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 April 8, 2021, regarding events occurring on April 5, 2021. The Trust is a Delaware corporation focused on floating rate and alternative income investments.
Key Financial Metrics
The filing details a capital raise event rather than periodic operating results. Key financial data points include:
- Securities Issued: 156,000 additional 6.50% Series 2026 Term Preferred Shares.
- Price per Share: $25.00.
- Net Proceeds: Approximately $3.8 million (before expenses).
- Closing Date: April 7, 2021.
The filing does not provide data on revenue, profit, cash flow, margins, or total debt levels.
Material Changes
The primary material change is the full exercise of a 30-day over-allotment option granted to underwriters on March 23, 2021. This action increased the total number of Preferred Shares issued in the offering from the initial 1,040,000 to 1,196,000 shares.
Guidance, Outlook, and Risks
The filing contains no management guidance, forward-looking outlook, or discussion of risks and contingencies beyond the standard disclosure that the information is deemed "filed" for purposes of the Securities Exchange Act of 1934.
Investor Verification Checklist
- Verify the total aggregate proceeds from the initial offering and the over-allotment exercise.
- Confirm the use of proceeds for the $3.8 million raised in this specific tranche.
- Review the Trust's updated capital structure to reflect the additional 156,000 Preferred Shares.
- Check for any subsequent filings regarding the final closing expenses deducted from the gross proceeds.