Company: PDCC
Filing Date: 2025-06-10
Form Type: 497AD
Source: 0001214659-25-009033
Chunk: 0

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-06-10
Form: 497AD
Chunk 0
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Filed pursuant to Rule 497

File No. 333-275147

Rule 482ad

Market Commentary Closing Price Per Share ($) In May, the U.S. leveraged loan market posted its strongest monthly performance in 17 months, gaining 1.55% and bringing the year-to-date return to 1.99%. The rally was driven by a risk-on tone, with lower-rated loans, including CCCs, outperforming. Prices recovered significantly, with the weighted average bid rising to 96.70 by May 31?up 229 basis points from the April 9 low? effectively returning to pre-Liberation Day levels. Investor sentiment shifted notably mid-month as retail outflows halted, ending a 10-week redemption streak. The share of loans priced at par or higher jumped to 27%, up from just 4% at the end of April, marking the first repricing wave since the sell-off. For context, 2025 began with a wave of repricing's totalling $150 billion in January, when approximately 65% of the loan market was priced at par or higher. Although new issuance activity picked up from April's lows, overall year-to-date volume lags the 2024 pace by 24%, at $179 billion, due to a sharp drop in refinancing's. New loans issued to finance M&A activity totals $66.8 billion in 2025, up 45% from this point last year. Defaults remained flat month over month, at 0.74% using Chapter 11 as the proxy and 4.36% when including distressed exchanges. May saw the CLO market bounce back strongly from the sell-off in April, with the reduction in political headline risk. While Equity trading volume slowed post Liberation Day, as there were no forced sellers, the reduction in NAV saw prices marked down significantly. However with the loan market rallying and the demand for long CLOs still being strong, we saw a significant pickup in trading volume in May. This trading led to a bounce back in CLO Equity prices, to the levels seen in March. Shorter Equity remains slightly cheaper here, as NAVs are not fully back to their Q1 level. Further up the capital structure we have also seen a rally. Almost all tranches are tighter on a 2 month basis, and some stronger BBs are back to their YTD tights. The one place where the rally back has been slightly slower is in AAAs where the primary tights have just gone