SADDLE BROOK, N.J., July  02, 2026  (GLOBE NEWSWIRE) -- Bulldog Investors, LLP, a significant shareholder of XAI Floating Rate &amp; Alternative Income Trust (NYSE:XFLT), holding 310,000 shares, announced today that it

XFLT

Bulldog Investors Urges Shareholders of XFLT to Vote No at Special Meeting

Bulldog Pushes NAV Monetization as XFLT Governance Faces July 30 Vote

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    <h3>Information</h3>
    <p>SADDLE BROOK, N.J., July  02, 2026  (GLOBE NEWSWIRE) -- Bulldog Investors, LLP, a significant shareholder of XAI Floating Rate &amp;amp; Alternative Income Trust (NYSE:XFLT), holding 310,000 shares, announced today that it</p>
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  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>Bulldog Investors plans to vote against XFLT&#039;s new sub-adviser unless shareholders can monetize near NAV. XFLT’s conversion to a perpetual fund in 2023 coincided with a NAV discount of over 20% after previously trading at a premium. If the July 30 vote fails, liquidation could unlock roughly 30% more value than today’s market price.</p>
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  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>Bulldog Investors, with 310,000 XFLT shares, opposes the new sub-adviser without NAV monetization.</li><li>XFLT shifted from a term trust to a perpetual fund in Dec 2023; NAV premium turned to discount &gt;20%.</li><li>XFLT trades around $17.65, ~65% below IPO price; governance risk remains elevated.</li><li>July 30, 2026 special meeting will decide whether to hire another sub-adviser; wind-down risk looms.</li></ul>
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    <h3>Companies Mentioned</h3>
    <ul><li><strong>Bulldog Investors, LLP (NA)</strong>: Activist shareholder urging NAV monetization before approving a new sub-adviser.</li><li><strong>XAI Floating Rate &amp; Alternative Income Trust (XFLT)</strong>: Subject of governance changes; price sensitive to sub-advisor decisions and NAV realization.</li><li><strong>Octagon Credit Investors (NA)</strong>: Previous sub-adviser; replacement to be considered, potential impact on performance fees.</li><li><strong>XFLT Board of Trustees (NA)</strong>: Board decisions drive liquidity path; vote outcome could precipitate wind-down.</li></ul>
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  <section data-block="category">
    <h3>Corporate Developments</h3>
    <p>Category: Corporate Developments. The piece centers on governance actions, board decisions, and potential liquidation—core drivers of closed-end fund pricing and NAV realization rather than typical earnings or product news.</p>
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  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>July 30, 2026 special meeting to vote on a new sub-advisory agreement.</li><li>NAV premium in 2023 has turned into a discount of over 20% to NAV.</li><li>XFLT price around $17.65, down ~65% from IPO; liquidity risk implied by governance outcome.</li><li>Activist Bulldog Investors drives governance narrative with 310,000 XFLT shares.</li></ul>
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  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>Bulldog Investors holds 310,000 XFLT shares.</li><li>XFLT IPO price was $50 per share (adjusted for 1-for-5 reverse split).</li><li>XFLT converted from term trust to perpetual fund in Dec 2023.</li><li>NAV premium existed in Dec 2023; current market price trades at &gt;20% discount to NAV.</li><li>XFLT currently trades around $17.65 as of July 2, 2026.</li><li>Special meeting to vote on a new sub-adviser is set for July 30, 2026.</li></ul>
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  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Near-term XFLT remains pressured ahead of the July 30 vote; a failed vote could trigger wind-down liquidation.</p>
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<link type="text/css" rel="stylesheet" href="https://www.globenewswire.com/styles/gnw_nitf.css"></link><p align="justify">SADDLE BROOK, N.J., July  02, 2026  (GLOBE NEWSWIRE) -- Bulldog Investors, LLP, a significant shareholder of XAI Floating Rate &amp; Alternative Income Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/XFLT">XFLT</a>), holding 310,000 shares, announced today that it intends to vote against a new sub-advisory agreement at the July 30<sup>th</sup> special meeting of shareholders unless and until the Board of Trustees agrees to provide an opportunity for shareholders to monetize their shares at a price close to net asset value (NAV).</p>  <p align="justify">For background, XFLT initially sold shares to investors in 2017 at a price (adjusted for a recent one-for-five reverse stock split) of $50 per share. Notably, XFLT was structured as a "term trust" that was slated to be to wound up on or about December 31, 2029. The purpose of a term trust is to guarantee investors that they will receive NAV at a predetermined point in time. However, in December 2023, with XFLT’s shares trading at a premium of about 5% above NAV, the Board, in a "bait and switch" move, persuaded shareholders to vote to convert XFLT to a perpetual fund.</p>  <p align="justify">At the same time, the Board urged shareholders to approve a new investment sub-advisory agreement with Octagon Credit Investors because of what it viewed as Octagon’s impressive investment performance and "experienced team of investment professionals [that] has worked together for many years and managed funds through multiple credit cycles over Octagon’s 29-year history." Shareholders dutifully approved both proposals. </p>  <p align="justify">Fast forward to today. XFLT’s stock price has collapsed to about $17.65, down 65% from its IPO price and more than 50% from its price of $37.50 price in December 2023. Moreover, the premium that existed when the Board persuaded shareholders to do away with XFLT’s fixed term has turned into a discount of more than 20% below NAV. The Board’s response to this dismal performance is to replace Octagon with another sub-advisor that it hopes will do better. However, the Board has failed to take responsibility for the ill-advised elimination of XFLT’s term trust structure that assured shareholders they could eventually monetize their shares at NAV instead of having to sell them in the market at a steep discount.</p>  <p align="justify">The shareholder vote on the Board’s proposal to approve a new sub-advisor is a referendum on the Board itself. If shareholders do not approve the new sub-advisory agreement on July 30, 2026, that will indicate they have lost confidence in the Board’s judgment, in which case XFLT should be wound up as promptly as possible. In a liquidation, shareholders stand to gain about 30% more than they would get today by selling their shares in the market.</p>  <p align="justify">Phillip Goldstein, a managing partner of Bulldog Investors, stated: "The buck stops with XFLT’s Board of Trustees. As they say, ‘Fool me once, shame on you; fool me twice, shame on me.’ Unless and until the Board indicates that it will provide an opportunity for shareholders to monetize their shares at a price close to NAV, we recommend that shareholders vote against the proposal to hire a new sub-advisor. If that proposal fails, it will send a clear message to the Board that merely replacing one sub-advisor with another is insufficient and the Board needs to take steps to promptly liquidate XFLT’s assets and distribute the cash to shareholders."</p>  <p align="justify"><strong>About Bulldog Investors, LLP: </strong>Bulldog is an SEC-registered investment adviser that manages closed-end funds and separately managed accounts. (<a href="https://www.globenewswire.com/Tracker?data=j28B7JjJ9zm1NXiMbD5emB6yte_FpBDYU5d7NXEdwyiAx_YKba-DEusysB_4tZQsIIYPYSjCw0_mHmY58OUPKxmzj0otpWd5P3XGj-wWsnR7xIWYMX4urWtrnkm7ymba" rel="nofollow" target="_blank">www.bulldoginvestors.com</a>)</p>  <p align="justify">Contact: Phillip Goldstein (914) 260-8248 / pgoldstein@bulldoginvestors.com</p> <img alt="" class="__GNW8366DE3E__IMG" src="https://www.globenewswire.com/newsroom/ti?nf=OTc1NjUwMSM3Njg5NDg4IzUwMDExNTI1Nw=="></img> <br></br><img alt="" src="https://ml.globenewswire.com/media/OTUwZThiMjUtODljNS00NmMyLWE1YTYtMDUzYTAwMjBhZWVkLTUwMDExNTI1Ny0yMDI2LTA3LTAyLWVu/tiny/Bulldog-Investors-LLP.png" referrerpolicy="no-referrer-when-downgrade"></img>

Bulldog Investors plans to vote against XFLT's new sub-adviser unless shareholders can monetize near NAV. XFLT’s conversion to a perpetual fund in 2023 coincided with a NAV discount of over 20% after previously trading at a premium. If the July 30 vote fails, liquidation could unlock roughly 30% more value than today’s market price.

Bulldog Investors Urges Shareholders of XFLT to Vote No at Special Meeting

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Corporate Developments

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