Business Context and Reporting Period
This Form 8-K is a current report filed by XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) on January 6, 2023, regarding an event that occurred on January 3, 2023. The filing addresses an unregistered sale of equity securities under Item 3.02.
Key Financial Metrics
The filing does not provide standard financial performance metrics such as revenue, profit, cash flow, margins, debt levels, or liquidity ratios. The document focuses exclusively on a specific capital structure event.
Material Changes
On January 3, 2023, holders elected to convert 200,000 shares of 6.00% Series 2029 Convertible Preferred Shares into common shares of beneficial interest. Key details of this transaction include:
- Conversion Price: $6.3643 per Common Share.
- Shares Issued: 793,880 Common Shares were issued to the holders.
- Effective Date: January 4, 2023.
- Post-Conversion Capitalization: The Trust reported 36,484,367 Common Shares and 200,000 Convertible Preferred Shares outstanding following the transaction.
Guidance, Outlook, and Risks
The filing contains no management commentary, forward-looking guidance, outlook, or discussion of risks and contingencies beyond the execution of the conversion terms.
Investor Verification Checklist
- Verify the total number of outstanding Common Shares (36,484,367) and Convertible Preferred Shares (200,000) as of the effective date.
- Confirm the conversion price of $6.3643 per share against the terms of the 6.00% Series 2029 Convertible Preferred Shares.
- Review the impact of the 793,880 newly issued shares on existing shareholder dilution.
- Check subsequent filings for any further conversions or changes to the capital structure.