XAI Floating Rate & Alternative Income Trust has announced the preliminary results of its recent tender offer, which was oversubscribed. The company plans to purchase approximately 12.5% of its outstanding shares at a price based on net asset value. This move reflects a strategic effort to enhance shareholder value in a competitive market. The tender offer's popularity highlights investor interest in alternative income strategies.
Background
XAI Floating Rate & Alternative Income Trust is a closed-end fund trading on the New York Stock Exchange under the ticker symbol XFLT. The trust focuses on providing alternative income through investments in various financial instruments. The company was incorporated in Delaware and has undergone several name changes, with its most recent being on February 2, 2024, when it rebranded from XAI Octagon Floating Rate & Alternative Income Trust.
What the Filing Says
According to the filing dated October 20, 2026, the trust's tender offer commenced on September 18, 2026, and expired at 11:59 p.m. Eastern Time on October 19, 2026. The offer was for up to 1,903,861 common shares, representing approximately 12.5% of the Fund’s outstanding shares. The preliminary results indicated that approximately 7,331,021 shares were validly tendered, leading to a prorated purchase from shareholders.
Impact
This tender offer is expected to significantly impact shareholders, as the purchase price will be set at 98% of the net asset value per share as of the close of trading on October 20, 2026. The oversubscription of the tender offer suggests a strong demand for the trust's shares and highlights the attractiveness of its investment strategy in the current market environment.
What's Next
The trust expects to announce the final results of the tender offer, including the pro-rata factor, on or about October 21, 2026. Shareholders are encouraged to stay tuned for these updates as they will provide further insights into the outcome of the offer.