XFLT presses vote on King Street sub‑adviser

XAI Floating Rate & Alternative Income Trust has asked shareholders to vote in favor of the long‑term appointment of Rockford Tower Asset Management, L.L.C. as sub‑adviser under the King Street Sub‑Advisory Agreement. The proposal will be decided at a reconvened Special Meeting of Shareholders scheduled for August 6, 2026. The trust emphasizes that the decision is important for the fund’s ongoing management structure and related strategic plans.

Rockford Tower Asset Management is a wholly owned subsidiary of King Street Capital Management. It began serving as the fund’s sub‑adviser on July 30, 2026, under the King Street Sub‑Advisory Agreement. The upcoming vote seeks shareholder approval to confirm and extend this sub‑advisory relationship on a long‑term basis.

The board of XFLT states that Octagon has been terminated and no longer has responsibility for the fund’s daily portfolio management. Octagon no longer has authority to implement any proposed plans for the fund. The board has made clear that a vote against the King Street Sub‑Advisory Agreement at the special meeting will not reverse Octagon’s termination or restore its former role.

In urging support for the proposal, the board points to recommendations from proxy advisory firms Institutional Shareholder Services and Glass, Lewis & Co. It also instructs shareholders to use the WHITE proxy card when casting their votes, underscoring the distinction from any other proxy materials that may have been circulated previously.

The board connects a vote in favor of the King Street Sub‑Advisory Agreement with the ability to carry out a Comprehensive Liquidity Program for shareholders. This program is expected to include an initial tender offer for the fund’s common shares. In addition, two contingent tender offers are planned to occur approximately 13 and 25 months after completion of the initial tender, subject to specified performance or market conditions.

The contingent tenders are conditioned on the fund’s net asset value performance or a market discount test. The board has refined the market discount condition so that it is met only if the fund’s common shares close at a market price representing a discount to net asset value of less than 15% on 15 of any 20 consecutive trading days. This trading period must fall within the final three months of the measurement period before the applicable contingent tender.

XFLT provides several methods for shareholders to participate in the vote. Investors are asked to use the WHITE proxy card and may vote online using a control number, by calling a toll‑free telephone number listed on the card, or by mailing back the WHITE proxy card in a postage‑paid envelope. These channels are intended to make it straightforward for both new and existing shareholders to register their preferences.

Shareholders who have already voted are informed that they may change their vote by voting again using any of the available methods. The most recent valid vote submitted will be counted at the reconvened special meeting. The board’s communication stresses the importance of timely participation so that the fund can proceed with its chosen sub‑adviser and the associated liquidity initiatives.