Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 84

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 84
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. In addition, if we are unable
to repay amounts outstanding under any such debt financings and are declared in default or are unable to renew or refinance these debt
financings, we may not be able to make new investments or operate our business in the normal course. These situations may arise due to
circumstances that we may be unable to control, such as lack of access to the credit markets, a severe decline in the value of the U.S.
dollar, an economic downturn, or an operational problem that affects third parties or us, and could materially damage our business.

We may be more susceptible than a diversified fund to being adversely affected by any single corporate, economic, political, or regulatory occurrence.

We are classified as “non-diversified”
under the 1940 Act. As a result, we can invest a greater portion of our assets in obligations of a single issuer than a “diversified”
fund. We may therefore be more susceptible than a diversified fund to being adversely affected by any single corporate, economic, political
or regulatory occurrence. In particular, because our portfolio of investments may lack diversification among CLO securities and related
investments, we are susceptible to a risk of significant loss if one or more of these CLO securities and related investments experience
a high level of defaults on the collateral that they hold.

Regulations governing our operation as a registered closed-end management investment company affect our ability to raise additional capital and the way in which we do so. The raising of debt capital may expose us to risks, including the typical risks associated with leverage.

Under the provisions of the 1940 Act, we are permitted,
as a registered closed-end management investment company, to issue senior securities (including debt securities, preferred stock and/or
borrowings from banks or other financial institutions), provided we meet certain asset coverage requirements (i.e., 300% for senior
securities representing indebtedness and 200% in the case of the issuance of preferred stock under current law). See “— Risks Related to Our Investments — 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” for details concerning how asset coverage is calculated. If the value
of our assets declines, we may be unable to satisfy this test. If that happens, we may be required to sell a portion of our investments
and, depending on the nature of our leverage, repay a portion of our indebtedness at a time when such