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 entered into a purchase agreement
with certain institutional investors for the purchase and sale of
400,000 shares of its 6.50% Series 2026 Term Preferred Shares (the
“Preferred Shares”) in a registered direct offering pursuant to the
Trust’s effective shelf registration statement filed with the U.S.
Securities and Exchange Commission (the “SEC”). Purchasers are
purchasing Preferred Shares at the liquidation preference $25.00
per Preferred Share, resulting in proceeds (before expenses) of
approximately $10 million for the Trust, plus accrued dividends
from July 31, 2021 to but not including the date of delivery, which
will be paid by Purchasers.
The Fund’s outstanding Preferred Shares are, and the purchased
Preferred Shares will be, subject to notice of issuance, listed on
the New York Stock Exchange under the symbol “XFLTPRA.”
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. The offering is expected to
close on or about September 8, 2021, subject to the satisfaction of
customary closing conditions.
The offering of Preferred 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: XA
Investments, Attn: Investor Relations, 321 N. Clark, Suite 2430,
Chicago, IL 60647, or by emailing info@xainvestments.com (telephone
number 888-903-3358).
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, $28.4B
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 prospectus supplement, dated
September 8, 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 Preferred 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 GUARANTEEMAY LOSE
VALUE
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version on businesswire.com: https://www.businesswire.com/news/home/20210908006160/en/
Kimberly Flynn, Managing Director XA Investments LLC Phone:
1-888-903-3358 Email: info@xainvestments.com
www.xainvestments.com
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