Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 56

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 56
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 or deemed borrowings), 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), 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.

If our asset coverage declines below 300% (or
200%, as applicable), we would not be able to incur additional debt or issue additional preferred stock, and could be required by law
to sell a portion of our investments to repay some debt or redeem shares of preferred stock when it is disadvantageous to do so, which
could have a material adverse effect on our operations. In this instance, we might not be able to make certain distributions or pay dividends
of an amount necessary to continue to be subject to tax as a RIC or to avoid incurring a Fund level tax. Further, if our asset coverage
falls below 200%, we may be prevented from declaring dividends by certain sections of the 1940 Act. The amount of leverage that we employ
will depend on the Adviser’s and our board of directors’ assessment of market and other factors at the time of any proposed
borrowing. We cannot assure you that we will be able to obtain credit at all or on terms acceptable to us.

In addition, any debt facility into which we may
enter would likely impose financial and operating covenants that restrict our business activities, including limitations that could hinder
our ability to finance additional loans and investments or to make the distributions required to maintain our ability to be subject to
tax as a RIC under Subchapter M of the Code.

The following table is furnished in response to
the requirements of the SEC and illustrates the effect of leverage on returns from an investment in our common stock assuming various
annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns