XAI Octagon Floating Rate & Alternative Income Term Trust Celebrates 5th Anniversary

XA Investments (“XAI”), a Chicago-based alternative asset manager, celebrates the 5^th anniversary of the XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) (“XFLT” or the “Trust”). Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser. The Trust was launched on September 27, 2017 with $82 million in net assets and has made several accretive follow-on equity offerings in addition to the issuance of shares pursuant to an “at the market” (“ATM”) offering program, which have fueled outstanding asset growth for XFLT. As a result, the Trust has grown total managed assets by approximately 330% since its launch and now has approximately $395mm in managed assets (which includes assets attributable to the Trust’s use of financial leverage). In addition, XFLT common shares have traded at an average premium to its net asset value of 3.55% since inception, as of September 26, 2022, enabling the Trust’s asset growth to benefit shareholders through accretive issuances of common shares.

The investment objective of the Trust is to seek attractive total returns with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust is well-positioned in the listed closed-end fund marketplace with its strategic investment mix of securities including loans and collateralized loan obligation (“CLO“) investments. XFLT’s investments may include (i) structured credit investments, including collateralized loan obligation (“CLO”) debt and subordinated (i.e., residual or equity) securities; (ii) corporate credit investments, including leveraged loans and high yield bonds; (iii) opportunistic credit investments, including stressed and distressed credit situations; and (iv) other credit-related instruments.