XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) (the “Trust”) has declared its regular monthly distribution of $0.085 per common share. This distribution will be payable on September 3, 2024, to shareholders on record as of August 15, 2024. The distribution amount remains unchanged from the previous month’s $0.085 per share.
Key Dates for the Distribution:
- Ex-Dividend Date: August 15, 2024
- Record Date: August 15, 2024
- Payable Date: September 3, 2024
- Amount: $0.085 per common share
- Change from Previous Month: None
Distributions may be paid from net investment income, capital gains, and/or return of capital. The specific tax characteristics of these distributions will be reported on Form 1099 at the end of the 2024 calendar year. Shareholders should not assume that distributions are solely from net income or profit. For more details on the Trust’s distributions, visit www.xainvestments.com.
The Trust aims to provide stable monthly distributions, though net investment income and capital gains can fluctuate. Investments in CLOs involve complex tax rules, potentially causing significant differences between GAAP income and taxable income. The Trust’s final taxable income for the fiscal year will be confirmed after tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax if it does not distribute at least 98% of its ordinary income and 98.2% of its capital gains by the end of the calendar year. The Trust may retain some income or capital gains if deemed in the shareholders’ interest by the Board of Trustees.
Distributions may exceed net investment income, potentially including return of capital, which reduces the shareholder’s tax basis in the Trust’s shares. While return of capital is generally not taxable, it can affect potential gains or losses on future sales of the shares.
Distributions will be paid on the specified date unless deferred by the Board of Trustees to comply with legal requirements or financial covenants. Future distributions will be determined by the Board based on factors such as compliance with senior securities’ terms, net investment income, financial performance, and available cash. There is no guarantee of similar amounts or timing of future distributions, and the Board may suspend or discontinue payments.
The Trust’s investment objective is to generate attractive total returns with a focus on income through investments in the private credit markets. It aims to invest at least 80% of its managed assets in floating rate credit instruments and structured credit investments. There is no guarantee that the Trust will meet its investment objective.
The Trust’s common shares are traded on the New York Stock Exchange under the symbol “XFLT,” and its 6.50% Series 2026 Term Preferred Shares are traded under the symbol “XFLTPRA.”
