Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 111

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 111
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 required by law or otherwise to sell a portion of our investments to repay some debt or redeem shares of preferred
stock (if any) 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 of an amount necessary to continue to qualify as a RIC for U.S. federal income tax purposes.
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.

Certain 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 Series A Term 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 of our outstanding senior securities representing indebtedness plus the aggregate liquidation preference of
any outstanding shares of preferred stock.

We may enter into revolving facilities that will
allow us to draw capital in the case that current cash available to pay dividends is lower than our anticipated run-rate cash dividend,
or in the case that asset values in the CLO market fall in a way as to make new investments attractive. The Adviser will decide whether
or not it is beneficial to us to use such leverage at any given time. Such facilities would be committed, but subject to certain restrictions
that may not allow us to draw capital even if the Adviser deems it favorable to do so. Such facilities, if drawn, would become senior
in priority to our common shares. The facilities would also earn an undrawn commitment fee that we would pay on an ongoing basis, regardless
of whether we draw on the facilities or not.

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In connection with any credit facility, the