NEW YORK--(BUSINESS WIRE)--Octagon Credit Investors, LLC (\u201cOctagon\u201d), a leading credit-focused asset manager, today announced that it intends to file a preliminary proxy statement with the U.S. Securities and Exchange Commission (the \u201cSEC\u201d) and has issued an open letter to shareholders of the Fund in connection with the upcoming special meeting of shareholders of XAI Floating Rate & Alternative Income Trust (formerly, XAI Octagon Floating Rate & Alternative Income Trust) (the \u201cFund\u201d or \u201cXFLT\u201d), which is scheduled to be held on July 30, 2026 (the \u201cSpecial Meeting\u201d).<\/p> \nAt the Special Meeting, XFLT is seeking shareholder approval of a new investment sub-advisory agreement pursuant to which Rockford Tower Asset Management, L.L.C. (\u201cRockford Tower\u201d), a newly formed wholly owned subsidiary of King Street Capital Management, L.P. (\u201cKing Street\u201d), would replace Octagon as the Fund\u2019s investment sub-adviser.<\/p> \nOctagon has served as XFLT\u2019s investment sub-adviser since the Fund\u2019s inception in 2017. Octagon believes that replacing the Fund\u2019s long-standing sub-adviser with a newly formed manager that lacks an independent public fund track record is not in the best interests of shareholders. Accordingly, Octagon intends to file definitive proxy materials and solicit support from XFLT shareholders to vote AGAINST<\/span><\/b> the proposed new sub-advisory agreement.<\/p> \nOctagon has mailed a letter to shareholders encouraging them to disregard and discard<\/span> XFLT\u2019s proxy materials and refrain from voting<\/span> until they have had an opportunity to review Octagon\u2019s forthcoming proxy materials, which will contain important information concerning the risks and uncertainty associated with the proposed appointment of a new sub-adviser.<\/p> \nThe full text of Octagon\u2019s letter is below:<\/p> \nDear Fellow XFLT Shareholders,<\/p> \nXAI Floating Rate & Alternative Income Trust (the \u201cFund\u201d or \u201cXFLT\u201d) is seeking shareholder approval of a new investment sub-advisory agreement pursuant to which Rockford Tower Asset Management, L.L.C. (\u201cRockford Tower\u201d), a wholly owned subsidiary of King Street Capital Management, L.P., would replace Octagon Credit Investors, LLC (\u201cOctagon,\u201d \u201cwe\u201d or \u201cours\u201d) as the Fund\u2019s investment sub-adviser.<\/p> \nOctagon is a leading institutional manager of below-investment grade corporate credit and an experienced manager of CLOs and other specialized credit asset classes. We have served as XFLT\u2019s sub-adviser with distinction since the Fund\u2019s inception in 2017. Rockford Tower, on the other hand, is a newly formed entity with no operating history, and its parent company has never managed a closed-end fund.<\/p> \nOver the coming days and weeks, you will receive materials from XFLT soliciting your support ahead of the Fund\u2019s special meeting of shareholders to approve a new sub-advisory agreement among XFLT, XA Investments LLC and Rockford Tower, which is scheduled to be held on July 30, 2026 (the \u201cSpecial Meeting\u201d).<\/p> \nWe urge you to disregard XFLT\u2019s materials and refrain from voting<\/span><\/b> until you have had an opportunity to review all of the relevant facts and consider the potential risks associated with replacing Octagon as the Fund\u2019s longstanding sub-adviser. During Octagon\u2019s tenure as sub-adviser, the Fund earned a five-star rating from Morningstar as recently as 2025 and was recently named a finalist for Creditflux\u2019s Best Public Closed-End CLO Fund.<\/p> \nOctagon expects to distribute its own proxy materials, as well as additional letters and presentations, to XFLT shareholders in the near future. In those communications, we will explain in greater detail the reasons why we believe appointing Rockford Tower as the Fund\u2019s sub-adviser is not in your best interests. Our concerns, however, can be summarized quite simply:<\/p> \nWe believe XFLT\u2019s Board of Trustees has made a monumental error of judgment.<\/b><\/p> \nIn our view, there is no compelling justification for abandoning a proven and longstanding sub-adviser and replacing it with an entity affiliated with a firm that has never managed a closed-end fund and saw its longtime head of structured credit trading recruited to another firm earlier this year. We believe the substantial risks, uncertainty and potential disruption associated with this transition far outweigh any speculative economic benefits.<\/p> \nNothing less than the future of your investment is at stake, and it is critical that you make an informed decision. We therefore urge you to disregard and discard any materials you receive from XFLT and to refrain from voting until you have reviewed Octagon\u2019s forthcoming proxy materials. If you have already voted, you may change your vote at any time prior to the Special Meeting. Only your latest dated vote counts.<\/p> \nWe look forward to engaging with you over the coming weeks.<\/p> \nOctagon Credit Investors<\/p> \nAdvisors\n \nAbout Octagon Credit Investors\n \nOctagon is majority-owned by Conning1<\/sup>, a leading global investment management firm with a long history of serving insurance companies and other institutional investors. Octagon and Conning are part of Generali Investments,2<\/sup> a platform of asset management firms operating in more than 20 countries, offering distinctive strategies in public and private markets and expert insights to help investors achieve long-term performance. Generali Investments is the asset management arm of the Generali Group, one of the world's largest insurance and asset management players.<\/p> \nFor more information, please visit www.octagoncredit.com<\/a>.<\/p> \nImportant Information\n \nTHE PARTICIPANTS STRONGLY ADVISE ALL SHAREHOLDERS OF THE FUND TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS, INCLUDING THE BLUE PROXY CARD, THAT HAVE BEEN OR WILL BE FILED BY SUCH PARTICIPANTS BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS ARE OR WILL BE AVAILABLE AT NO CHARGE ON THE SEC\u2019S WEBSITE AT HTTP:\/\/WWW.SEC.GOV. IN ADDITION, THE PARTICIPANTS WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE UPON REQUEST.<\/p> \nAs of the date hereof, Octagon directly beneficially owns 60,000 common shares of beneficial interest, par value $0.01 per share (the \u201cCommon Shares\u201d). As of the date hereof, Ms. Lam does not beneficially own any securities of the Fund. As of the date hereof, Ms. Law directly beneficially owns 4,000 Common Shares.<\/p> \nInvestor Contacts<\/b> Intends to File Preliminary Proxy Statement in Connection with XFLT\u2019s Upcoming Special Meeting\u00a0![](\"https:\/\/mms.businesswire.com\/media\/20260625953281\/en\/2839995\/4\/OCTAGON_LOGO.jpg\"){kind=logo}
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\nUrges XFLT Shareholders to Disregard and Discard Any Proxy Materials They Receive From XFLT and Refrain From Voting Until Octagon\u2019s Proxy Materials Are Ava…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-26723","post","type-post","status-publish","format-standard","hentry","category-infos-businesswire"],"_links":{"self":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/26723","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26723"}],"version-history":[{"count":1,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/26723\/revisions"}],"predecessor-version":[{"id":26724,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/26723\/revisions\/26724"}],"wp:attachment":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}