XFLT Seeks Shareholder Approval for King Street Sub-Adviser, Liquidity Plan
XAI Octagon Floating Rate & Alternative Income Trust (XFLT) is urging shareholders to vote "FOR" the long-term appointment of Rockford Tower Asset Management, L.L.C. (King Street Sub-Adviser) ahead of the reconvened Special Meeting on August 6, 2026. The Board also proposed a liquidity plan and discount management program, which includes an initial tender offer for up to 12.5% of common shares at 98% of NAV, and two contingent tender offers for an additional 12.5% of shares if certain discount or NAV performance conditions are not met. This plan is contingent on the approval of the King Street Sub-Advisory Agreement.
Key Highlights
- Shareholders urged to vote "FOR" King Street Sub-Adviser by August 6, 2026.
- King Street Sub-Adviser is a subsidiary of King Street Capital Management, managing a $12 billion CLO platform.
- Proposed liquidity plan includes initial tender offer for up to 12.5% of shares at 98% of NAV.
- Two contingent tender offers for up to an additional 12.5% of shares under specific conditions.
- Contingent offers trigger if discount remains wide or NAV doesn't increase by $0.25 per share.
- Total value creation of at least $2.95 per share over 12 months required to avoid contingent offers.
- Liquidity plan and discount management program become effective upon approval of the sub-advisory agreement.
Price Impact
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