Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 55

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 55
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 prepaid more quickly than expected. Prepayment
rates are influenced by changes in interest rates and a variety of factors beyond our control and consequently cannot be accurately predicted.
Early prepayments give rise to increased reinvestment risk, as a CLO collateral manager might realize excess cash from prepayments earlier
than expected. If a CLO collateral manager is unable to reinvest such cash in a new investment with an expected rate of return at least
equal to that of the investment repaid, this may reduce our net income and the fair value of that asset.

We may leverage our portfolio, which would magnify the potential for gain or loss on amounts invested and increase the risk of investing in us.

We may incur leverage, directly or indirectly,
through one or more special purpose vehicles, indebtedness for borrowed money, as well as leverage in the form of Derivative Transactions,
preferred stock, debt securities, and other structures and instruments, in significant amounts and on terms that the Adviser and our board
of directors deem appropriate, subject to applicable limitations under the 1940 Act. Such leverage may be used for the acquisition and
financing of our investments, to pay fees and expenses, and for other purposes. Such leverage may be secured or unsecured. Any such leverage
does not include leverage embedded or inherent in the CLO structures in which we invest or derivative instruments in which we may invest.

To the extent that we employ additional leverage,
such leverage will have a greater effect on our portfolio. Accordingly, any event that adversely affects the value of an investment would
be magnified to the extent leverage is utilized. For instance, any decrease in our income would cause net income to decline more sharply
than it would have had we not borrowed. Such a decline could also negatively affect our ability to make distributions and other payments
to our securityholders. Leverage is generally considered a speculative investment technique. Our ability to service any debt that we incur
will depend largely on our financial performance and will be subject to prevailing economic conditions and competitive pressures. The
cumulative effect of the use of leverage with respect to any investments in a market that moves adversely to such investments could result
in a substantial loss that would be greater than if our investments were not leveraged.

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As a registered closed-end management investment
company, we will generally be required to meet certain asset coverage requirements, as defined under the 1940 Act, with respect to any
senior securities. With respect to senior securities representing indebtedness (i.e., borrowings