Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 112

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 112
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 lender
may impose specific restrictions as a condition to borrowing. The credit facility fees may include upfront structuring fees and ongoing
commitment fees (including fees on amounts undrawn on the facility) in addition to the traditional interest expense on amounts borrowed.
The credit facility may involve a lien on our assets. Similarly, to the extent we issue shares of preferred stock or notes, we may be
subject to fees, covenants, and investment restrictions required by a national securities rating agency, as a result. Such covenants and
restrictions imposed by a rating agency or lender may include asset coverage or portfolio composition requirements that are more stringent
than those imposed on us by the 1940 Act. While it is not anticipated that these covenants or restrictions will significantly impede the
Adviser in managing our portfolio in accordance with our investment objectives and policies, if these covenants or guidelines are more
restrictive than those imposed by the 1940 Act, we would not be able to utilize as much leverage as we otherwise could have, which could
reduce our investment returns. In addition, we expect that any notes we issue or credit facility we enter into would contain covenants
that may impose geographic exposure limitations, credit quality minimums, liquidity minimums, concentration limitations, and currency
hedging requirements on us. These covenants would also likely limit our ability to pay distributions in certain circumstances, incur additional
debt, change fundamental investment policies, and engage in certain transactions, including mergers and consolidations. Such restrictions
could cause the Adviser to make different investment decisions than if there were no such restrictions and could limit the ability of
the board of directors and our stockholders to change fundamental investment policies.

While we cannot control the market value of our
investments, the Adviser can determine to draw on our planned leverage facility to purchase new assets at a time of market dislocation.
Such purchases, if made, can mitigate price drops in the current portfolio by making new asset purchases at a discount. Further, such
purchases can potentially contribute to a higher increase in net asset value of the portfolio upon a market rebound than if the purchases
were not made. Our willingness to utilize leverage, and the amount of leverage we incur, will depend on many factors, the most important
of which are investment outlook, market conditions, and interest rates. Successful use of a leveraging strategy may depend on our ability
to predict correctly interest rates and market movements, and there is no assurance that a