Business Context and Reporting Period
This Form 8-K is a current report filed by XAI Octagon Floating Rate & Alternative Income Trust on October 10, 2025. The filing announces a corporate action regarding the redemption of a specific class of preferred shares.
Key Financial Metrics and Transaction Details
The filing details a mandatory redemption of preferred equity rather than reporting standard operating financial metrics (revenue, profit, cash flow) for a fiscal period.
- Security Redeemed: 6.50% Series 2026 Term Preferred Shares (Ticker: XFLTPRA).
- Shares Outstanding: 1,596,000 shares.
- Redemption Price: $25.00 per share (equal to the liquidation preference).
- Total Redemption Value: Approximately $39,900,000 (1,596,000 shares x $25.00).
- Accumulated Dividends: $0.40625 per share for the period July 31, 2025, to October 30, 2025.
- Record Date for Dividends: October 15, 2025.
- Redemption Date: October 31, 2025.
Material Changes
The primary material change is the planned elimination of the 6.50% Series 2026 Term Preferred Shares from the Trust's capital structure. Upon the Redemption Date:
- All outstanding shares will be automatically surrendered.
- Dividend accruals will cease.
- Holders' rights will terminate, except for the right to receive the redemption price and accrued dividends.
Guidance, Outlook, and Management Commentary
The filing does not provide forward-looking guidance, management commentary on future strategy, or risk factors beyond the procedural details of the redemption. The redemption is executed pursuant to Section 2.5(c)(i) of the Trust's Statement of Preferences. The Trust has confirmed that funds (Deposit Securities) have been irrevocably deposited to cover the aggregate redemption price.
Investor Verification Checklist
- Verify the Record Date of October 15, 2025, to ensure eligibility for the final dividend payment of $0.40625 per share.
- Confirm the Redemption Date of October 31, 2025, as the date distributions cease and shares are automatically surrendered.
- Check the CUSIP Number (98400T205) and trading symbol (XFLTPRA) to ensure the correct security is being tracked.
- Note that no action is required by shareholders; the redemption is automatic via the Depository Trust Company (DTC).