue, 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 markets in the United States and internationally, the price at which the common shares are trading. trade in the public markets and other factors discussed in the Trust’s prospectus supplement and accompanying base prospectus 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.
NOT FDIC INSURED
NO BANK GUARANTEE
MAY LOSE VALUE