Company: PDCC
Filing Date: 2025-09-19
Form Type: 424B2
Source: 0001214659-25-013974
Chunk: 164

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-19
Form: 424B2
Chunk 164
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 interest accrued but not collected) less all
of our liabilities (including accrued expenses, the aggregate liquidation preference of our preferred stock, borrowings and interest
payables) by the total number of outstanding shares of our common stock on a monthly basis (or more frequently, as appropriate, such
as with respect to an offering). See “Determinations in Connection with an Offering” below. The most significant
estimate inherent in the preparation of our financial statements is the valuation of investments and the related amounts of unrealized
appreciation and depreciation of investments recorded. There is no single method for determining fair value in good faith. As a result,
determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing
a consistently applied valuation process for the types of investments we make. Rule 2a-5 under the 1940 Act establishes requirements
for determining fair value in good faith for purposes of the 1940 Act. Pursuant to Rule 2a-5, our board of directors has elected
to designate the Adviser as “valuation designee” to perform fair value determinations in respect of our portfolio investments
that do not have readily available market quotations. We account for our investments in accordance with GAAP, and fair value our investment
portfolio in accordance with the provisions of the FASB ASC Topic 820 Fair Value Measurements and Disclosures of the Financial
Accounting Standards Board’s Accounting Standards Codification, as amended, which defines fair value, establishes a framework for
measuring fair value, and requires enhanced disclosures about fair value measurements. Fair value is the estimated amount that would
be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement
date.

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In valuing our investments in CLO debt, CLO equity
and loan accumulation facilities, the Adviser considers a variety of relevant factors, including price indications from multiple dealers
or, as applicable, a third-party pricing service, recent trading prices for specific investments, recent purchases and sales known to
the Adviser in similar securities, and output from a third-party financial model. The third-party financial model contains detailed information
on the characteristics of CLOs, including recent information about assets and liabilities, and is used to project future cashflows. Key
inputs to the model, including assumptions for future loan default rates, recovery rates, prepayment rates, reinvestment rates, and discount
rates are determined by considering