XAI Octagon Floating Rate & Alternative Income Term Trust
(“XFLT” or the “Trust”) has declared its regular monthly
distribution of $0.073 per share on the Trust’s common shares,
payable on July 1, 2021 to common shareholders of record as of June
15, 2021, as noted below. The amount of the distribution represents
no change from the previous month's distribution amount.
The following dates apply to today’s monthly distribution
declaration:
Ex-Dividend Date
June 14, 2021
Record Date
June 15, 2021
Payable Date
July 1, 2021
Amount
$0.073 per common share
Change from Previous Month
No change
Distributions on common shares may be paid from net investment
income (regular interest and dividends), capital gains and/or a
return of capital. The specific tax characteristics of the
distributions will be reported to the Trust’s common shareholders
on Form 1099 after the end of the 2021 calendar year. Shareholders
should not assume that the source of a distribution from the Trust
is net income or profit. For further information regarding the
Trust’s distributions, please visit
www.xainvestments.com.
The Trust’s net investment income and capital gain can vary
significantly over time, however, the Trust seeks to maintain more
stable monthly distributions over time. The Trust’s investments in
CLOs may be subject to complex tax rules and the calculation of
taxable income attributed to an investment in CLO subordinated
notes can be dramatically different from the calculation of income
for financial reporting purposes under accounting principles
generally accepted in the United States (“U.S. GAAP”), and, as a
result, there may be significant differences between the Trust’s
GAAP income and its taxable income. The Trust’s final taxable
income for the current fiscal year will not be known until the
Trust’s tax returns are filed.
As a registered investment company, the Trust is subject to a 4%
excise tax that is imposed if the Trust does not distribute by the
end of any calendar year at least the sum of (i) 98% of its
ordinary income (not taking into account any capital gain or loss)
for the calendar year and (ii) 98.2% of its capital gain in excess
of its 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 Trust’s fiscal year). In
certain circumstances, the Trust may elect to retain income or
capital gain to the extent that the Board of Trustees, in
consultation with Trust management, determines it to be in the
interest of shareholders to do so.
The distributions paid by the Trust for any particular period
may be more than the amount of net investment income from that
period. As a result, all or a portion of a distribution may be a
return of capital, which is in effect a partial return of the
amount a common shareholder invested in the Trust, up to the amount
of the common shareholder’s tax basis in their common shares, which
would reduce such tax basis. Although a return of capital may not
be taxable, it will generally increase the common shareholder’s
potential gain, or reduce the common shareholder’s potential loss,
on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the
payment of such distribution is deferred by the Board of Trustees
upon a determination that such deferral is required in order to
comply with applicable law or the applicable terms or financial
covenants of the Trust’s senior securities or to ensure that the
Trust remains solvent and able to pay its debts as they become due
and continue as a going concern.
The investment objective of the Trust is to seek attractive
total return with an emphasis on income generation across multiple
stages of the credit cycle. The Trust seeks to achieve its
investment objective by investing in a dynamically managed
portfolio of opportunities primarily within the private credit
markets. Under normal market conditions, the Trust will invest at
least 80% of its Managed Assets 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 shares are traded on the New York Stock
Exchange under the symbol “XFLT.”
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, $26.5B
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.
Future distributions will be made if and when declared by the
Trust’s Board of Trustees, based on a consideration of number of
factors, including the Trust’s continued compliance with terms and
financial covenants of its 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 in
the future will be equal or similar to that described herein or
that the Board of Trustees will not decide to suspend or
discontinue the payment of distributions in the future.
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.
NOT FDIC INSURED
NO BANK GUARANTEE
MAY LOSE VALUE
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version on businesswire.com: https://www.businesswire.com/news/home/20210601005941/en/
Kimberly Flynn, Managing Director XA Investments LLC Phone:
888-903-3358 Email: KFlynn@XAInvestments.com
www.xainvestments.com
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