Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 200

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 200
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 and in certain other limited circumstances.

As a registered closed-end management investment
company, we may use leverage as and 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. Instruments that create leverage are generally considered
to be senior securities under the 1940 Act. With respect to senior securities representing indebtedness (i.e., borrowing or deemed
borrowing), other than temporary borrowings as defined under the 1940 Act, we are required under current law to have an asset coverage
of at least 300%, as measured at the time of borrowing and calculated as the ratio of our total assets (less all liabilities and indebtedness
not represented by senior securities) over the aggregate amount of our outstanding senior securities representing indebtedness. With respect
to senior securities that are stocks (i.e., shares of preferred stock, including the preferred stock), we are required under current
law to have an asset coverage of at least 200%, as measured at the time of the issuance of any such shares of preferred stock and calculated
as the ratio of our total assets (less all liabilities and indebtedness not represented by senior securities) over the aggregate amount
our outstanding senior securities representing indebtedness plus the aggregate liquidation preference of any outstanding shares of preferred
stock. If our asset coverage declines below 300% (or 200%, as applicable), we would not be able to incur additional debt or issue additional
preferred stock, and could be required by law to sell a portion of our investments to repay some debt or redeem preferred stock when it
is disadvantageous to do so, which could have a material adverse effect on our operations, and we may not be able to make certain distributions
or pay dividends. In addition, we may borrow for temporary or other purposes as permitted under the 1940 Act, which indebtedness would
be in addition to the asset coverage requirements described above.

Leveraged Transactions. Certain
portfolio management techniques, such as entering into certain Derivative Transactions, or purchasing securities on a when-issued or delayed-delivery
basis, that may be considered senior securities under the 1940 Act. We intend to elect to rely on the limited derivatives user exception
under Rule 18f-4 and otherwise comply with Rule 18f-4 with respect to such transactions and therefore may