Corporate ActionJul 29, 2026, 08:32 AM
XFLT Urges Vote FOR King Street Sub-Adviser, Announces Tender Offers
AI Summary
XAI Octagon Floating Rate & Alternative Income Trust (XFLT) is urging shareholders to vote "FOR" a new investment sub-advisory agreement with King Street Capital Management at a special meeting on July 30, 2026. The proposed agreement includes a liquidity plan featuring an initial tender offer for up to 12.5% of shares at 98% of NAV, followed by two contingent tender offers. This strategic move follows the termination of the previous sub-adviser, Octagon, due to persistent underperformance, with the Board confident that King Street will improve long-term performance and enhance distributions.
Key Highlights
- Shareholders urged to vote "FOR" King Street Sub-Advisory Agreement on July 30, 2026.
- Initial tender offer for up to 12.5% of common shares at 98% of NAV expected within 45 days of approval.
- Two contingent tender offers for an additional 12.5% of shares if discount or NAV performance targets are not met.
- King Street Capital Management manages $30 billion in assets, including $12 billion in CLO AUM.
- Octagon, the previous sub-adviser, has been terminated due to persistent underperformance.
- Board's liquidity plan includes tender offers and a discount management program.
- Independent proxy advisory firms ISS and Glass Lewis recommend voting "FOR" the agreement.
Price Impact
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