Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 83

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 83
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of our common stock instead of in cash even if a stockholder has opted out of participation in the DRIP. As long as at least 20% of such
distribution is paid in cash and certain requirements are met, the entire distribution will be treated as a dividend for U.S. federal
income tax purposes. As a result, a stockholder generally would be subject to tax on 100% of the fair market value of the distribution
on the date the distribution is received by the stockholder in the same manner as a cash distribution, even though most of the distribution
was paid in shares of our common stock.

We will incur significant costs as a result of being a publicly traded company.

Once listed on a national securities exchange,
we will incur legal, accounting and other expenses, including costs associated with the periodic reporting requirements applicable to
a company whose securities are registered under the Securities Exchange Act of 1934, as amended, or the “Exchange Act,” as
well as additional corporate governance requirements, including requirements under the Sarbanes-Oxley Act of 2002 and other rules implemented
by the SEC.

Because we expect to distribute substantially all of our ordinary income and net realized capital gains to our stockholders, we may need additional capital to finance the acquisition of new investments and such capital may not be available on favorable terms, or at all.

In order to maintain our RIC status, we will be
required to distribute at least 90% of the sum of our net ordinary income and realized net short-term capital gains in excess of realized
net long-term capital losses, if any. As a result, these earnings will not be available to fund new investments, and we will need additional
capital to fund growth in our investment portfolio. If we fail to obtain additional capital, we could be forced to curtail or cease new
investment activities, which could adversely affect our business, operations, and results. Even if available, if we are not able to obtain
such capital on favorable terms, it could adversely affect our net investment income.

A disruption or downturn in the capital markets and the credit markets could impair our ability to raise capital and negatively affect our business.

We may be materially affected by market, economic,
and political conditions globally and in the jurisdictions and sectors in which we invest or operate, including conditions affecting interest
rates and the availability of credit. Unexpected volatility, illiquidity, governmental action, currency devaluation, or other events in
the global markets in which we directly or indirectly hold positions could