XAI Octagon Floating Rate & Alternative Income Trust Declares its Monthly Common Shares Distribution and Quarterly Preferred Shares Dividend

Core Viewpoint - XAI Octagon Floating Rate & Alternative Income Trust has declared its regular monthly distribution of $0.070 per common share and preferred dividends of $0.40625 per preferred share for the quarter, with no changes from previous declarations [1][3] Distribution Details - The ex-dividend date for both common shares (XFLT) and preferred shares (XFLTPRA) is October 15, 2025, with payable dates set for November 3, 2025, and October 31, 2025, respectively [1] - Common share distributions may derive from net investment income, capital gains, and/or a return of capital, with specific tax characteristics reported on Form 1099 after the end of the calendar year [1][5] Investment Strategy - The Trust aims to maintain stable monthly distributions over time despite potential variations in net investment income and capital gains [2] - The investment objective focuses on achieving attractive total returns with an emphasis on income generation across multiple stages of the credit cycle, primarily investing in floating rate credit instruments and structured credit [10] Preferred Shares Information - The 6.50% Series 2026 Term Preferred Shares dividend is based on a liquidation preference of $25.00 per share and a fixed dividend rate of 6.50% [3][6] - Preferred shareholders receive cumulative cash dividends, prioritized over common shares, and if full dividends cannot be distributed, they will be allocated on a pro rata basis [6] Tax Considerations - As a registered investment company, the Trust is subject to a 4% excise tax if it fails to distribute at least 98% of its ordinary income and 98.2% of its capital gains by the end of the calendar year [4] - The Trust's final taxable income for the current fiscal year will be determined after tax returns are filed, which may differ significantly from GAAP income [2][4] Company Background - XA Investments LLC serves as the Trust's investment adviser, managing a portfolio of opportunities within private credit markets [11] - Octagon Credit Investors, LLC acts as the investment sub-adviser, focusing on below-investment grade corporate credit investments [15]