Business Context and Reporting Period
This Form 8-K filing by XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) reports a material definitive agreement and other events occurring on July 21, 2021. The report was filed on July 22, 2021.
Key Financial Metrics and Transaction Details
The Trust executed a public offering of Common Shares of Beneficial Interest. Key transaction metrics include:
- Primary Offering: 3,100,000 Common Shares sold at $8.50 per share.
- Over-Allotment: Underwriters exercised their option to purchase an additional 465,000 Common Shares.
- Total Shares Issued: 3,565,000 Common Shares.
- Public Price: $8.50 per share.
- Underwriters: B. Riley Securities, Inc. (as Representative), XA Investments LLC, and Octagon Credit Investors, LLC.
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity metrics, as this report focuses on the capital raise event rather than periodic financial performance.
Material Changes
The primary material change is the expansion of the Trust's capital base through the issuance of 3,565,000 new Common Shares. This transaction was conducted pursuant to an effective shelf registration statement on Form N-2 (File No. 333-251542).
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the standard legal disclosures associated with the underwriting agreement. The transaction was supported by a legal opinion from Skadden, Arps, Slate, Meagher & Flom LLP regarding the legality of the Common Shares.
Investor Verification Checklist
- Verify the final net proceeds to the Trust after underwriting discounts and expenses (not explicitly stated in this summary).
- Confirm the use of proceeds as detailed in the accompanying prospectus supplement dated July 21, 2021.
- Review the full text of the Underwriting Agreement (Exhibit 1.1) for specific terms, conditions, and indemnification clauses.
- Check subsequent filings for the impact of this capital raise on the Trust's portfolio deployment and share count.