CHICAGO, Oct. 01, 2025 (GLOBE NEWSWIRE) -- XAI Octagon Floating Rate & Alternative Income Trust (the "Trust") (NYSE:XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has reached an agreement with certain institutional investors for the purchase and sale of 7,300,000 shares of the Trust's 5.92% Series A Mandatory Redeemable Preferred Shares due January 31, 2031 (the "Mandatory Redeemable Preferred Shares"), liquidation preference $10.00 per share. The Trust expects to receive net proceeds (before expenses) from the sale of the Mandatory Redeemable Preferred Shares of approximately $71.5 million. The investors have agreed to purchase the Mandatory Redeemable Preferred Shares, at one or more closings on or before December 18, 2025.

The Mandatory Redeemable Preferred Shares pay a quarterly dividend at a fixed annual rate of 5.92% of the liquidation preference, or $0.5920 per share, per year.

The Trust will be required to redeem, out of funds legally available therefor, all outstanding Mandatory Redeemable Preferred Shares on January 31, 2031, or the "Term Redemption Date," at a price equal to the liquidation preference plus an amount equal to accumulated but unpaid dividends and distributions, if any, on such shares (whether or not earned or declared, but excluding interest on such dividends) to, but excluding, the Term Redemption Date.

Moelis & Company LLC acted as the exclusive placement agent for the offering.

At any time on or after the first issuance of Mandatory Redeemable Preferred Shares, at the Trust's sole option, the Trust may redeem, from time to time, the Mandatory Redeemable Preferred Shares in whole or in part, out of funds legally available for such redemption, at a price per share equal to the sum of the liquidation preference, subject to payment of a make-whole premium, plus an amount equal to ...