XAI Floating Rate & Alternative Income Trust has completed its tender offer, purchasing 1,903,861 shares at a price of $21.0602 each. This repurchase reflects the company's ongoing strategy to manage its share count and enhance shareholder value.
The tender offer, which began on September 18, 2026, and expired on October 19, 2026, allowed the Trust to buy back approximately 12.5% of its outstanding common shares. The total amount paid for the repurchased shares was approximately $154.4 million.
Background
XAI Floating Rate & Alternative Income Trust, trading under the ticker XFLT on the NYSE, is a closed-end fund that focuses on floating rate and alternative income investments. The Trust aims to provide attractive risk-adjusted returns to its shareholders. It was previously known as XAI Octagon Floating Rate & Alternative Income Trust, a name change that took effect on February 2, 2024.
What the Filing Says
The tender offer was for up to 1,903,861 shares, with a purchase price set at 98% of the net asset value (NAV) per share, determined as of the close of trading on the NYSE on October 20, 2026. The filing noted, "7,331,021 Common Shares were validly tendered and not withdrawn prior to the expiration of the Offer, and 1,903,861 Common Shares were accepted for repurchase by the Trust, in accordance with the terms of the Offer." The proration factor for the shares accepted was 26.01%.
Impact
This tender offer may affect existing shareholders by potentially increasing the value of their remaining shares through reduced supply. It also signals to the market that XAI Floating Rate & Alternative Income Trust is committed to returning capital to shareholders, a strategy that could resonate with investors in the closed-end fund sector.
What's Next
The filing does not say what happens next.