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XAI Octagon Floating Rate & Alternative Income Trust Declares its Monthly Common Shares Distribution and Quarterly Preferred Shares Dividend

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XAI Octagon Floating Rate & Alternative Income Trust (XFLT) has declared its regular monthly distribution of $0.085 per common share and a quarterly preferred dividend of $0.40625 per share for its 6.50% Series 2026 Term Preferred Shares (XFLTPRA). The ex-dividend date, record date, and payable date for both are set for October 15, 2024, October 15, 2024, and November 1, 2024, respectively. There is no change from the previous declaration.

The Trust's distributions may come from various sources, including net investment income, capital gains, and return of capital. The Trust aims to maintain stable monthly distributions for common shareholders while complying with applicable laws and financial covenants. The investment objective of XFLT is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) ha dichiarato la sua regolare distribuzione mensile di $0.085 per azione comune e un dividendo preferenziale trimestrale di $0.40625 per azione per le sue Azioni Preferenziali Serie 6.50% 2026 (XFLTPRA). La data di stacco del dividendo, la data di registrazione e la data di pagamento per entrambe sono fissate per 15 ottobre 2024, 15 ottobre 2024 e 1 novembre 2024, rispettivamente. Non ci sono cambiamenti rispetto alla dichiarazione precedente.

Le distribuzioni del Trust possono provenire da diverse fonti, inclusi reddito da investimenti netti, guadagni in conto capitale e restituzione di capitale. L'obiettivo del Trust è mantenere distribuzioni mensili stabili per gli azionisti comuni, rispettando le leggi applicabili e i vincoli finanziari. L'obiettivo di investimento di XFLT è cercare un rendimento totale attraente con un'enfasi sulla generazione di reddito attraverso molteplici fasi del ciclo del credito.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) ha declarado su distribución mensual regular de $0.085 por acción ordinaria y un dividendo preferente trimestral de $0.40625 por acción para sus Acciones Preferentes Serie 6.50% 2026 (XFLTPRA). La fecha ex-dividendo, la fecha de registro y la fecha de pago para ambas se han fijado para 15 de octubre de 2024, 15 de octubre de 2024 y 1 de noviembre de 2024, respectivamente. No hay cambios con respecto a la declaración anterior.

Las distribuciones del Trust pueden provenir de diversas fuentes, incluyendo ingresos netos por inversiones, ganancias de capital y retorno de capital. El objetivo del Trust es mantener distribuciones mensuales estables para los accionistas comunes cumpliendo con las leyes aplicables y los convenios financieros. El objetivo de inversión de XFLT es buscar un retorno total atractivo con énfasis en la generación de ingresos a través de múltiples etapas del ciclo crediticio.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT)$0.085의 보통주당 정기 월 배당금과 6.50% 시리즈 2026 우선주(XFLTPRA)에 대해 $0.40625의 분기별 우선 배당금을 선언했습니다. 배당락일, 기록일, 지급일은 각각 2024년 10월 15일, 2024년 10월 15일, 2024년 11월 1일로 설정되었습니다. 이전 선언에서 변경 사항은 없습니다.

Trust의 분배금은 순투자수익, 자본 이득 및 자본 반환을 포함한 다양한 출처에서 발생할 수 있습니다. Trust는 관련 법률 및 재무 약정을 준수하면서 보통주주에게 안정적인 월 분배금을 유지하는 것을 목표로 합니다. XFLT의 투자 목표는 신용 주기의 여러 단계에서 수익 창출에 중점을 두고 매력적인 총 수익을 추구하는 것입니다.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) a déclaré sa distribution mensuelle régulière de 0,085 $ par action ordinaire et un dividende préférentiel trimestriel de 0,40625 $ par action pour ses Actions Préférentielles Série 6,50 % 2026 (XFLTPRA). La date ex-dividende, la date d'enregistrement et la date de paiement pour les deux sont fixées au 15 octobre 2024, 15 octobre 2024 et 1er novembre 2024, respectivement. Aucune modification par rapport à la déclaration précédente n'est à signaler.

Les distributions du Trust peuvent provenir de diverses sources, y compris des revenus nets d'investissement, des gains en capital et un retour de capital. Le Trust vise à maintenir des distributions mensuelles stables pour les actionnaires ordinaires tout en respectant les lois applicables et les conventions financières. L'objectif d'investissement de XFLT est de rechercher un rendement total attrayant avec un accent mis sur la génération de revenus à travers plusieurs étapes du cycle de crédit.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) hat seine regelmäßige monatliche Ausschüttung von $0.085 pro Stammaktie sowie eine vierteljährliche Vorzugsdividende von $0.40625 pro Aktie für seine 6,50% Serie 2026 Vorzugsaktien (XFLTPRA) erklärt. Der Ex-Dividendentag, der Stichtag und der Zahlungstermin für beide sind auf 15. Oktober 2024, 15. Oktober 2024 und 1. November 2024 festgelegt. Es gibt keine Änderungen zur vorherigen Erklärung.

Die Ausschüttungen des Trusts können aus verschiedenen Quellen stammen, einschließlich Nettoanlageerträgen, Kapitalgewinnen und Rückzahlungen von Kapital. Der Trust verfolgt das Ziel, stabile monatliche Ausschüttungen für die Stammaktionäre aufrechtzuerhalten und gleichzeitig geltendes Recht und finanzielle Verpflichtungen einzuhalten. Das Anlageziel von XFLT besteht darin, attraktive Gesamterträge mit einem Schwerpunkt auf Einkommensgenerierung durch verschiedene Phasen des Kreditzyklus zu erzielen.

Positive
  • Consistent monthly distribution of $0.085 per common share maintained
  • Quarterly preferred dividend of $0.40625 per share declared
  • Trust aims for stable distributions to common shareholders
  • Investment strategy focuses on attractive total return with emphasis on income generation
Negative
  • Distributions may include return of capital, potentially reducing shareholder's tax basis
  • Future distributions not guaranteed and subject to Board approval
  • Trust's investments in CLOs subject to complex tax rules
  • 4% excise tax risk if certain distribution requirements are not met

CHICAGO--(BUSINESS WIRE)-- XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share of the Trust’s common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust’s 6.50% Series 2026 Term Preferred Shares (NYSE: XFLTPRA).

The following dates apply to each declaration:

Share Class

Ex-Dividend Date

Record Date

Payable Date

Amount

Change from Previous Declaration

XFLT

October 15, 2024

October 15, 2024

November 1, 2024

$0.085

No Change

XFLTPRA

October 15, 2024

October 15, 2024

October 31, 2024

$0.40625

No Change1

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 January 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.

Preferred shareholders are entitled to receive cumulative cash dividends and distributions on the Trust’s 6.50% Series 2026 Term Preferred Shares, when, as and if declared by, or under authority granted by, the Board of Trustees of the Trust out of funds legally available for distribution and in preference to dividends and distributions on common shares. If the Trust is unable to distribute the full dividend amount due in a dividend period on the Trust’s 6.50% Series 2026 Term Preferred Shares, the dividends will be distributed on a pro rata basis among the preferred shareholders.

Distributions and dividends shall be paid on the Payable Date listed above unless the payment of such distribution or dividend 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, with regard to the Trust’s regular monthly distribution to common shareholders, 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, $34.2B 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

1 The Trust’s 6.50% Series 2026 Term Preferred Shares dividend is calculated based on the preferred shares Liquidation Preference of $25.00 per share and the fixed dividend rate of 6.50%.

Kimberly Flynn, President

XA Investments LLC

Phone: 888-903-3358

Email: KFlynn@XAInvestments.com

www.xainvestments.com

Source: XA Investments LLC

FAQ

What is the monthly distribution amount for XFLT common shares?

The monthly distribution for XFLT common shares is $0.085 per share.

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

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

What is the quarterly dividend for XFLT's preferred shares (XFLTPRA)?

The quarterly dividend for XFLT's preferred shares (XFLTPRA) is $0.40625 per share.

Has XFLT changed its distribution amount from the previous declaration?

No, there is no change in the distribution amount from the previous declaration for both common and preferred shares.

What is the investment objective of XAI Octagon Floating Rate & Alternative Income Trust (XFLT)?

XFLT's investment objective is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle.

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

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