XFLT Asks Shareholders to Vote FOR the King Street Sub-Advisory Agreement
Rhea-AI Summary
XAI Floating Rate & Alternative Income Trust (NYSE:XFLT) is urging shareholders to vote on the WHITE proxy card “FOR” approval of the long-term sub-advisory agreement with Rockford Tower Asset Management, a wholly owned subsidiary of King Street Capital Management, ahead of the reconvened special meeting on August 6, 2026. Rockford Tower has begun serving as interim sub-adviser as of July 30, 2026.
The Board highlights recommendations from ISS and Glass Lewis supporting a “FOR” vote and outlines a liquidity plan and discount management program that will become effective upon approval. The plan features an Initial Tender Offer for up to 12.5% of common shares at 98% of NAV within 45 days and two contingent tender offers for up to an additional 12.5% of shares in total if specified discount or NAV performance conditions are not met, including a $0.25 per share NAV increase on top of current distributions for at least $2.95 per share total value creation over each 12‑month measurement period.
Positive
- Initial tender offer up to 12.5% of shares at 98% of NAV within 45 days, contingent on agreement approval
- Contingent tenders up to an additional 12.5% of shares at 98% of NAV if discount or NAV conditions are not met
- Performance hurdle requires about $2.95 per share total value creation over 12 months to avoid first contingent tender
- Interim sub-adviser in place Rockford Tower began serving July 30, 2026, supported by King Street’s $12 billion CLO platform
Negative
- Liquidity plan conditional Tender offers and discount management program take effect only if the King Street sub-advisory agreement is approved
- Tender offers not guaranteed Contingent tenders occur only if market discount stays above 15% or NAV performance condition is not achieved
AI-generated analysis. How Rhea-AI works. Not financial advice.
CHICAGO, July 31, 2026 (GLOBE NEWSWIRE) -- XAI Floating Rate & Alternative Income Trust (XFLT) (the “Fund”) urges shareholders to vote today on the WHITE card “FOR” the long-term appointment of interim sub-adviser Rockford Tower Asset Management, L.L.C. (the “King Street Sub-Adviser”), a wholly owned subsidiary of King Street Capital Management, L.P. (“King Street”), ahead of the reconvened Special Meeting of Shareholders on August 6, 2026.
Your Vote Is Important. Vote Today “FOR” the Approval of The King Street Sub-Advisory Agreement.
How to Vote:
The Board urges XFLT shareholders to follow recommendations from Institutional Shareholder Services Inc. (“ISS”) and Glass, Lewis & Co. LLC ("Glass Lewis"), leading independent proxy advisory firms, and vote “FOR” the King Street Sub-Adviser on the WHITE Card. Use one of the following options to vote:
- By Internet: Visit the website listed on your WHITE proxy card, enter your control number and follow the simple on-screen instructions.
- By Phone: Call the toll-free number listed on your WHITE proxy card.
- By Mail: Sign and return the WHITE proxy card in the enclosed postage-paid envelope.
If you previously voted and want to change your vote to vote “FOR” the King Street Sub-Adviser, all you need to do is vote again following the instructions above.
The King Street Sub-Adviser Is Interim Sub-Adviser.
- The King Street Sub-Adviser has begun serving as sub-adviser to XFLT pursuant to an interim contract, as of July 30, 2026.
- The King Street Sub-Adviser is a leading global alternative asset manager with a
$12 billion CLO platform and deep bench of talent, including 20-year King Street veteran and partner Young Choi, currently serving as Portfolio Manager of XFLT. - The XFLT Board asks all shareholders to review the Fund’s proxy materials and vote on the WHITE proxy card FOR the King Street Sub-Adviser to ensure the King Street Sub-Adviser can continue managing the Fund.
The XFLT Board Has Proposed a Liquidity Plan and Discount Management Program.
- A liquidity plan provides shareholders with near-term liquidity and a clear discount-management framework. The liquidity plan includes an initial tender offer (the “Initial Tender Offer”) for up to
12.5% of common shares at98% of net asset value (“NAV”) within 45 days, followed by two contingent tender offers for up to an additional12.5% of shares in total if the Fund does not achieve specified discount or NAV performance conditions. - Contingent tender offers designed to protect shareholders if the Fund’s discount remains wide or performance does not meaningfully improve. The contingent tender offers would provide shareholders the opportunity to sell shares at
98% of NAV unless the Fund’s market discount narrows below15% for at least three consecutive trading days or the Fund meets the NAV performance condition of a$0.25 per share NAV increase, in addition to the current distributions for a total value creation of at least$2.95 over each 12-month measurement period. - The contingent tender offers are intended to reflect a meaningful performance hurdle—in addition to distributions. For example, if the current
$0.225 m onthly distribution is maintained, the first contingent tender will occur unless the Fund distributes approximately$2.70 per share over a 12-month period and generates an additional$0.25 per share of NAV appreciation. That equates to approximately$2.95 per share of total value creation over the measurement period, with the NAV condition adjusted for any changes in the distribution. Any increase or decrease in distributions would still require the$2.95 in value creation, as the NAV condition would adjust accordingly. - The liquidity plan and discount management program will become effective upon approval of the King Street Sub-Advisory Agreement.
If you have any questions or need assistance voting your shares, please contact our proxy solicitation firm, Okapi Partners LLC, toll-free at (855) 305-0855 or by email at XAI@OkapiPartners.com.
About XA Investments
XA Investments LLC is a Chicago-based firm founded by XMS Capital Partners in 2016. XAI serves as the investment adviser for two listed closed-end funds and an interval closed-end fund. 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 product development and market research, marketing and fund management. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. For more information, please visit www.xainvestments.com.
About King Street Capital Management
King Street is a global alternative investment firm founded in 1995 that manages
Forward-Looking Statements
This press release contains certain statements that may include “forward-looking statements.” Forward-looking statements can be identified by the words “may,” “will,” “intend,” “expect,” “estimate,” “continue,” “plan,” “anticipate,” and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Fund’s actual results are the performance of the portfolio of securities held by the Fund, the conditions in the U.S. and international financial and other markets, the price at which Fund shares trade in the public markets and other factors. Although the Fund believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Fund’s future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Fund’s ongoing obligations under the federal securities laws, the Fund does not intend, and the Fund undertakes no obligation, to update any forward-looking statement.
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.
Past performance is no guarantee of future results. An investment in the Fund involves risk, including the possible loss of principal. Investors should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. Please refer to the Fund’s filings with the Securities and Exchange Commission for additional information.
Media Contact:
XA Investments LLC
Kim Shepherd
Senior Consultant
kshepherd@xainvestments.com
312-623-5123
www.xainvestments.com
Prosek Partners
Pro-XAI@Prosek.com
