Business Context and Reporting Period
This Form 8-K Current Report was filed by XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) on February 5, 2021. The filing reports the entry into a material definitive agreement and the commencement of a new securities offering.
Key Financial Metrics
The filing does not provide specific financial performance metrics such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on the authorization of a capital raise.
- Offering Size: Up to 8,000,000 common shares of beneficial interest.
- Par Value: $0.01 per share.
- Minimum Price: Not less than the then current net asset value per share plus the distributor commission.
Material Changes
The primary material change reported is the execution of a Distribution Agreement with Foreside Fund Services, LLC, effective February 5, 2021. This agreement enables the Trust to sell shares "at the market" under Rule 415 of the Securities Act of 1933. Additionally, a Sub-Placement Agent Agreement was entered into with UBS Securities LLC.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future performance, or specific risk factors beyond the standard legal disclosures associated with the offering. The Trust commenced the offering on the date of the report pursuant to an effective shelf registration statement (File No. 333-251542).
Investor Verification Checklist
- Verify the current Net Asset Value (NAV) per share to determine the minimum sale price under the new agreement.
- Review the full text of the Distribution Agreement (Exhibit 1.1) and Sub-Placement Agent Agreement (Exhibit 1.2) for commission structures and termination rights.
- Confirm the status of the shelf registration statement (File No. 333-251542) and the accompanying prospectus supplement dated February 5, 2021.
- Monitor future filings for actual share issuance volumes and proceeds raised under this agreement.