XAI Octagon Floating Rate & Alternative Income Term Trust Reaches $500 Million Total Managed Assets Milestone

XA Investments (“XAI”), a Chicago-based alternative asset manager, is pleased to announce that the XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT, the “Trust”) has surpassed $500 million in total managed assets. The Trust launched in September 2017 with $82 million in common assets and has executed several accretive follow-on equity offerings in addition to an “at-the-market” offering program, fueling unparalleled asset growth compared to broader listed closed-end funds.

XFLT provides investors access to income-producing securities including senior loans, collateralized loan obligation (“CLO”) debt and CLO equity. The Trust’s investment objective is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. Kimberly Flynn, Managing Director at XAI noted, “We believe the Trust is uniquely positioned in the listed closed-end fund marketplace with its strategic investment mix of income-producing securities including loans and CLO investments. The Trust’s asset mix is designed to seek enhanced risk-adjusted returns over time.”

Ted Brombach, Co-CEO of XAI also noted, “We are pleased with the strong asset growth we’ve observed in this Trust and its reception among institutional investors, financial advisors and other income-oriented investors. Octagon Credit Investors is a recognized leader in the CLO marketplace and as such the Trust has developed a loyal investor base. Our investor relations and marketing team has prioritized investor education efforts on the CLO market, which we believe has supported the Trust’s growth over time.”

Gretchen Lam, Senior Portfolio Manager at Octagon, commented, “We are pleased to reach this milestone, which we believe underscores the resiliency of the loan and CLO markets, and the strength of the Trust’s investment strategy. We thank the shareholders for their confidence, and we are excited for the next phase of the Trust’s growth. We look forward to further serving a broader investor base with additional institutional strategies that leverage Octagon’s core competencies.”

There can be no assurance that the Trust will achieve its investment objective. The Trust pays regular monthly distributions based on GAAP earnings. The Trust’s common shares are traded on the New York Stock Exchange under the symbol “XFLT,” and the Trust’s 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol “XFLTPRA.”

About XA Investments

XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.

About XMS Capital Partners

XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.

About Octagon Credit Investors

Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser. Octagon is a 25+ year old, $34.5B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon’s investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon’s investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.

XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.

Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust’s webpage at www.xainvestments.com.

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.

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