Company: PDCC
Filing Date: 2025-09-03
Form Type: N-CSRS
Source: 0001398344-25-017467
Chunk: 28

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-03
Form: N-CSRS
Chunk 28
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 there were no transactions in the
Fund’s shares.

7. MANDATORY REDEEMABLE PREFERRED STOCK

As of June 30, 2025, there were 25,000,000 shares
of series A Term Preferred Stock (“Preferred Stock”) authorized, of which 1,380,000 shares were issued and outstanding with
a par value of $0.001 per share. Any related deferred offering costs are amortized over the term of the Preferred Stock.

The Company has accounted for its Preferred Stock as a liability under
ASC 480 due to their mandatory redemption requirements.

Except where otherwise stated in the 1940 Act or the
Company’s certificate of incorporation, each holder of Preferred Stock will be entitled to one vote for each share of preferred
stock held on each matter submitted to a vote of the Company’s stockholders. The Company’s preferred stockholders and common
stockholders will vote together as a single class on all matters submitted to the Company’s stockholders. Additionally, the Company’s
preferred stockholders will have the right to elect two Preferred Directors at all times, while the Company’s preferred stockholders
and common stockholders, voting together as a single class, will elect the remaining members of the Board.

Series A Term Preferred Stock

The Company is required to redeem all outstanding
shares of the Series A Term Preferred Stock on December 31, 2029 at a redemption price of $25 per share, or the “Liquidation Preference,”
plus accumulated but unpaid dividends, if any, to, but excluding, the Mandatory Redemption Date (as defined below). At any time on or
after December 31, 2026, we may, at our sole option, redeem the outstanding shares of the Series A Term Preferred Stock at a redemption
price per share equal to the Liquidation Preference plus accumulated but unpaid dividends, if any, to, but excluding, the Redemption Date
(as defined below). If we fail to maintain asset coverage (as defined in Section 18(h) of the 1940 Act) of at least 200%, we will be required
to redeem the number of shares of our preferred stock (which at our discretion may include any number or portion of the Series A Term
Preferred Stock) that, when combined with any debt securities redeemed for failure to maintain the asset coverage required by the indenture
governing such securities, (1) results in us having asset coverage of at least 200%, or (2) if fewer, the maximum number of