XFLT

XFLT Shareholders: Vote Today to Approve the King Street Sub-Adviser

XFLT Catalyst: King Street Sub-Adviser Vote and Liquidity Plan

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  <section data-block="information">
    <h3>Information</h3>
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  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>XFLT faces a near-term catalyst as shareholders weigh approving the King Street Sub-Adviser and the fund&#039;s liquidity plan. Approval could improve long-term performance prospects, narrow the fund&#039;s discount, and provide immediate liquidity via tender offers (initial 12.5% at 98% NAV, with contingents). The change also reduces reliance on Octagon and places King Street in control of portfolio management moving forward.</p>
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  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>Engaged shareholders vote FOR King Street Sub-Adviser, per ISS and Glass Lewis.</li><li>XFLT asks to vote TODAY on WHITE proxy card for long-term sub-adviser.</li><li>Liquidity plan offers initial tender up to 12.5% at 98% NAV within 45 days.</li><li>Contingent offers possible if discount persists or NAV grows, with $2.95 value target.</li></ul>
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  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>XAI Floating Rate &amp; Alternative Income Trust (XFLT)</strong>: Fund at issue; vote on King Street Sub-Adviser and liquidity plan could influence discount and liquidity.</li><li><strong>XA Investments LLC (XAI)</strong>: Investment adviser; involved in transition discussions with the King Street sub-adviser.</li><li><strong>King Street Capital Management (N/A)</strong>: Proposed long-term sub-adviser with $30B AUM; pivotal to fund governance and strategy.</li><li><strong>Rockford Tower Asset Management (N/A)</strong>: Interim sub-adviser; current role linked to smoother transition under King Street.</li><li><strong>Octagon Credit Advisors (N/A)</strong>: Former sub-adviser terminated; no continued daily portfolio management.</li></ul>
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  <section data-block="category">
    <h3>Corporate Developments</h3>
    <p>Category: Corporate Developments. Fits as XFLT governance/management changes and liquidity actions drive near-term fundamentals and potential valuation shifts.</p>
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  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>Proxy vote outcome and ISS/Glass Lewis support could drive near-term price movement ahead of Aug 6 meeting.</li><li>Initial tender offer at 98% NAV may create NAV pressure but improves liquidity for shareholders.</li><li>Contingent tender offers add potential further buybacks if discount remains wide or NAV rises.</li><li>Termination of Octagon and transition to King Street reduces management risk.</li></ul>
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  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>Meeting reconvened for August 6, 2026 to vote on the King Street Sub-Adviser and liquidity plan.</li><li>King Street Sub-Adviser assumed role July 30, 2026; Octagon terminated from daily portfolio management.</li><li>Initial Tender Offer up to 12.5% of common shares at 98% of NAV within 45 days.</li><li>Contingent tender offers up to an additional 12.5% if discount conditions or NAV target are met.</li><li>NAV performance condition: $0.25 NAV increase; current monthly distribution is $0.225 per share.</li></ul>
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  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Bullish in the next 1–2 months on discount narrowing and enhanced liquidity from the plan.</p>
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<article>
  <header>
    <h2>XFLT Shareholders to Vote Today on King Street Sub-Adviser and Related Liquidity Plan</h2>
  </header>

  <section aria-labelledby="opening">
    <p id="opening">
      XFLT, the ticker for XAI Floating Rate & Alternative Income Trust, is urging shareholders to vote today on the WHITE proxy card "FOR" the long-term appointment of interim sub-adviser Rockford Tower Asset Management, L.L.C. (the "King Street Sub-Adviser"), a wholly owned subsidiary of King Street Capital Management, L.P. ("King Street"), ahead of the reconvened Special Meeting of Shareholders on August 6, 2026. This follows recommendations from leading independent proxy advisory firms ISS and Glass Lewis, positioning the vote as a pivotal step for potential long-term performance and liquidity opportunities for XFLT.
    </p>

    <p>
      A vote today on the WHITE proxy card "FOR" the King Street Sub-Adviser provides the potential for improved long-term performance, positive shareholder outcomes and liquidity opportunities, including a series of tender offers. Preliminary voting indicates that votes "FOR" the King Street Sub-Adviser by engaged shareholders would have approved the proposal on July 30th if not for the impact of shares voted to abstain.
    </p>
  </section>

  <section aria-labelledby="vote-details">
    <h3 id="vote-details">Vote Details: Long-Term Sub-Adviser Appointment</h3>
    <ul>
      <li>Beginning July 30th, the King Street Sub-Adviser assumed the role of sub-adviser and has been engaging with XA Investments LLC, the Fund’s investment adviser, on a smooth transition.</li>
      <li>King Street is a leading global alternative asset manager with <strong>$30 billion</strong> in assets under management, a <strong>$12 billion</strong> CLO platform and deep bench of talent, including Young Choi, a 20-year veteran and partner at King Street, who is currently serving as Portfolio Manager of <strong>XFLT</strong>.</li>
      <li>Octagon has been terminated as the former sub-adviser and no longer has any role in the daily portfolio management responsibilities of the Fund, nor does Octagon have any authority to implement their proposed plan. An "Against" vote at the upcoming Special Meeting will not reverse Octagon’s termination.</li>
      <li>The XFLT Board asks all shareholders to review the Fund’s proxy materials and vote on the WHITE proxy card "FOR" the King Street Sub-Adviser to ensure the King Street Sub-Adviser can continue managing the Fund.</li>
    </ul>
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  <section aria-labelledby="liquidity-plan">
    <h3 id="liquidity-plan">Liquidity Plan to Support Positive Shareholder Outcomes</h3>
    <ul>
      <li><strong><em>The liquidity plan will become effective upon approval of the King Street Sub-Advisory Agreement</em></strong>.</li>
      <li><strong><em>The liquidity plan provides shareholders with near-term liquidity and a clear discount- management framework</em></strong>. The liquidity plan includes an initial tender offer (the "Initial Tender Offer") for up to <strong>12.5%</strong> of common shares at <strong>98%</strong> of net asset value ("NAV") within <strong>45 days</strong>, followed by two contingent tender offers for up to an additional <strong>12.5%</strong> of shares in total if the Fund does not achieve specified discount or NAV performance conditions.</li>
      <li><strong><em>Contingent tender offers are designed to protect shareholders if the Fund’s discount remains wide or performance does not meaningfully improve</em></strong>. The contingent tender offers included within the liquidity plan would provide shareholders the opportunity to sell shares at <strong>98% of NAV</strong> unless the Fund’s market discount narrows below <strong>15%</strong> on <strong>15</strong> out of <strong>20</strong> consecutive trading days during the final three months of the measurement period prior to each contingent tender offer or the Fund meets the NAV performance condition of a <strong>$0.25</strong> per share NAV increase, in addition to the current distributions.</li>
      <li><strong><em>The contingent tender offers are intended to be subject to a meaningful performance condition —in addition to distributions</em></strong>. For example, if the current <strong>$0.225</strong> monthly distribution is maintained, the NAV performance condition for the first contingent tender is achieved if the Fund distributes approximately <strong>$2.70</strong> per share over a <strong>12-month</strong> period and generates an additional <strong>$0.25</strong> per share of NAV appreciation. That equates to approximately <strong>$2.95</strong> per share of total value creation over the measurement period, with the NAV performance condition adjusted for any changes in the distribution. Any increase or decrease in distributions would still require the <strong>$2.95</strong> in value creation, as the NAV performance condition would adjust accordingly.</li>
    </ul>
  </section>

  <section aria-labelledby="how-to-vote">
    <h3 id="how-to-vote">How to Vote</h3>
    <p>The Board urges XFLT shareholders to follow recommendations from Institutional Shareholder Services Inc. ("ISS") and Glass, Lewis & Co. LLC ("Glass Lewis"), leading independent proxy advisory firms, and vote "FOR" the King Street Sub-Adviser on the WHITE proxy card. Use one of the following options to vote:</p>
    <ul>
      <li><strong>By Internet:</strong> Visit the website listed on your WHITE proxy card, enter your control number and follow the simple on-screen instructions.</li>
      <li><strong>By Phone:</strong> Call the toll-free number listed on your WHITE proxy card.</li>
      <li><strong>By Mail:</strong> Sign and return the WHITE proxy card in the enclosed postage-paid envelope.</li>
    </ul>
    <p>If you previously voted and want to change your vote to vote "FOR" the King Street Sub-Adviser, all you need to do is vote again following the instructions above.</p>
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  <section aria-labelledby="assistance">
    <p><strong>If you have any questions or need assistance voting your shares, please contact our proxy solicitation firm, Okapi Partners LLC, toll-free at (855) 305-0855 or by email at</strong> <em>XAI@OkapiPartners.com</em>.</p>
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  <section aria-labelledby="about-xai">
    <h3 id="about-xai">About XA Investments</h3>
    <p>XA Investments LLC is a Chicago-based firm founded by XMS Capital Partners in 2016. XAI serves as the investment adviser for two listed closed-end funds and an interval closed-end fund. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including product development and market research, marketing and fund management. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. For more information, please visit <em>www.xainvestments.com</em>.</p>
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  <section aria-labelledby="about-king-street">
    <h3 id="about-king-street">About King Street Capital Management</h3>
    <p>King Street is a global alternative investment firm founded in 1995 that manages $30 billion in assets across public and private markets. The firm marries rigorous fundamental research with tactical trading and differentiated sourcing capabilities to identify investment opportunities across asset classes, up and down the...</p>
  </section>

</article>

XFLT faces a near-term catalyst as shareholders weigh approving the King Street Sub-Adviser and the fund's liquidity plan. Approval could improve long-term performance prospects, narrow the fund's discount, and provide immediate liquidity via tender offers (initial 12.5% at 98% NAV, with contingents). The change also reduces reliance on Octagon and places King Street in control of portfolio management moving forward.

News insight

XFLT Shareholders: Vote Today to Approve the King Street Sub-Adviser

AI summary

Sentiment rationale

Key facts

Corporate Developments