Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 113

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 113
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 leverage, which includes the Series A Term Preferred Stock,
represented approximately 24.3% of our total assets. As of June 30, 2025, our asset coverage ratio in respect of our outstanding preferred
stock, calculated pursuant to Section 18 of the 1940 Act, was 396% and we had no amounts drawn under a credit facility. In the event we
fail to meet our applicable asset coverage ratio requirements, we may not be able to incur additional debt and/or issue additional preferred
stock, and could be required by law or otherwise to sell a portion of our investments to repay some debt or redeem shares of preferred
stock (if any) when it is disadvantageous to do so, which could have a material adverse effect on our operations, and we may not be able
to make certain distributions or pay dividends of an amount necessary to continue to qualify as a RIC for U.S. federal income tax purposes.
In addition, we may borrow for temporary or other purposes as permitted under the 1940 Act, which indebtedness would be in addition to
the asset coverage requirements described above.

Certain instruments that create leverage are generally
considered to be senior securities under the 1940 Act. With respect to senior securities representing indebtedness (i.e., borrowing
or deemed borrowing), other than temporary borrowings as defined under the 1940 Act, we are required under current law to have an asset
coverage of at least 300%, as measured at the time of borrowing and calculated as the ratio of our total assets (less all liabilities
and indebtedness not represented by senior securities) over the aggregate amount of our outstanding senior securities representing indebtedness.
With respect to senior securities that are stocks (i.e., shares of preferred stock, including the Series A Term Preferred Stock),
we are required under current law to have an asset coverage of at least 200%, as measured at the time of the issuance of any such shares
of preferred stock and calculated as the ratio of our total assets (less all liabilities and indebtedness not represented by senior securities)
over the aggregate amount of our outstanding senior securities representing indebtedness plus the aggregate liquidation preference of
any outstanding shares of preferred stock.

We may enter into revolving facilities that will
allow us to draw capital in the case that current cash available to pay dividends is lower than our anticipated run-rate cash dividend,
or in the case that asset values in the CLO market fall in a way as to make new investments attractive. The Adviser will decide whether