XFLT Proxy Contest: Why the Board Believes the King Street Sub-Adviser Will Be Beneficial for XFLT Shareholders

The Board Unanimously Believes XFLT Shareholders Will Benefit from the King Street Sub-Adviser’s Strong CLO Platform, 30-Year Track Record, Depth of Talent and Expanded Investment Capabilities Leading Proxy Advisors ISS and Glass Lewis BOTH Agree That the King Street Sub-Advisory Agreement Is the Best Path Forward for XFLT

XFLT Asks Shareholders to Vote on the WHITE Proxy Card “FOR” the King Street Sub-Advisory Agreement at Special Meeting on July 30, 2026

XA Investments LLC (“XAI”), manager of XAI Floating Rate & Alternative Income Trust (XFLT) (the “Fund”), outlined the depth of credentials and qualifications of 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 Fund’s upcoming Special Meeting on July 30, 2026, during which XFLT shareholders will vote on the approval of a new investment sub-advisory agreement among the Fund, XAI and the King Street Sub-Adviser (the “King Street Sub-Advisory Agreement”). Additionally, Institutional Shareholder Services Inc. (“ISS”) and Glass, Lewis & Co. LLC ("Glass Lewis"), leading independent proxy advisory firms, both recommended that XFLT shareholders vote to approve the King Street Sub-Advisory Agreement as the best path forward for the Fund.

King Street is a leading global alternative asset management firm with a 30-year track record, approximately $30 billion in total assets under management and over $13 billion in assets under management across 20 U.S. collateralized loan obligations (“CLOs”) and nine European CLOs. The Board believes the King Street Sub-Adviser is the right choice for the future of XFLT due to the strength of its platform, its ability to manage the Fund dynamically within the Fund’s existing mandate and the opportunity for outperformance. The potential for improved long-term performance is especially stark in comparison to Fund’s recent underperformance under the terminated sub-adviser Octagon Credit Investors. This decision culminated a yearlong diligence process that involved 12 Board meetings, extensive due diligence, and the evaluation of numerous potential sub-advisers against rigorous criteria— the King Street Sub-Adviser was the clear choice .

The Board believes that voting “FOR” the approval of the King Street Sub-Advisory Agreement on the WHITE card may provide increased distributions and improved performance over time—with NO new fees. With the King Street Sub-Adviser in place, XFLT may be able to leverage expanded investment opportunities in different parts of the U.S. and European credit markets. King Street benefits from more than 260 employees, including over 90 investment professionals, based in the U.S., London, Singapore and Dubai, with experience investing in the U.S. and global credit markets. The King Street Sub-Adviser will bring rigorous research and credit analysis, tactical trading capabilities and adaptive investment approach to tailor its management to meet XFLT’s investment objective, which remains unchanged.

King Street has a seasoned investment team led by 20 partners and managing directors averaging nearly 23 years of experience. If the King Street Sub-Adviser is approved, 20-year King Street v...