Company: PDCC
Filing Date: 2025-09-19
Form Type: 424B2
Source: 0001214659-25-013974
Chunk: 194

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-19
Form: 424B2
Chunk 194
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 profits will be treated by a stockholder as a return of capital which is applied
against and reduces the stockholder’s tax basis in our shares. To the extent that the amount of any such distribution exceeds a
stockholder’s tax basis in our shares, the excess will be treated by the stockholder as gain from a sale or exchange of the shares.
Distributions of gains from the sale or other disposition of our investments that we owned for one year or less are characterized as ordinary
income.

We may elect to retain our net capital gains or
a portion thereof for investment and be subject to tax at corporate rates on the amount retained. In such case, we may designate the retained
amount as undistributed net capital gains in a notice to our stockholders who will be treated as if each received a distribution of the
pro rata share of such net capital gain, with the result that each stockholder will: (i) be required to report the pro rata share of such
net capital gain on the applicable tax return as long-term capital gains; (ii) receive a refundable tax credit for the pro rata share
of tax paid by us on the net capital gain; and (iii) increase the tax basis for the shares of our stock held by an amount equal to the
deemed distribution less the tax credit.

Selling stockholders will generally recognize
gain or loss in an amount equal to the difference between the amount realized on the sale and the stockholder’s adjusted tax basis
in the shares sold assuming they hold shares as capital assets. The gain or loss will generally be a capital gain or loss. The current
maximum tax rate applicable to net capital gains recognized by individuals and other non-corporate taxpayers is: (i) the same as the maximum
ordinary income tax rate for gain recognized on the sale of capital assets held for one year or less; or (ii) currently set at a maximum
rate of 20% (depending on whether the stockholder’s income exceeds certain threshold amounts) for gains recognized on the sale of
capital assets held for more than one year (as well as certain capital gain dividends).

Any loss realized upon the sale or exchange of
shares of our stock with a holding period of six months or less will be treated as a long-term capital loss to the extent of any capital
gain dividends received (or amounts designated as undistributed capital gains) with respect to such shares. In addition, all or a portion
of a loss realized by a stockholder on a