XAI Octagon Floating Rate & Alternative Income Term Trust Closes Public Offering of Common Shares
XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) successfully closed an underwritten public offering of 2,900,250 common shares at $8.62 each, generating approximately $23.7 million in net proceeds. The Trust aims to utilize these funds to further its investment objectives, focusing on income generation across varying credit cycles. National Securities Corporation, B. Riley Securities, and Ladenburg Thalmann acted as joint book-running managers for this offering. The shelf registration statement related to these shares is filed with the SEC.
- Raised approximately $23.7 million in net proceeds from the offering to support investment objectives.
- Common shares offered could lead to shareholder dilution.
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 closed its previously announced underwritten public offering of 2,900,250 common shares of beneficial interest (“Common Shares”) at an offering price of
As a result, the Trust received net proceeds from the offering of approximately
National Securities Corporation, B. Riley Securities, Inc. and Ladenburg Thalmann & Co. Inc. acted as joint book-running managers for the offering. Aegis Capital Corp. and Maxim Group LLC acted as lead managers for the offering. JonesTrading Institutional Services LLC, Newbridge Securities Corporation and Wedbush Securities Inc. acted as co-managers for the offering.
A shelf registration statement on Form N-2 relating to the Common Shares offered is on file with, and has been declared effective by, the Securities and Exchange Commission (the “SEC”). Copies of the prospectus supplement relating to the offering and accompanying base prospectus may be obtained from: National Securities Corporation, Attention: Adrian Adderley, 200 Vesey Street, 25th Floor, New York, New York 10281, telephone: (561) 981-1074 or by email at prospectusrequest@nationalsecurities.com; B. Riley Securities, Inc., at 1300 North 17th Street, Suite 100, Arlington, VA 22209 or by calling (703) 312‐9580 or by emailing prospectuses@brileyfin.com; or Ladenburg Thalmann, Attn: Syndicate Department, 640 5th Ave, 4th Floor, New York, NY 10019, or by emailing prospectus@ladenburg.com (telephone number 1-800-573-2541).
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,
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 February 25, 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.
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 Common 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 GUARANTEE |
MAY LOSE VALUE |
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FAQ
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