Octagon Slams XFLT Board's 'Coercive' Tender Offer Tied to Sub-Adviser Vote
XFLT sits 20% above its 52-week low of $14.925.
Summary
Octagon Credit Investors, the current sub-adviser, has escalated its proxy fight against XFLT's board by criticizing a new liquidity plan that ties contingent tender offers to shareholder approval of a replacement sub-adviser. Octagon calls the plan coercive and insufficient, arguing it primarily benefits selling shareholders while risking long-term performance under an inexperienced manager. Instead, Octagon proposes converting the fund to a 10-year term trust, an unconditional 25% tender offer, cutting management fees from 1.7% to 1.3%, and appointing itself as primary adviser. The special shareholder meeting is set for July 30, 2026. This follows weeks of escalating proxy materials from both sides, with Octagon now offering a concrete alternative that could materially narrow the fund's discount to NAV if adopted. The outcome of the vote will determine whether the board's strategy or Octagon's 'Better Path Forward' prevails, with significant implications for the fund's structure and fees.
At the time of this announcement, XFLT was trading at $17.92 on NYSE in the Finance sector, with a market capitalization of approximately $279.5M. The 52-week trading range was $14.93 to $28.50. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: BusinessWire.