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XAI Octagon Floating Rate & Alternative Income Trust Declares its Monthly Common Shares Distribution of $0.085 per Share

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XAI Octagon Floating Rate & Alternative Income Trust (XFLT) has declared its monthly distribution of $0.085 per share on common shares, maintaining the same amount as the previous month. The distribution is payable on December 2, 2024, to shareholders of record as of November 15, 2024. The Trust invests primarily in floating rate credit instruments and structured credit investments, maintaining at least 80% of its Managed Assets in these instruments under normal market conditions. Distributions may come from net investment income, capital gains, or return of capital, with final tax characteristics to be reported on Form 1099.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) ha dichiarato la sua distribuzione mensile di $0,085 per azione sulle azioni ordinarie, mantenendo lo stesso importo del mese precedente. La distribuzione sarà pagabile il 2 dicembre 2024, agli azionisti registrati al 15 novembre 2024. Il Trust investe principalmente in strumenti di credito a tasso variabile e investimenti in credito strutturato, mantenendo almeno l'80% dei suoi Attivi Gestiti in questi strumenti in condizioni di mercato normali. Le distribuzioni possono derivare da redditi da investimenti netti, guadagni di capitale o restituzione di capitale, con le caratteristiche fiscali finali da riportare sul Modulo 1099.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) ha declarado su distribución mensual de $0,085 por acción sobre las acciones comunes, manteniendo la misma cantidad que el mes anterior. La distribución se pagará el 2 de diciembre de 2024, a los accionistas registrados a partir del 15 de noviembre de 2024. El Trust invierte principalmente en instrumentos de crédito a tasa variable e inversiones en crédito estructurado, manteniendo al menos el 80% de sus Activos Gestionados en estos instrumentos bajo condiciones normales del mercado. Las distribuciones pueden provenir de ingresos netos por inversiones, ganancias de capital, o devolución de capital, con las características fiscales finales que se informarán en el Formulario 1099.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT)는 보통주에 대해 $0.085 per share의 월 배당금을 발표했으며, 이는 지난 달과 동일한 금액입니다. 배당금은 2024년 12월 2일에 지급되며, 2024년 11월 15일 기준의 주주에게 지급됩니다. 이 트러스트는 주로 변동 금리 신용 상품과 구조화된 신용 투자에 투자하며, 정상적인 시장 조건에서 최소 80%의 관리 자산을 이러한 상품에 유지합니다. 배당금은 순 투자 소득, 자본 이익 또는 자본 환급에서 나올 수 있으며, 최종 세금 특성은 1099 양식에 보고됩니다.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) a déclaré sa distribution mensuelle de 0,085 $ par action sur les actions ordinaires, maintenant le même montant que le mois précédent. La distribution sera payable le 2 décembre 2024 aux actionnaires enregistrés au 15 novembre 2024. Le Trust investit principalement dans des instruments de crédit à taux variable et des investissements en crédit structuré, maintenant au moins 80 % de ses actifs gérés dans ces instruments dans des conditions de marché normales. Les distributions peuvent provenir des revenus d'investissement nets, des gains en capital ou d'un retour de capital, avec les caractéristiques fiscales finales à reporter sur le formulaire 1099.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) hat seine monatliche Ausschüttung von 0,085 $ pro Aktie auf Stammaktien erklärt und bleibt damit auf dem gleichen Niveau wie im Vormonat. Die Ausschüttung wird am 2. Dezember 2024 an die Aktionäre gezahlt, die am 15. November 2024 im Aktienregister stehen. Der Trust investiert hauptsächlich in floating rate Kreditinstrumente und strukturierte Kreditinvestitionen und hält unter normalen Marktbedingungen mindestens 80 % seiner verwalteten Vermögenswerte in diesen Instrumenten. Ausschüttungen können aus Nettoinvestitionserträgen, Kapitalgewinnen oder Kapitalrückzahlung stammen, wobei die endgültigen steuerlichen Merkmale im Formular 1099 berichtet werden.

Positive
  • Maintained stable monthly distribution of $0.085 per share
Negative
  • None.

Insights

The Trust's monthly distribution of $0.085 per share remains unchanged, maintaining its commitment to stable income generation. With a current market cap of $381M, this distribution reflects an annualized yield of approximately 12% at current market prices. The Trust's focus on floating rate credit instruments positions it well in the current high-interest-rate environment, though investors should note that distributions can include return of capital, which affects their tax basis.

The Trust's investment strategy in CLO subordinated notes and private credit markets offers exposure to higher-yielding assets, but comes with complex tax implications and potential risks. The maintenance of the distribution level suggests stable underlying portfolio performance, though investors should monitor the source of distributions in their 1099 forms to understand the tax implications of their investment.

CHICAGO--(BUSINESS WIRE)-- XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share on the Trust’s common shares (NYSE: XFLT), payable on December 2, 2024, to common shareholders of record as of November 15, 2024, as noted below. The amount of the distribution represents no change from the previous month's distribution amount of $0.085 per share.

The following dates apply to the declaration:

Ex-Dividend Date

 

November 15, 2024

 

Record Date

 

November 15, 2024

 

Payable Date

 

December 2, 2024

 

Amount

 

$0.085 per common share

 

Change from Previous Month

 

No change

Common share distributions 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 2024 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 common share monthly 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 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 to common shareholders 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 common share 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 to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust’s senior securities.

Future common share 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 common share 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 common share distributions in the future.

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,” and the Trust’s 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol “XFLTPRA”.

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, $33.4B 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.

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

Paralel Distributors, LLC - Distributor

Media Contact:

Kimberly Flynn, President

XA Investments LLC

Phone: 888-903-3358

Email: KFlynn@XAInvestments.com

www.xainvestments.com

Source: XA Investments LLC

FAQ

What is XFLT's monthly distribution amount for December 2024?

XFLT declared a monthly distribution of $0.085 per share, payable on December 2, 2024.

When is the ex-dividend date for XFLT's December 2024 distribution?

The ex-dividend date for XFLT's December 2024 distribution is November 15, 2024.

Has XFLT changed its distribution amount compared to the previous month?

No, XFLT's distribution amount of $0.085 per share remains unchanged from the previous month.

What percentage of XFLT's assets are invested in floating rate credit instruments?

Under normal market conditions, XFLT invests at least 80% of its Managed Assets in floating rate credit instruments and structured credit investments.

XAI Octagon Floating Rate and Alternative Income Trust Common Shares of Beneficial Interest

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3.07%
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0.17%
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