Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 110

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 110
---
                
 and other metrics. We also use other proprietary software and databases to evaluate and model investments on a daily basis. The Adviser,           
 on behalf of its clients, also uses its position as a majority equity holder in CLOs to have periodic updates with the various CLO managers,       
 which often take the form of a credit review of the underlying loan portfolio. Finally, the Adviser uses its market relationships to contextualize 
 the performance of a given CLO relative to its vintage, its competitors, and to the leveraged loan market at the time.                             |

| 61 |

The Adviser’s experience and its proprietary,
technology driven quantitative investment processes are expected to play a key role in enabling identification and sourcing of appropriate
CLO investments in an agile manner while uncovering relative value. The closed-end fund structure will allow the Adviser to take a long-term
view from a portfolio management perspective while allowing investors access liquidity through the exchange. As such, the Adviser can
focus principally on maximizing long-term risk-adjusted returns for the benefit of stockholders.

Other Investment Techniques

Leverage.We may use leverage to
the extent permitted by the 1940 Act. We are permitted to obtain leverage using any form of financial leverage instruments, including
funds borrowed from banks or other financial institutions, margin facilities, notes, or preferred stock, and leverage attributable to
reverse repurchase agreements or similar transactions. Over the long term, management expects us to operate under normal market conditions
generally with leverage within a range of 25% to 35% of total assets, although the actual amount of our leverage will vary over time.
We currently anticipate incurring leverage through the issuance of preferred stock, including the Series A Term Preferred Stock, or reverse
repurchase agreements or similar transactions.

As of June 30, 2025, we had one series of preferred
stock outstanding, the 8.00% Series A Term Preferred Stock Due 2029, and our leverage, which includes the Series A Term Preferred Stock,
represented approximately 24.3% of our total assets. As of June 30, 2025, our asset coverage ratio in respect of our outstanding preferred
stock, calculated pursuant to Section 18 of the 1940 Act, was 396% and we had no amounts drawn under a credit facility. In the event we
fail to meet our applicable asset coverage ratio requirements, we may not be able to incur additional debt and/or issue additional preferred
stock, and could be