Company: PDCC
Filing Date: 2025-09-19
Form Type: 424B2
Source: 0001214659-25-013974
Chunk: 187

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-19
Form: 424B2
Chunk 187
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 this purpose, is any U.S. person that possesses (actually or constructively) (a) 10% or more of the combined voting
power of all classes of shares of a foreign corporation, or (b) 10% or more of the total value of all classes of stock of a foreign corporation.
If we are treated as receiving a deemed distribution from a CFC, we will be required to include such deemed distribution in our investment
company taxable income regardless of whether we receive any actual distributions from such CFC, and we must distribute such income in
order to satisfy the Excise Tax Distribution Requirement and the Distribution Requirement. Applicable Treasury Regulations generally treat
our income inclusion with respect to a CFC as qualifying income for purposes of determining our ability to be subject to tax as a RIC
either if (i) there is a distribution out of the earnings and profits of the CFC that are attributable to such income inclusion or (ii)
such inclusion is derived with respect to our business of investing in stock, securities, or currencies. As such, we may limit and/or
manage our holdings in issuers that could be treated as CFCs in order to limit our tax liability or maximize our after-tax return from
these investments.

FATCA generally imposes a U.S. federal withholding
tax of 30% on U.S. source periodic payments, including interest and dividends to certain non-U.S. entities, including certain non-U.S.
financial institutions and investment funds, unless such non-U.S. entity complies with certain reporting requirements regarding its United
States account holders and its United States owners. Most CLOs in which we invest will be treated as non-U.S. financial entities for this
purpose, and therefore will be required to comply with these reporting requirements to avoid the 30% withholding. If a CLO in which we
invest fails to properly comply with these reporting requirements, it could reduce the amounts available to distribute to equity and junior
debt holders in such CLO, which could materially and adversely affect our operating results and cash flows.

Under Section 988 of the Code, gains or losses
attributable to fluctuations in exchange rates between the time we accrue income, expenses or other liabilities denominated in a foreign
currency and the time we actually collect such income or pay such expenses or liabilities are generally treated as ordinary income or
loss. Similarly, gains or losses on foreign currency forward, futures and options contracts, similar financial instruments as well as
upon the disposition of debt