Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 28

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 28
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1) a CLO in which we invest, (2) an underlying asset of any such CLO, or                                                    
 (3) any other type of credit investment in our portfolio declines in value or fails to pay interest or principal when due because the        
 issuer or debtor, as the case may be, experiences a decline in its financial status, our income, NAV, and/or market price would be adversely 
 impacted.                                                                                                                                    |

| 15 |

| · | Subordinated Securities. CLO equity securities that we may acquire are subordinated to more                                               
 senior tranches of CLO debt. CLO equity securities are subject to increased risks of default relative to the holders of superior priority 
 interests in the same CLO.                                                                                                                |

| · | High-Yield Investment Risk. The CLO equity securities that we hold and intend to acquire                                                  
 are typically unrated and are therefore considered speculative with respect to timely payment of interest and repayment of principal.     
 The collateral of underlying CLOs are also typically higher-yield, sub-investment grade investments. Investing in CLO equity securities   
 and other high-yield investments involves greater credit and liquidity risk than investment grade obligations, which may adversely impact 
 our performance.                                                                                                                          |

| · | Leverage Risk. The use of leverage, whether directly or indirectly through investments such                                              
 as CLO equity securities that inherently involve leverage, may magnify our risk of loss. CLO equity securities are very highly leveraged 
 (with CLO equity securities typically being leveraged nine to 13 times), and therefore the CLO securities that we hold and in which we   
 intend to invest are subject to a higher degree of loss since the use of leverage magnifies losses.                                      |

| · | Liquidity Risk. The market for CLO securities is more limited than the market for other                                                       
 credit related investments. As such, we may not be able to sell such investments quickly, or at all. If we are able to sell such investments, 
 the prices we receive may not reflect our assessment of their fair value or the amount paid for such investments by us.                       |

| · | Prepayment Risk. The assets underlying the CLO securities in which we intend to invest are                                                    
 subject to prepayment by the underlying corporate borrowers. In addition, the CLO securities and related investments in which we invest       
 are subject to prepayment risk. If we or a CLO collateral manager are unable to reinvest prepaid amounts in a new investment with an expected 
 rate of