Octagon Fires Back at XFLT Board, Alleges Flawed King Street Selection and Calls for Board Overhaul
XFLT is trading near its 52-week low of $14.925 (15% above the low).
Summary
Octagon Credit Investors, the terminated sub-adviser, publicly rebutted XFLT's Board, accusing it of ignoring Octagon's outperformance and selecting King Street through a flawed process. Octagon claims King Street has suffered poor performance and severe client withdrawals, leading to redemption restrictions. The statement escalates the proxy fight ahead of the July 30 special meeting, directly challenging the Board's narrative and calling for a reconstituted board, lower fees, and a narrowed discount to NAV. Octagon is urging XAI Floating Rate Alternative Income shareholders to vote against the new sub-adviser proposal. This follows a week of aggressive proxy filings from both sides, with the Board recently disclosing S&P downgrades of Octagon-managed CLOs. The public airing of King Street's alleged troubles adds a new dimension to the contest, potentially swaying shareholder votes.
At the time of this announcement, XFLT was trading at $17.12 on NYSE in the Finance sector, with a market capitalization of approximately $265.3M. The 52-week trading range was $14.93 to $28.50. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: BusinessWire.