Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 82

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 82
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 in income certain other amounts that we have not yet, and may not ever, receive in cash.

Since, in certain cases, we may recognize income
before or without receiving cash representing such income, we may have difficulty meeting the annual distribution requirement necessary
to maintain RIC tax treatment under the Code or entirely eliminate any corporate level tax. In addition, since our incentive fee is payable
on our income recognized, rather than cash received, we may be required to pay advisory fees on income before or without receiving cash
representing such income. Accordingly, we may have to sell some of our investments at times and/or at prices we would not consider advantageous,
raise additional debt or equity capital, or forego new investment opportunities for this purpose. If we are not able to obtain cash from
other sources, we may fail to qualify for RIC tax treatment and thus become subject to corporate-level income tax.

Our cash distributions to stockholders may change and a portion of our distributions to stockholders may be a return of capital.

The amount of our cash distributions may increase
or decrease at the discretion of our board of directors, based upon its assessment of the amount of cash available to us for this purpose
and other factors. Unless we are able to generate sufficient cash through the successful implementation of our investment strategy, we
may not be able to sustain a given level of distributions. Further, to the extent that the portion of the cash generated from our investments
that is recorded as interest income for financial reporting purposes is less than the amount of our distributions, all or a portion of
one or more of our future distributions, if declared, may comprise a return of capital. Accordingly, stockholders should not assume that
the sole source of any of our distributions is net investment income. Any reduction in the amount of our distributions would reduce the
amount of cash received by our stockholders and could have a material adverse effect on the market price of our shares. See “— Risks Related to Our Investments — Our investments are subject to prepayment risk” and “— Any unrealized losses we experience on our portfolio may be an indication of future realized losses, which could reduce our income available for distribution or to make payments on our other obligations.”

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Our stockholders may receive shares of our common stock as distributions, which could result in adverse tax consequences to them.

In order to satisfy certain annual distribution
requirements to maintain RIC tax treatment under Subchapter M of the Code, we may declare a large portion of a distribution in shares