Company: PDCC
Filing Date: 2025-09-19
Form Type: 424B2
Source: 0001214659-25-013974
Chunk: 42

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-19
Form: 424B2
Chunk 42
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 from the secondary             
 markets via auctions and over-the-counter direct trades. The Investment Origination Engine incorporates a memory of relevant trades and       
 pricing information related to the trades of CLO tranches over time, allowing the Adviser to approach the market in a highly informed         
 manner.                                                                                                                                       |

| · | Efficient vehicle for gaining exposure to CLO securities. We believe that we are structured                                                
 as an efficient vehicle for investors to gain exposure to CLO securities and related investments. 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.                                                                                     |

| 9 |

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.

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