Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 147

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 147
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 current
net investment income. Our expenses will be accrued each day. To the extent that our net investment income for any year exceeds the total
monthly distributions paid during the year, we intend to make a special distribution at or near year-end of such excess amount as may
be required. Each taxable year, we expect that all of our investment company taxable income will be distributed.

Capital Gains Distributions

The 1940 Act currently limits the number of times
we may distribute long-term capital gains in any tax year, which may increase the variability of our distributions and result in certain
distributions being more weighted to long-term capital gains eligible for favorable income tax rates. In the future, the Adviser may seek
approval of our board of directors to implement a managed distribution plan for us. The managed distribution plan would be implemented
pursuant to an exemptive order that we would intend to obtain from the SEC granting an exemption from Section 19(b) of the 1940 Act and
Rule 19b-1 thereunder to permit us to include long-term capital gains as a part of our regular distributions to holders of our common
stock more frequently than would otherwise be permitted by the 1940 Act (generally once or twice per year). If we implement a managed
distribution plan, we would do so without a vote of holders of our common stock. There can be no assurance that we will implement such
a plan, nor can there be any assurance that SEC relief will be obtained.

At least annually, we intend to distribute any
net capital gains (which is the excess of net long-term capital gains over net short-term capital loss) or, alternatively, to retain all
or a portion of the year’s net capital gains and pay federal income tax on the retained gain. As provided under federal tax law,
if we retain all or a portion of such gains and make an election, holders of our common stock of record as of the end of our taxable year
will include their attributable share of the retained gain in their income for the year as a long-term capital gain, and will be entitled
to a tax credit or refund for the tax deemed paid on their behalf by us.

RIC Tax Qualification

We intend to elect to be treated and to qualify
each year as a RIC under the Code. Accordingly, we satisfy certain requirements relating to sources of our income and diversification
of our total assets and to satisfy certain distribution requirements, so as to maintain our RIC status and to avoid paying