Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 113

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 113
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 leveraging strategy will be successful during
any period in which it is employed. Any leveraging cannot be achieved until the proceeds resulting from the use of leverage have been
invested in accordance with our investment objectives and policies. See “Risk Factors — Risks Related to Our Investments — 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.”

Preferred Stock.We are authorized
to issue 25,000,000 shares of preferred stock and we may issue preferred stock within our first twelve months following the completion
of this offering. If we issue preferred stock, costs of the offering will be borne immediately at such time by holders of our common stock
and result in a reduction of the NAV per share of our common stock at that time. Under the requirements of the 1940 Act, we must, immediately
after the issuance of any preferred stock, have an “asset coverage” of at least 200%. Asset coverage means the ratio by which
the value of our total assets, less all liabilities and indebtedness not represented by senior securities (as defined in the 1940 Act),
bears to the aggregate amount of senior securities representing our indebtedness, if any, plus the aggregate liquidation preference of
the preferred stock. If we seek a rating of the preferred stock, additional asset coverage requirements, which may be more restrictive
than those imposed by the 1940 Act, may be imposed.

Derivative Transactions. We may
engage in Derivative Transactions from time to time. To the extent we engage in Derivative Transactions, we expect to do so to hedge against
interest rate, credit and/or other risks, or for other investment or risk management purposes. We may use Derivative Transactions for
investment purposes to the extent consistent with our investment objectives if the Adviser deems it appropriate to do so. We may purchase
and sell a variety of derivative instruments, including exchange-listed and OTC options, futures, forward contracts, options on futures,
swaps and similar instruments, various interest rate transactions, such as swaps, caps, floors, or collars, and credit default swaps.
We also may purchase and sell derivative instruments that combine features of these instruments. We also may purchase and sell derivative
instruments that combine features of these instruments. Collectively, we refer to these financial management techniques as “Derivative
Transactions.” Our use of Derivative Transactions, if any, will generally be deemed to create leverage for us and involves significant
ris