XFLT Sells 7.3M Preferred Shares, Raises $71.5M for Refinancing
XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) has agreed to sell 7,300,000 shares of its 5.92% Series A Preferred Shares, making it a preferred choice for investors. The sale is expected to generate approximately $71.5 million in net proceeds.
The Preferred Shares will pay a quarterly dividend at a fixed annual rate of 5.92% of the liquidation preference, or $0.5920 per share, per year. These shares are not listed on any exchange and may only be transferred under an exemption to the Securities Act of 1933 or certain other circumstances. Moelis & Company LLC acted as the exclusive placement agent for the offering. The net proceeds will be used to refinance existing leverage and for general corporate purposes. The Trust expects to redeem all outstanding Preferred Shares on January 31, 2031, at a price equal to the liquidation preference plus accumulated but unpaid dividends. Additional information regarding the Preferred Shares will be included in a Current Report on Form 8-K filed with the SEC.
The sale of the Preferred Shares is subject to completion of legal documentation and other standard closing conditions. The specific institutions that acquired the shares and the issuing partner are not disclosed in the given information, but can be found in official press releases or financial news sources.
