Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 143

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 143
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 her shares, which could
result in shareholders having to pay higher taxes in the future when shares are sold, even when shares are sold at a loss from the original
investment. No assurance can be given that we will be able to declare such distributions in future periods, and our ability to declare
and pay distributions will be subject to a number of factors, including our results of operations.

At times, in order to maintain a stable level
of distributions, we may pay out less than all of our investment income or pay out accumulated undistributed income in addition to 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