XAI Octagon Floating Rate & Alternative Income Trust (the
“Trust”) has declared its regular monthly distribution of $0.077
per share on the Trust’s common shares (NYSE: XFLT), payable on
December 30, 2024, to common shareholders of record as of December
16, 2024, as noted below. The amount of the distribution represents
a 9.41% decrease from the previous month's distribution of $0.085
per share.
The Trust’s investment objective is to seek attractive total
return with an emphasis on income generation across multiple stages
of the credit cycle. The Trust’s investment portfolio is comprised
largely of floating-rate credit instruments and other structured
credit investments. In the past three months, the Federal Reserve
has cut the base rate twice resulting in a 0.75% decline in
interest rates, impacting floating rate securities’ income
generation. As a result, the Trust’s net investment income has
declined. With the new distribution amount of $0.077 per share, the
Trust’s annualized distribution rate on market price is 13.28% and
the annualized distribution rate on NAV is 13.85% as of market
close on November 26, 2024.
The following dates apply to the declaration:
Ex-Dividend Date
December 16, 2024
Record Date
December 16, 2024
Payable Date
December 30, 2024
Amount
$0.077 per common share
Change from Previous Month
9.41% decrease
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.
* * *
XFLT Q3 Webinar
The Trust plans to host its Quarterly Webinar on December 6,
2024, at 11:00 am (Eastern Time). Kevin Davis, Managing Director at
XA Investments will moderate the Q&A style webinar with
Kimberly Flynn, President at XA Investments, and Lauren Law, Senior
Portfolio Manager at Octagon Credit Investors.
TO JOIN VIA WEB: Please go to the Knowledge Bank section
of xainvestments.com or click here to find the online registration
link.
TO USE YOUR TELEPHONE: After joining via web, if you
prefer to use your phone for audio, you must select that option and
call in using a number below, based on your current location.
Dial: (720) 928-9299 or (213) 338-8477
or (267) 831-0333 or (312) 626-6799 or (646) 558-8656
Webinar ID: 845 9508 2601
REPLAY: A replay of the webinar will be available in the
Knowledge Bank section of 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 2016. XAI serves as the investment adviser for two
listed closed-end funds and an interval closed-end fund. The listed
closed-end funds, the XAI Octagon Floating Rate & Alternative
Income Trust (NYSE: XFLT) and Madison Covered Call & Equity
Strategy Fund (NYSE: MCN) both trade on the New York Stock
Exchange. The interval closed-end fund, Octagon XAI CLO Income Fund
(OCTIX), is newly launched and has been made widely available to
investors.
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 and
fund management.
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
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241202717275/en/
Kimberly Flynn, President XA Investments LLC Phone: 888-903-3358
Email: KFlynn@XAInvestments.com www.xainvestments.com
XAI Octagon Floating Rat... (NYSE:XFLT)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024
XAI Octagon Floating Rat... (NYSE:XFLT)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024
