XAI Octagon Floating Rate & Alternative Income Trust 8-K

What Happened
XAI Octagon Floating Rate & Alternative Income Trust (XFLT) announced on an 8-K that holders approved Amendment No. 1 to Appendix D of its Statement of Preferences to eliminate the Non‑Call Period for the 6.95% Series II 2029 Convertible Preferred Shares. The amendment was adopted by the holders on December 29, 2025, is effective as of June 10, 2024, and was accepted and approved by the Trust’s Board of Trustees. The Series is described as 6.95% Series II 2029 Convertible Preferred Shares, par value $0.01, with a $25.00 liquidation preference per share.

Key Details

• Amendment No. 1 to Appendix D eliminates the Non‑Call Period that previously restricted redemption of the 6.95% Series II 2029 Convertible Preferred Shares.
• Series specifics: 6.95% dividend rate, convertible, par $0.01, $25.00 liquidation preference, referenced to Statement of Preferences effective March 23, 2021.
• Holder approval date: December 29, 2025; amendment effective as of June 10, 2024.
• The filing’s Other Events section references the 6.95% Series II 2029 Convertible Preferred Shares on January 30, 2026; no additional detail is provided in the 8‑K. An executed copy of Amendment No. 1 is filed as Exhibit 3.1.

Why It Matters
Removing the Non‑Call Period means the Trust may now redeem (call) these preferred shares subject to the terms of the series, which changes the timing risk for holders. For investors, this can affect the market price and total expected return: callable preferreds often trade closer to par when redemption is possible, and holders lose future dividend income if shares are redeemed. Current and prospective investors in XFLT’s Series II preferred shares should review the amendment and the Series’ redemption terms to understand potential impacts on yield and position timing.