XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Common Stock Distribution of $0.073 Per Share


CHICAGO–(BUSINESS WIRE)–XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) has declared its regular monthly distribution of $0.073 per share on common stock of the Trust (NYSE: XFLT), payable December 1, 2021 to common stockholders registered as of November 16, 2021, as indicated below. The distribution amount represents no change from the previous month’s distribution amount.

The following dates apply to the declaration:

Ex-dividend date

November 15, 2021

Registration Date

November 16, 2021

Payment date

December 1, 2021


$0.073 per common share

Change from previous month

No change

Distributions on common shares may be made from net investment income (regular interest and dividends), capital gains and/or return of capital. The specific tax characteristics of the distributions will be disclosed to common shareholders of the Trust on Form 1099 after the end of calendar year 2021. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For more information regarding the Trust’s distributions, please visit www.xainvestments.com.

The Trust’s net investment income and capital gain may vary significantly over time; however, the Trust seeks to maintain more stable monthly common share distributions over time. The Trust’s investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in subordinated CLO bonds may be materially different from the calculation of income for financial reporting purposes under accounting principles. generally accepted in the United States (“US GAAP”), and therefore there may be material differences between the Trust’s GAAP income and its taxable income. The Trust’s final taxable income for the current year will not be known until the Trust’s tax returns have been filed.

As a registered investment company, the Trust is subject to a 4% excise tax which is imposed if the Trust does not distribute to common shareholders by the end of a calendar year at least the sum of ( i) 98% of his ordinary income (without taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of his capital gain in excess of his capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the fiscal year of the Trust). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with management of the Trust, determines that it is in the interests of shareholders to do so.

Distributions on Common Shares paid by the Trust for a given period may exceed the amount of net investment income for that period. Therefore, all or part of a distribution may be a return of capital, which is in effect a partial return of the amount that a common shareholder has invested in the Trust, up to the amount of the tax base. of the ordinary shareholder in his ordinary shares. , which would reduce this tax base. Although a return of capital may not be taxable, it will generally increase the common shareholder’s potential gain or reduce their potential loss on any subsequent sale or other disposition of common stock.

The distribution will be paid on the payment date unless payment of such distribution is postponed by the Board of Trustees if it is determined that such postponement is necessary to comply with applicable law, to to ensure that the Trust remains solvent and able to pay its debts as they come due and continue to operate, or to comply with any financial conditions or covenants applicable to the senior securities of the Trust.

Future distributions of Common Shares will be paid if and when declared by the Trust’s Board of Directors, taking into account a number of factors, including the Trust’s continued compliance with financial covenants and conditions senior securities, the Trust’s net investment income, financial performance and available cash. There can be no assurance that the amount or timing of distributions on the Common Shares in the future will be equal or similar to those described herein or that the Board of Trustees will not determine to suspend or discontinue the payment of distributions on the Shares ordinary in the future.

The Trust’s investment objective is to seek an attractive total return with an emphasis on generating income through multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in an actively managed portfolio of opportunities primarily in the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its assets under management in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.

The Trust’s common stock trades on the New York Stock Exchange under the symbol “XFLT”, and the Trust’s 2026 6.50% Term Preferred Shares trade on the New York Stock Exchange under the symbol ” XFLTPRA”.

About XA Investments

XA Investments LLC (“XAI”) acts as the Trust’s investment advisor. 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 advisory services focusing on closed-end funds registered for meet the needs of institutional clients. XAI offers custom product creation 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 wide range of alternative investment strategies and managers. XAI offers individual investors access to institutional-grade alternative 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 clients with mergers and acquisitions, corporate advisory and asset management services. 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 the Trust’s investment sub-advisor. Octagon is a 25+ year old, below investment grade, $29.1 billion corporate credit investment adviser focused on leveraged loans, high yield and structured credit (CLO debt and equities). Through fundamental credit analysis and active portfolio management, Octagon’s investment team identifies attractive relative value opportunities in sub-investment grade asset classes, sectors and issuers. ‘investment. Octagon’s investment philosophy and methodology encourages and relies 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.

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 federal alternative minimum tax.

Investors should carefully consider the Fund’s investment objectives and policies, risk considerations, charges and expenses before investing. For more information about the Trust, please visit the Trust’s webpage at www.xainvestments.com.

This press release does not constitute an offer to sell or a solicitation to buy, and there will be no sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration. or qualification under the laws of such state or jurisdiction.





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