XFLT Board Urges Shareholders to Vote FOR Approval of King Street Sub-Adviser Ahead of August 6th Special Meeting

XAI Floating Rate & Alternative Income Trust (XFLT) urges shareholders to vote today on the WHITE proxy 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.

The King Street Sub-Adviser is serving as sub-adviser to XFLT pursuant to an interim contract, as of July 30, 2026. King Street is a leading global alternative asset manager with $30 billion in assets under management, a 30-year track record, and a proven CLO platform and broader investment capabilities.

Preliminary voting indicates that votes “ FOR ” the King Street Sub-Adviser by engaged shareholders would have approved the proposal on July 30 th if not for the impact of shares voted to Abstain. Voting today to approve the long-term appointment of the King Street Sub-Adviser effectuates implementation of the Board’s proposed liquidity plan, including an initial tender offer and a discount management program consisting of two contingent tender offers, occurring approximately 13 and 25 months after the completion of the initial tender offer.

Preliminary voting has shown that more than two-thirds of engaged shareholders, excluding shares voted to Abstain, have voted in favor of the Board’s proposal, which has also gained support from prominent third parties. Two leading independent proxy advisory firms, Institutional Shareholder Services Inc. (ISS) and Glass, Lewis & Co. LLC, each recommend voting “ FOR ” the Board’s proposal. In addition, a leading subscription-based investment group on Seeking Alpha recently published a recommendation for XFLT shareholders to vote “ FOR ” the Board’s proposal.

The terminated sub-adviser Octagon has no authority to implement their proposed plan. Octagon’s ideas regarding fees, governance, Fund structure and liquidity are not binding commitments, are not before shareholders for approval and cannot be implemented by Octagon. By contrast, approval of the Board’s proposal allows the Fund to continue with the King Street Sub-Adviser and move forward with the Board’s concrete shareholder liquidity program. A vote “AGAINST” does not implement any of Octagon’s ideas, nor would it return Octagon to the Fund.

Shareholders Should Vote Today “FOR” Approval of the King Street Sub-Advisory Agreement. The Board urges XFLT shareholders to follow recommendations from Institutional Shareholder Services Inc. (“ISS”) and Glass, Lewis & Co. LLC (“Glass Lewis”), the leading independent proxy advisory firms, and vote “ FOR ” the King Street Sub-Adviser on the WHITE proxy card.