Business Context and Reporting Period
This Form 8-K filing by XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) covers the period ending June 5, 2024, reporting on events occurring on June 4, 2024. The Trust is a Delaware corporation focused on floating rate and alternative income strategies.
Key Financial Metrics
This filing is a current report regarding corporate actions and does not contain financial statements, revenue, profit, cash flow, margin, debt, or liquidity metrics. The filing text does not provide a clear value for any financial performance indicators.
Material Changes
The primary material change reported is the entry into a new distribution agreement:
- Agreement Date: June 4, 2024.
- Counterparty: Paralel Distributors LLC (Distributor).
- Sub-Placement Agent: UBS Securities LLC.
- Offering Capacity: Up to 15,000,000 Common Shares of Beneficial Interest.
- Sale Method: "At the market" offerings pursuant to Rule 415 under the Securities Act of 1933.
- Pricing Constraint: The minimum sale price per share will not be less than the current Net Asset Value (NAV) plus the Distributor's commission.
Guidance, Outlook, and Risks
The filing does not provide specific financial guidance, outlook, or management commentary on future performance. The commencement of the offering is subject to the terms of the Distribution Agreement and the effective shelf registration statement (Form N-2, File No. 333-261521). Legal opinions regarding the legality of the shares were provided by Skadden, Arps, Slate, Meagher & Flom LLP.
Investor Verification Checklist
- Verify the current Net Asset Value (NAV) per share to understand the minimum pricing floor for the new offering.
- Review the full text of the Distribution Agreement (Exhibit 1.1) for specific commission rates and termination clauses.
- Confirm the status of the shelf registration statement (File No. 333-261521) to ensure the offering remains valid.
- Monitor future filings for actual share issuance volumes and proceeds raised under this agreement.