Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 108

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 108
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 CLO securities. We believe our closed-end fund                                                       
 structure allows the Adviser to take a long-term view from a portfolio management perspective and allows investors to access liquidity         
 through the exchange. As such, the Adviser can focus principally on maximizing long-term risk-adjusted returns for the benefit of stockholders 
 without the need to liquidate fund assets to meet redemptions.                                                                                 |

The Adviser has historically focused considerable
time and attention seeking to maximize value within their CLO equity tranche portfolios through CLO refinancings and resets. In a CLO
refinancing, typically only the interest rate spread on a CLO’s debt tranches are reduced, and most other terms of the CLO remain
unchanged. The reduction of a CLO’s cost of debt accrues to the benefit of the CLO’s equity investors, such as the Company.

| 60 |

In a CLO reset, the CLO’s indenture,
which sets forth the terms governing the CLO, is “re-opened” (e.g., the terms of the indenture and the various tranches
of the CLO can be re-negotiated). Among other potential benefits, resetting a CLO renews the reinvestment period on the CLO, typically
by up to five years. We believe that the ability to lengthen the term of our investments in CLO equity tranches is a key benefit of our
permanent structure and we believe many limited-life investment vehicles are not fully able to capture the value of this benefit.

In both resets and refinancings, there
are one-time transaction costs (e.g., dealer fees, attorney fees, and related costs) which typically reduce the next scheduled distribution
to the CLO’s equity tranche. The Adviser, when deciding whether or not to effect a refinancing or reset of a CLO, performs a cost-benefit
analysis that takes these costs into account. In general, a refinancing or reset of a CLO can increase cashflows to the equity positions
held by the Company by lowering the cost of the CLO’s liabilities.

| • | Long-term investment horizon. We believe in a long-term investment horizon for our portfolio.                                                   
 We seek to maximize the reinvestment periods of our CLOs wherever possible in the primary market. We also plan to extend, wherever appropriate, 
 the reinvestment periods of CLOs we own in the portfolio today. We do not plan to purchase CLOs with the primary goal to