Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 89

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 89
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 in work-out situations.

Also, in October 2014, six federal
agencies (the Federal Deposit Insurance Corporation, or the “FDIC,” the Comptroller of the Currency, the Federal Reserve Board,
the SEC, the Department of Housing and Urban Development and the Federal Housing Finance Agency) adopted joint final rules implementing
certain credit risk retention requirements contemplated in Section 941 of the Dodd-Frank Act, or the “Final U.S. Risk Retention
Rules.” These rules were published in the Federal Register on December 24, 2014. With respect to the regulation of CLOs, the Final
U.S. Risk Retention Rules require that the “sponsor” or a “majority owned affiliate” thereof (in each case as
defined in the rules), will retain an “eligible vertical interest” or an “eligible horizontal interest” (in each
case as defined therein) or any combination thereof in the CLO in the manner required by the Final U.S. Risk Retention Rules.

The Final U.S. Risk Retention Rules
became fully effective on December 24, 2016, or the “Final U.S. Risk Retention Effective Date,” and to the extent applicable
to CLOs, the Final U.S. Risk Retention Rules contain provisions that may adversely affect the return of our investments. On February 9,
2018, a three judge panel of the United States Court of Appeals for the District of Columbia Circuit, or the “DC Circuit Court,”
rendered a decision in The Loan Syndications and Trading Association v. Securities and Exchange Commission and Board of Governors of the
Federal Reserve System, No. 1:16-cv-0065, in which the DC Circuit Court held that open market CLO collateral managers are not “securitizers”
subject to the requirements of the Final U.S. Risk Retention Rules, or the “DC Circuit Ruling.” Thus, collateral managers
of open market CLOs are no longer required to comply with the Final U.S. Risk Retention Rules at this time.

There can be no assurance or representation
that any of the transactions, structures or arrangements currently under consideration by or currently used by CLO market participants
will comply with the Final U.S. Risk Retention Rules to the extent such rules are reinstated or otherwise become applicable to open market
CLOs. The ultimate impact of the Final U.S. Risk Retention Rules on the loan securitization market and