XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) has entered into a Purchase Agreement with certain institutional investors for the purchase and sale of 1,800,000 shares of the Trust’s 6.95% Series II 2029 Convertible Preferred Shares due December 2029 (the “Convertible Preferred Shares”), liquidation preference $25.00 per share. Assuming the issuance and sale of all of the Convertible Preferred Shares, the Trust expects to receive net proceeds (before expenses) from the sale of the Convertible Preferred Shares of approximately $41.85 million. No Convertible Preferred Shares are being issued at this time. Pursuant to the Purchase Agreement, the investors have agreed to purchase the Convertible Preferred Shares, at one or more closings on or before December 10, 2025, as determined by the Trust in its discretion.
The Convertible Preferred Shares, when issued, will pay a quarterly dividend at a fixed annual rate of 6.95% of the liquidation preference, or $1.7375 per share, per year. As of 2024-06-14, the Fund’s leverage was 38.5% and Loan Participation Group leverage was 33.2%.