CHICAGO, July 23, 2021– (BUSINESS WIRE) – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) (NYSE: XFLT), a diversified, closed-ended management company whose investment objective is to achieve an attractive total return with a focus on multi-phased income generation of the credit cycle, has completed its previously announced public offer of 3,565,000 common shares of economic interest (“Common Shares”) at an offer price of $ 8.50 per common share.
As a result, the Trust received approximately $ 29.0 million in net proceeds from the offering. The Trust intends to invest the net proceeds from the Offer in accordance with its investment objective and policy.
B. Riley Securities, Inc. and Ladenburg Thalmann & Co. Inc. acted as joint book-running managers for the offering. Aegis Capital Corp., InspereX LLC, Maxim Group LLC, Newbridge Securities Corporation, and Wedbush Securities Inc. acted as co-managers for the offering.
A Shelf Registration Statement on Form N-2 in relation to the common stock being offered is on file with and has been declared effective by the Securities and Exchange Commission (the “SEC”). Copies of the Supplement to the Offering and the accompanying Base Prospectus are available from: B. Riley Securities, Inc., 1300 North 17th Street, Suite 100, Arlington, VA 22209 or by calling (703) 312-9580 or emailing Prospectuses @ brileyfin.com; or Ladenburg Thalmann, Attn: Syndicate Department, 640 5th Ave, 4th Floor, New York, NY 10019 or by phone at 1-800-573-2541 or by email [email protected]
Investors can also obtain these documents free of charge from the SEC’s website at www.sec.gov.
About XA Investments
XA Investments LLC (“XAI”) is acting as investment advisor to the Trust. XAI is a Chicago-based company founded by XMS Capital Partners in April 2016. In addition to investment advisory services, the company also provides mutual fund structuring and advisory services with an emphasis on registered closed-end funds to meet the needs of institutional clients. XAI provides custom product development and advisory services including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to gain access to a wide range of alternative investment strategies and managers. XAI offers private investors access to alternative managers of institutional quality. More information is available at www.xainvestments.com.
About XMS Capital Partners
Founded in 2006, XMS Capital Partners, LLC is a global, independent financial services company providing M&A, business advisory, and wealth management services to its clients. It has offices in Chicago, Boston and London. More information is available at www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) is acting as sub-investment advisor to the Trust. Octagon is a 25-year-old, $ 27.6 billion sub-investment-grade corporate loan investment focused on leveraged loans, high yield bonds and structured credit (CLO Debt and Equity). Through fundamental credit analysis and active portfolio management, Octagon’s investment team identifies attractive relative value opportunities in sub-investment grade asset classes, sectors and issuers. Octagon’s investment philosophy and methodology encourages and relies on dynamic internal communication to manage portfolio risk. Throughout its history, the company has taken a disciplined, repeatable, and scalable approach to delivering attractive risk-adjusted returns for its investors. More information is available at www.octagoncredit.com.
The Trust, XAI, and Octagon do not provide tax advice; Consult a Professional Tax Advisor About Your Specific Tax Situation Income may be subject to state and local taxes, as well as state alternative minimum taxes.
Investors should carefully consider the investment objectives and policies, risk considerations, fees and costs of the Fund before investing. The Prospectus Supplement dated July 21, 2021 and the accompanying prospectus dated February 2, 2021, each 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 does not constitute an offer to sell or an invitation to buy, nor will any sale of these securities be made in any state or jurisdiction in which such offer or solicitation or sale is prior to registration or qualification under the law of such state or jurisdiction.
This press release contains certain statements that may contain “forward-looking statements”. Forward-looking statements can be identified by the words “may”, “will”, “intend”, “expect”, “estimate”, “continue”, “plan”, “foresee” and similar terms and their negative conditions. All forward-looking statements inherently involve risks and uncertainties and actual results could differ materially from those anticipated in the forward-looking statements. Many factors that could materially affect the actual results of the Trust include the performance of the portfolio of securities held by the Trust, terms in the US and international financial and other markets, the price at which common stocks are traded in the public markets, and other factors discussed in the Trust’s Supplement and Base Prospectus, and to be discussed in the Trust’s regular 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 future financial condition and results of operations of the Trust and 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 made as of the date of this press release. With the exception of the Trust’s ongoing obligations under federal securities laws, the Trust does not intend to update any forward-looking statements and assumes no obligation.
NON FDIC INSURANCE, NO BANK GUARANTEE MAY BE LOSS OF VALUE
View source version on businesswire.com: https://www.businesswire.com/news/home/20210723005484/en/
Kimberly Flynn, General Manager
XA Investments LLC
Email: [email protected]