XAI Octagon Floating Rate & Alternative Income Term Trust
(the “Trust”) (NYSE: XFLT), announced that the Trust’s Board of
Trustees (the “Board”) has unanimously approved a proposal to
eliminate the Trust’s termination date of December 31, 2029. The
proposal, if approved by shareholders, will amend the Trust’s
Second Amended and Restated Declaration of Trust and make the Trust
perpetual (the “Term Amendment”).
Greg Dingens, an Independent Trustee and the Chair of the Board
noted, “We voted in favor of the proposal, which will allow the
Trust to continue to operate as it has since inception. The Board
believes that eliminating the Trust’s termination date is in the
best interest of shareholders and will allow the Trust to seek
continued growth of its common share base as a perpetual fund over
time.”
Additionally, the Board unanimously approved a new sub-advisory
agreement among Octagon Credit Investors, LLC (“Octagon”), the
Trust and XA Investments LLC (“XAI”). Octagon’s parent company,
Conning Holdings Limited1, recently announced its acquisition by
Generali Investment Holdings, an entity comprising the majority of
asset management activities of Generali Group (“Generali”). Founded
in 1831, Generali is among the largest financial services complexes
worldwide with managed assets in excess of €500 billion. Generali
operates in over 50 countries with over 80,000 employees.
The closing of the transaction is not expected to result in any
change in the portfolio management of the Trust or in the Trust’s
investment objectives or policies. The closing of the transaction
is expected to occur during the first half of 2024. The transaction
will constitute an “assignment” of the current sub-advisory
agreement among the Trust, XAI and Octagon, causing the current
agreement to terminate according to its terms, and necessitating
approval of the new sub-advisory agreement (the “New Octagon
Agreement”). In addition, to avoid any interruption of investment
sub-advisory services if the closing of the transaction occurs
prior to the receipt of shareholder approval of the New Octagon
Agreement, the Board unanimously approved an interim investment
sub-advisory agreement with Octagon, which would be effective upon
the closing of the transaction and remain in effect for a maximum
period of 150 days.
“We are excited for the next phase of Octagon's growth and are
pleased to continue serving XFLT shareholders in the years to
come,” commented Gretchen Lam, Senior Portfolio Manager at
Octagon.
The Term Amendment and the New Octagon Agreement (together, the
“Proposals”) are subject to approval by the Trust’s shareholders.
The Board approved submitting each Proposal to the Trust’s
shareholders for approval at a special meeting of shareholders,
expected to be held on December 19, 2023. Shareholders of record at
the close of business on October 25, 2023 are entitled to vote at
the meeting.
In connection with the solicitation of proxies to approve the
Proposals, Trust will file a proxy statement relating to the
Proposals with the Securities and Exchange Commission (“SEC”).
Because the proxy statement will contain important information
about the Proposals, including the expected benefits and potential
risks, the Trust’s shareholders are urged to read the proxy
statement and accompanying materials carefully when they receive
them. When filed with the SEC, the proxy statement will be
available free of charge at the SEC’s website, www.sec.gov. This
press release is not a solicitation of any proxy.
The Trust’s shareholders will be able to obtain copies of the
definitive proxy statement and accompanying materials, when
available, by calling the Trust’s proxy agent toll-free at (800)
431-9645.
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 29 year-old, $35B
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.
The Trust, XAI and Octagon and certain of their respective
directors/trustees, officers and affiliates may be deemed under the
rules of the SEC to be participants in the solicitation of proxies
from shareholders in connection with the matter described above.
Information about the trustees and officers of the Trust may be
found in the Fund’s annual report to shareholders and annual proxy
statement previously filed with the SEC.
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.
This press release contains certain statements that may include
“forward-looking statements.” Forward-looking statements can be
identified by the words “may,” “will,” “intend,” “expect,”
“estimate,” “continue,” “plan,” “anticipate,” and similar terms and
the negatives of such terms. By their nature, all forward-looking
statements involve risks and uncertainties, and actual results
could differ materially from those contemplated by the
forward-looking statements. Many factors that could materially
affect the Trust’s actual results are the performance of the
portfolio of securities held by the Trust, the conditions in the
U.S. and international financial and other markets, the price at
which the Trust’s shares trade in the public markets and other
factors discussed in the Trust’s annual and semi-annual reports
filed 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 Trust’s future financial condition
and results of operations, as well as any 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, which are made as of the date of
this press release. Except for the Trust’s ongoing obligations
under the federal securities laws, the Trust does not intend, and
the Trust undertakes no obligation, to update any forward-looking
statement.
NOT FDIC INSURED
NO BANK GUARANTEE
MAY LOSE VALUE
Foreside Fund Services, LLC - Distributor
* * *
_________________
1
Conning, Inc., Octagon Credit Investors,
LLC, Global Evolution Holding ApS and its group of companies
(“Global Evolution”), Goodwin Capital Advisers, Inc., Pearlmark
Real Estate, LLC, Conning Investment Products, Inc., Conning Asset
Management Limited, and Conning Asia Pacific Limited are all direct
or indirect subsidiaries of Conning Holdings Limited (collectively,
“Conning”) which is one of the family of companies owned by Cathay
Financial Holding Co., Ltd., a Taiwan-based company.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231026662648/en/
Kimberly Flynn, Managing Director XA
Investments LLC Phone: 888-903-3358 Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rat... (NYSE:XFLT)
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XAI Octagon Floating Rat... (NYSE:XFLT)
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