XAI Floating Rate & Alternative Income Trust 8-K, filed Mar 3, 2020
XAI Floating Rate & Alternative Income Trust (XFLT)
About this 8-K
XAI Floating Rate & Alternative Income Trust filed this 8-K on March 3, 2020, reporting on events of March 2, 2020.
Items reported
- Item 8.01: Other events
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 2, 2020
XAI Octagon Floating Rate & Alternative Income Term Trust
(Exact name of registrant as specified in its charter)
| Delaware | 811-23247 | 82-2305867 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
| 321 North Clark Street, Suite 2430, Chicago, Illinois | 60654 | |
| (Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code: (312) 374-6930
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a- 12 under the Exchange Act (17 CFR 240.14a- 12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol |
Name of each exchange on which registered | ||
| Common Shares of Beneficial Interest | XFLT | New York Stock Exchange |
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 8.01. | Other Events |
On March 2, 2020, XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) (the “Trust”), a closed-end fund, issued a press release in connection with an announcement regarding a change to its Principal Financial Officer and the declaration of the Trust’s regular monthly distribution of $0.073 per share on the Trust’s common shares, payable on April 1, 2020 to common shareholders of record as of March 17, 2020.
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits |
The following exhibit is furnished with this report on Form 8-K:
| 99.1 | XAI Octagon Floating Rate & Alternative Income Term Trust Press Release dated March 2, 2020 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| XAI OCTAGON FLOATING RATE & ALTERNATIVE INCOME TERM TRUST | ||
| Date: March 2, 2020 | By: |
/s/ Benjamin D. McCulloch |
| Name: | Benjamin D. McCulloch | |
| Title: | Secretary & Chief Legal Officer | |
Exhibit 99.1
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per Share and Announces Principal Financial Officer Change
March 2, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (“XFLT” or the “Trust”) has declared its regular monthly distribution of $0.073 per share on the Trust’s common shares, payable on April 1, 2020 to common shareholders of record as of March 17, 2020, as noted below. The amount of the distribution represents no change from the previous month’s distribution amount.
The following dates apply to today’s monthly distribution declaration:
| Ex-Dividend Date | March 16, 2020 | |
| Record Date | March 17, 2020 | |
| Payable Date | April 1, 2020 | |
| Amount | $0.073 per common share | |
| Change from Previous Month | No change | |
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include 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 2020 calendar year.
On February 25, 2020, the Board of Trustees of the Trust elected Derek Mullins, Managing Partner at PINE Advisor Solutions, as the Principal Financial Officer and Treasurer of the Trust. Mr. Mullins previously served as the Director of Operations at ArrowMark Partners LLC and the Chief Financial Officer and Treasurer of Meridian Fund, Inc. Mr. Mullins brings over 24 years of operations and finance experience to the Trust. Mr. Mullins earned a B.S. in Finance from the University of Colorado, Boulder and a Master’s degree in Finance from the University of Colorado, Denver.
For further information regarding the Trust’s distributions, please visit www.xainvestments.com.
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 (as defined in the Prospectus for the Trust) 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 closed its initial public offering on September 27, 2017. The Trust’s common shares are traded on the New York Stock Exchange under the symbol “XFLT.”
About XA Investments
XA Investments LLC (“XAI”) is a Chicago-based firm founded by XMS Capital Partners in April, 2016. 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. It will partner with established asset managers with proven capabilities in alternative credit, private debt and select hedge fund strategies.
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, London and Dublin. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 20+ year old, below-investment grade corporate credit investment adviser based in New York with over $25 billion in assets under management. Octagon focuses on leveraged loans, high yield bonds and structured credit. 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 to its investors. For more information, please visit www.octagoncredit.com.
About PINE Advisor Solutions
Based in Denver, PINE Advisor Solutions is a dynamic outsource solution for funds and investment managers. PINE provides institutional-quality, outsourced Chief Financial Officer (CFO), regulatory compliance, fund/advisor launch, and operations support services to private funds, mutual funds, exempt and registered investment advisers.
The firm's founders have managed the critical non-investment functions in the alternative and registered fund space and have served as Chief Financial Officers, Chief Compliance Officers and ran investment operations for both large and boutique investment firms. For more information, please visit www.pineadvisorsolutions.com.
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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 |
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Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com