Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 29

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 29
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 return at least equal to that of the investment repaid, our investment performance will be adversely impacted.                        |

| · | Reinvestment Risk. CLOs will typically generate cash from asset repayments and sales that                                                         
 may be reinvested in substitute assets, subject to compliance with applicable investment tests. If the CLO collateral manager causes the          
 CLO to purchase substitute assets at a lower yield than those initially acquired (for example, during periods of loan compression or as           
 may be required to satisfy a CLO’s covenants) or sale proceeds are maintained temporarily in cash, it would reduce the excess interest-related    
 cash flow, thereby having a negative effect on the fair value of our assets and the market value of our securities. In addition, the reinvestment 
 period for a CLO may terminate early, which would cause the holders of the CLO’s securities to receive principal payments earlier                 
 than anticipated. There can be no assurance that we will be able to reinvest such amounts in an alternative investment that provides a            
 comparable return relative to the credit risk assumed.                                                                                            |

| · | Counterparty Risk. We may be exposed to counterparty risk, which could make it difficult                              
 for us or the CLOs in which we invest to collect on obligations, thereby resulting in potentially significant losses. |

| · | CLO Warehouse Risk. The Company will invest in participations in CLO Warehouses provided                                                  
 for the purposes of enabling the borrowers to acquire assets (“Collateral”) which are ultimately intended to be used to collateralize     
 securities to be issued pursuant to a CLO transaction. The Company’s participation in any CLO Warehouse may take the form of notes        
 (“Warehouse Equity”) which are subordinated to the interests of one or more senior lenders under the CLO Warehouse. If the                
 relevant CLO transaction does not proceed for any reason (which may include a decision on the part of the CLO Manager not to proceed with 
 the closing of such transaction (“closing”)), the realized value of the Collateral may be insufficient to repay any outstanding           
 amounts owing to the Company in respect of the Warehouse Equity, after payments have been made to the senior lenders under the terms of   
 the CLO Warehouse, with the consequence that the Company may not receive back all or any of its investment in the CLO Warehouse. This     
 shortfall may be attributable to, amongst other things, a fall in the value of the Collateral between the date of the Company’s           
 participation in the CLO Warehouse and the date that