XAI Octagon Floating Rate & Alternative Income Trust

Shareholders of XAI Floating Rate & Alternative Income Trust approved a new investment sub-advisory agreement with Rockford Tower Asset Management, L.L.C. The special meeting, initially convened on July 30, 2026, was adjourned and reconvened on August 6, 2026, to secure additional proxies. Following shareholder approval, the Trust, XA Investments, LLC, and Rockford Tower Asset Management, L.L.C. formally entered into the New Sub-Advisory Agreement on August 10, 2026. This agreement has an initial term of two years and includes provisions for annual renewal and termination by either party.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) shareholders approved the King Street Sub-Advisory Agreement, appointing Rockford Tower Asset Management, a King Street subsidiary, as the new investment sub-adviser. This partnership is expected to enhance the Fund's performance, expand liquidity, and position it for long-term success by leveraging King Street's extensive credit expertise and $30 billion platform. The Board believes this move will improve portfolio management and shareholder value. Young Choi will serve as the new Portfolio Manager.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) reminded shareholders to vote "FOR" the King Street Sub-Advisory Agreement by the August 5, 2026, 11:59 PM ET deadline, ahead of the reconvened Special Meeting on August 6. The Fund highlighted independent recommendations from High Dividend Opportunities, ISS, and Glass Lewis supporting the agreement. The Board believes the sub-advisory agreement, combined with a liquidity plan detailed in a video by XFLT VP Kimberly Flynn, will enhance long-term shareholder value.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) is urging shareholders to vote "FOR" the King Street Sub-Advisory Agreement by the August 5, 2026 deadline. This agreement involves the long-term appointment of Rockford Tower Asset Management, a subsidiary of King Street Capital Management, as the interim sub-adviser. The recommendation is supported by leading investment research provider High Dividend Opportunities (Seeking Alpha) and proxy advisory firms ISS and Glass Lewis. The agreement is linked to a proposed liquidity plan, including tender offers, aimed at enhancing long-term shareholder value.

XAI Octagon Floating Rate & Alternative Income Trust declared a regular monthly distribution of $0.225 per common share, payable on September 1, 2026, to shareholders of record as of August 17, 2026. This distribution amount remains unchanged from the previous month. Additionally, the Trust announced that Rockford Tower Asset Management, L.L.C. began serving as the sub-adviser as of July 30, 2026. The Trust also provided details on the potential tax characteristics of distributions, noting they may include net investment income, capital gains, and/or a return of capital.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) is urging shareholders to vote "FOR" the long-term appointment of King Street Sub-Adviser on the WHITE proxy card ahead of the August 6th Special Meeting. This recommendation follows endorsements from leading independent proxy advisory firms ISS and Glass Lewis. Approval of the King Street Sub-Advisory Agreement will activate a liquidity plan, which includes an initial tender offer for up to 12.5% of common shares at 98% of net asset value (NAV) and subsequent contingent tender offers designed to protect shareholders.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) is urging shareholders to vote "FOR" the King Street Sub-Advisory Agreement on the WHITE proxy card ahead of the August 6, 2026 Special Meeting. This agreement would permanently appoint Rockford Tower Asset Management, a King Street subsidiary, as sub-adviser, replacing the terminated Octagon. The Board's comprehensive liquidity program, including an initial tender offer and two contingent tender offers with a refined market discount condition, is designed to unlock shareholder value and enhance performance.

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.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) entered into an interim investment sub-advisory agreement with Rockford Tower Asset Management, L.L.C. (King Street Sub-Adviser), effective July 30, 2026. This follows the termination of the previous agreement with Octagon Credit Investors, LLC. The King Street Sub-Adviser, a subsidiary of King Street Capital Management ($30.0 billion AUM), will receive 52% of the advisory fee, while the Trust's investment objective and advisory fee rate remain unchanged. A special shareholder meeting to approve a new sub-advisory agreement has been adjourned to August 6, 2026.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) announced that the King Street Sub-Adviser has begun serving as interim sub-adviser as of July 30, 2026. The Fund has adjourned its Special Meeting of Shareholders to August 6, 2026, to allow more time for shareholders to vote on the long-term King Street Sub-Advisory Agreement, which requires a 67% affirmative vote. The Board is urging shareholders to vote "FOR" the agreement, highlighting potential for increased distributions, improved performance, and a liquidity plan including an initial tender offer for up to 12.5% of shares at 98% NAV, followed by two contingent tender offers.