Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 63

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 63
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 the event of a default or liquidation. Any such workout or restructuring is likely
to lead to a substantial reduction in the interest rate of such asset and/or a substantial write-down or write-off of all or a portion
the principal of such asset. Any such reduction in interest rates or principal will negatively affect the fair value of our portfolio.

We are subject to risks associated with CLO Warehouses.

We may invest in in CLO Warehouses provided for
the purposes of enabling the borrowers to acquire assets (“Collateral”) which are ultimately intended to be used to collateralize
securities to be issued pursuant to a CLO transaction. Our participation in any CLO Warehouse may take the form of notes (“Warehouse
Equity”) which are subordinated to the interests of one or more senior lenders under the CLO Warehouse.

If the relevant CLO transaction does not proceed
for any reason (which may include a decision on the part of the CLO Manager not to proceed with the closing of such transaction (“closing”)),
the realized value of the Collateral may be insufficient to repay any outstanding amounts owed to us in respect of the Warehouse Equity,
after payments have been made to the senior lenders under the terms of the CLO Warehouse, with the consequence that we may not receive
back all or any of its investment in the CLO Warehouse. This shortfall may be attributable to, amongst other things, a fall in the value
of the Collateral between the date of our participation in the CLO Warehouse and the date that the Collateral is realized.

In addition, there are certain circumstances in
which the senior lender(s) under a CLO Warehouse may require the sale or liquidation of Collateral prior to closing (for example, in the
event that the value of the Collateral falls below a prescribed threshold). In this event, the realized value of the Collateral may be
insufficient to repay any outstanding amounts owed to us in respect of the Warehouse Equity, after payments have been made to the senior
lenders under the terms of the CLO Warehouse, with the consequence that we may not receive back all or any of its investment in the CLO
Warehouse.

If the closing of a CLO transaction occurs, some
or all of the Collateral may be re-priced for the purposes of determining the final repayment amount due under the CLO Warehouse, or the
rate at which Warehouse Equity converts into securities issued by the relevant CLO vehicle. The effect of such re-pricing may be that
any realized and