Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 53

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 53
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 income and the fair value of that asset.

We may leverage our portfolio, which would magnify the potential for gain or loss on amounts invested and increase the risk of investing in us.

We may incur leverage, directly or indirectly,
through one or more special purpose vehicles, indebtedness for borrowed money, as well as leverage in the form of Derivative Transactions,
preferred stock, debt securities, and other structures and instruments, in significant amounts and on terms that the Adviser and our board
of directors deem appropriate, subject to applicable limitations under the 1940 Act. Such leverage may be used for the acquisition and
financing of our investments, to pay fees and expenses, and for other purposes. Such leverage may be secured or unsecured. Any such leverage
does not include leverage embedded or inherent in the CLO structures in which we invest or derivative instruments in which we may invest.

To the extent that we employ additional leverage,
such leverage will have a greater effect on our portfolio. Accordingly, any event that adversely affects the value of an investment would
be magnified to the extent leverage is utilized. For instance, any decrease in our income would cause net income to decline more sharply
than it would have had we not borrowed. Such a decline could also negatively affect our ability to make distributions and other payments
to our securityholders. Leverage is generally considered a speculative investment technique. Our ability to service any debt that we incur
will depend largely on our financial performance and will be subject to prevailing economic conditions and competitive pressures. The
cumulative effect of the use of leverage with respect to any investments in a market that moves adversely to such investments could result
in a substantial loss that would be greater than if our investments were not leveraged.

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As a registered closed-end management investment
company, we will generally be required to meet certain asset coverage requirements, as defined under the 1940 Act, with respect to any
senior securities. With respect to senior securities representing indebtedness (i.e., borrowings or deemed borrowings), 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), we