XFLT Announces Plan for Initial Tender Offer and Subsequent Liquidity Opportunities for Shareholders

XAI Floating Rate & Alternative Income Trust (XFLT) today announced that the Board of Trustees of the Fund has approved a liquidity plan, involving a series of liquidity opportunities for shareholders, including an initial tender offer (the “Initial Tender Offer”) followed by two subsequent tender offers, to be completed unless specified discount to net asset value (“NAV”) or NAV performance objectives are achieved. The implementation of the liquidity plan and the tender offers contemplated thereby are contingent upon shareholder approval of the proposed investment sub-advisory agreement among the Fund, XAI and 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") (the "King Street Sub-Advisory Agreement"). The Initial Tender Offer would provide for the repurchase of up to 12.5% of the Fund's then outstanding common shares of beneficial interest, par value $0.01 per share (“Common Shares”) at a price per share equal to 98% of NAV on the expiration date of the tender offer, and is expected to commence approximately 45 days following shareholder approval of the King Street Sub-Advisory Agreement. The first contingent tender offer would provide for the repurchase of up to 7.5% of the Fund’s then outstanding Common Shares at a price per share equal to 98% of NAV on the expiration date of the tender offer, and is expected to commence approximately 13 months following the completion of the Initial Tender Offer. The first contingent tender offer will not occur if (1) the Fund's market discount to NAV is less than 15% at the close of trading for three consecutive trading days during a 12-month measurement period beginning five business days after the completion of the Initial Tender Offer; or (2) the Fund's average daily NAV during the final 20 trading days of such 12-month period exceeds the Fund's NAV measured five business days following completion of the Initial Tender Offer by at least $0.25 per share, as adjusted for distribution decreases or increases during the 12-month period. The second contingent tender offer would provide for the repurchase of up to 5.0% of the Fund’s then outstanding Common Shares at a price per share equal to 98% of NAV on the expiration date of the tender offer, and is expected to commence approximately 25 months following the completion of the Initial Tender Offer. The second contingent tender will not occur if (1) the Fund's market discount to NAV is less than 15% at the close of trading for three consecutive trading days during either the first or second 12-month measurement periods; or (2) the Fund's average daily NAV during the final 20 trading days of the second 12-month period exceeds the Fund's NAV measured five business days following completion of the Initial Tender Offer by at least $0.25 per share, as adjusted for distribution decreases or increases during the first and second 12-month period. The Fund will repurchase Common Shares tendered and accepted in each tender offer in exchange for cash. In the event any tender offer is oversubscribed, Common Shares will be repurchased on a pro rata basis. The Initial Tender Offer and the two subsequent tender offers reflect the Fund Board’s commitment to implementing initiatives designed to enhance long-term performance of the Fund. The Board remains confident that the King Street Sub-Adviser is best qualified to deliver stronger outcomes for al.