{"id":1004616,"date":"2026-09-18T19:33:45","date_gmt":"2026-09-18T23:33:45","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/xai-floating-rate-alternative-income-trust-announces-commencement-of-tender-offer\/"},"modified":"2026-09-18T19:33:45","modified_gmt":"2026-09-18T23:33:45","slug":"xai-floating-rate-alternative-income-trust-announces-commencement-of-tender-offer","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/xai-floating-rate-alternative-income-trust-announces-commencement-of-tender-offer\/","title":{"rendered":"XAI Floating Rate\u00a0& Alternative Income Trust Announces Commencement of Tender Offer"},"content":{"rendered":"
\n

CHICAGO, Sept. 18, 2026 (GLOBE NEWSWIRE) — XAI Floating Rate & Alternative Income Trust (XFLT) (the \u201cFund\u201d) announced today that the tender offer (the \u201cTender Offer\u201d) to purchase for cash up 1,903,861 (approximately 12.5%) of the Fund\u2019s outstanding common shares of beneficial interest, par value $0.01 per share (\u201cCommon Shares\u201d) commenced today, September 18, 2026 and will expire, unless otherwise extended, at one minute following 11:59 p.m., Eastern time, on Monday, October 19, 2026 (the \u201cExpiration Date\u201d). The purchase price for Common Shares purchased in the Tender Offer will be a price per Common Share equal to 98% of the Fund\u2019s net asset value (\u201cNAV\u201d) per Common Share, determined as of the close of the regular trading session of the New York Stock Exchange on the next day the NAV is calculated after the Expiration Date.<\/p>\n

The Fund may extend the period of time the Tender Offer will be open by issuing a press release or making some other public announcement by no later than the next business day after the Tender Offer otherwise would have expired (the \u201cPricing Date\u201d). Should the Tender Offer be extended beyond October 19, 2026, the Pricing Date will be the close of ordinary trading on the NYSE on the next day the NAV is calculated after the newly designated Expiration Date.<\/p>\n

A tendering Common Shareholder may withdraw all, but not less than all, of their tendered Common Shares at any time prior to one minute following 11:59 p.m., Eastern time, on October 19, 2026.<\/p>\n

A Common Shareholder whose Common Shares are registered in the name of a nominee should contact that firm to tender Common Shares. All other shareholders wishing to participate in the Tender Offer must, prior to the date and time the Tender Offer expires, complete and execute a Letter of Transmittal, together with any required signature guarantees, and any other documents required by the Letter of Transmittal. A Common Shareholder must send these materials to the Depositary for the Tender Offer at its address set forth in the Fund\u2019s Offer to Purchase. A tendering Common Shareholder must comply with the book-entry delivery procedure set forth in the Offer to Purchase. The Depositary must receive these materials prior to the date and time the Tender Offer expires.<\/p>\n

The acceptance of Common Shares by the Fund for purchase will constitute a binding agreement between the participating shareholder and the Fund upon the terms and subject to the conditions of the Tender Offer. Because the Tender Offer is limited as to the number of Common Shares that the Fund will purchase, not all Common Shares tendered for purchase by Common Shareholders may be accepted for payment by the Fund. If greater than 1,903,861 of the Fund\u2019s Common Shares are tendered pursuant to the Tender Offer, the Fund would, upon the terms and subject to the conditions of the Tender Offer, purchase Common Shares tendered on a pro rata basis. Accordingly, Common Shareholders cannot be assured that all of their tendered Common Shares will be purchased. All questions as to the validity, form, eligibility (including time of receipt) and acceptance of tenders will be determined by the Fund, in its sole discretion, which determination shall be final and binding.<\/p>\n

The Tender Offer is subject to certain conditions as described in the Offer to Purchase. If any condition is not satisfied, the Fund is not obligated to accept for payment, purchase or pay for, and may delay the acceptance for payment of, any tendered Common Shares, in each case subject to applicable law. The Fund reserves the right, at any time during the pendency of the Tender Offer, to terminate, extend or amend the Tender Offer in any respect. The Tender Offer is not conditioned on the tender of any aggregate minimum number of Common Shares and the Tender Offer is not subject to a financing condition.<\/p>\n

A Common Shareholder\u2019s tender of all or a part of its Common Shares for cash pursuant to the Tender Offer will be a taxable transaction for U.S. federal income tax purposes. The tax consequences of the sale will generally be determined under the stock redemption rules of Section 302 of the Internal Revenue Code of 1986, as amended. The amount and characterization of income recognized by a Common Shareholder in connection with a sale pursuant to the Tender Offer will depend on whether the sale is treated as an \u201cexchange\u201d or a \u201cdividend\u201d for tax purposes.<\/p>\n

The Common Shares are traded on the NYSE under the symbol \u201cXFLT.\u201d As of September 11, there were 15,230,884 Common Shares outstanding. On September 11, 2026, the NAV per Common Share was $22.95 and the last reported sale price for a Common Share on the NYSE on such date was $19.52, representing a discount of 14.95% to NAV. The NAV on the Pricing Date may be higher or lower than the net asset value as of September 11, 2026 and the discount to NAV at which the Common Shares trade may be greater or lesser than the discount as of September 11, 2026. The Fund\u2019s most current NAV and market price per Common Share can be found online at https:\/\/xainvestments.com\/xflt\/<\/a>.<\/p>\n

The Fund has retained Okapi Partners, LLC to act as Information Agent and Computershare to act as Depositary. Questions regarding the Tender Offer should be directed to the information agent for the tender offer, at (855) 305-0855. Copies of the Offer to Purchase and the Letter of Transmittal are available at https:\/\/www.okapivote.com\/XFLTTender<\/a> and will be furnished by the Fund promptly to any Common Shareholder who requests such materials. Shareholders should contact the Information Agreement if they would like to receive mailed copies of the Offer to Purchase and Letter of Transmittal. Common Shareholders may also contact their broker, dealer, bank, trust company or other nominee for assistance concerning the Tender Offer.<\/p>\n

Common Shareholders are advised to check with each intermediary through which they hold Common Shares as to when such intermediary would need to receive instructions from a beneficial owner in order for that Common Shareholder to be able to participate in, or withdraw their instruction to participate in, the Tender Offer before the deadlines specified herein and in the Offer to Purchase. The deadlines set by any such intermediary and DTC for the submission and withdrawal of tender instructions may be earlier than the relevant deadlines specified herein and in the Offer to Purchase.<\/p>\n

The terms and conditions of the Tender Offer are set forth in the Offer to Purchase and related Letter of Transmittal that have been filed with the Securities and Exchange Commission (SEC). The information in this press release is qualified by reference to the Offer to Purchase. The information required to be disclosed by Rule 13e-4(d)(1) of the Exchange Act is contained in the Offer to Purchase and is incorporated herein by reference.<\/p>\n

\n Liquidity Plan<\/em>\n <\/p>\n

The Tender Offer is part of the Fund\u2019s liquidity plan adopted by the Board of Trustees of the Fund. The Tender Offer will be followed by two subsequent tender offers, to be completed unless specified discount to NAV or NAV performance objectives are achieved.<\/p>\n

The first contingent tender offer is expected to commence approximately 13 months following the completion of the Tender Offer. The first contingent tender offer will not occur if either one of two conditions are met:<\/p>\n