XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per Share

Rhea-AI Summary

XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT) has announced a regular monthly distribution of $0.073 per share to common shareholders. This payment will be made on February 1, 2021, to shareholders on record as of January 15, 2021. Notably, this distribution amount represents no change from the previous month. It is important for investors to note that distributions may consist of income, capital gains, and potential returns of capital, which may affect their tax implications. More details can be found at xainvestments.com.

Positive

• Regular monthly distribution maintained at $0.073 per share.
• Distribution showcases stability in the Trust's payout.

Negative

• None.

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 February 1, 2021 to common shareholders of record as of January 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		January 14, 2021
Record Date		January 15, 2021
Payable Date		February 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 2020 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

FAQ

What is the latest distribution amount for XFLT?

The latest distribution amount for XFLT is $0.073 per share.

When will XFLT's distribution be paid?

XFLT's distribution will be paid on February 1, 2021.

What is the record date for XFLT's distribution?

The record date for XFLT's distribution is January 15, 2021.

Was there any change in the distribution amount for XFLT?

No, there was no change in the distribution amount from the previous month.