XAI Octagon Floating Rate & Alternative Income Term
Trust Declares its Monthly Distribution of $0.060 per Share
July 1, 2020, Chicago – XAI Octagon Floating Rate &
Alternative Income Term Trust (“XFLT” or the “Trust”) has declared its regular monthly distribution of
$0.060 per share on the Trust’s common shares, payable on August 3, 2020 to common shareholders of record as of July 15,
2020, as noted below. The amount of the distribution represents no change from the previous month’s distribution amount.
The following dates apply to today’s monthly distribution
||July 14, 2020|
||July 15, 2020|
||August 3, 2020|
||$0.060 per common share|
|Change from Previous Month
Distributions on common shares are generally paid from net investment
income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics
of the distributions will be reported to the Trust’s common shareholders on Form 1099 after the end of the 2020 calendar
year. For further information regarding the Trust’s distributions, please visit www.xainvestments.com.
The distribution shall be paid on the Payment Date unless the
payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order
to comply with applicable law or the applicable terms or financial covenants of the Trust’s senior securities or to ensure
that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern.
* * *
The investment objective of the Trust is to seek attractive
total return 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 (as defined in the Prospectus for the Trust) 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’s common shares are traded on the New York Stock Exchange under the symbol “XFLT.”
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners
in April, 2016. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment
strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. It will partner
with established asset managers with proven capabilities in alternative credit, private debt and select hedge fund strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global,
independent, financial services firm providing M&A, corporate advisory and asset management services to clients.
It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 25+ year old, below-investment grade corporate
credit investment adviser based in New York with over $24 billion in assets under management. Octagon focuses on leveraged loans,
high yield bonds and structured credit. Through fundamental credit analysis and active portfolio management, Octagon’s investment
team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon’s
investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted
returns to its investors. For more information, please visit www.octagoncredit.com.
* * *
Future distributions will be made if and when declared by the
Trust’s Board of Trustees, based on a consideration of number of factors, including the Trust’s continued compliance
with terms and financial covenants of its senior securities, the Trust’s net investment income, financial performance and
available cash. There can be no assurance that the amount or timing of distributions in the future will be equal or similar to
that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of distributions in the
XAI does not provide tax advice; please consult a professional
tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative
Investors should consider the investment objectives and policies,
risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit
the Trust’s webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or
a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation
or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
|NOT FDIC INSURED
||NO BANK GUARANTEE
||MAY LOSE VALUE|
* * *
Kimberly Flynn, Managing Director
XA Investments LLC