Pearl Diver Credit Company Inc. Announces Second Quarter 2026 Financial Results
Rhea-AI Summary
Pearl Diver Credit Company (NYSE: PDCC, PDPA) reported second quarter 2026 results for the period ended June 30, 2026. Net asset value (NAV) per common share rose to $11.15 from $10.48 on March 31, 2026. GAAP net income was $8.5 million, or $1.23 per share, versus a net loss of $22.5 million, or $3.28 per share, in the prior quarter, driven by a net change in unrealized appreciation of $6.7 million. Net investment income was $1.9 million, or $0.28 per share, on investment income of $4.2 million and expenses of $2.2 million. Recurring CLO cash flows were $8.8 million. Leverage was $38.4 million, or 32.9% of total assets. As of July 31, 2026, NAV per share was $10.96, and recurring CLO cash flows through August 15, 2026 were $7.3 million. The company declared monthly dividends of $0.13 per share for September, October, and November 2026.
Positive
- NAV per share increased to $11.15 from $10.48 QoQ
- GAAP net income of $8.5 million vs $22.5 million loss prior quarter
- Unrealized investments swing to $6.7 million appreciation vs $25.1 million depreciation
- Leverage ratio improved to 32.9% of total assets from 35.0%
- Declared monthly dividends of $0.13 per share for Sep–Nov 2026
Negative
- Net investment income declined to $1.9 million from $2.6 million QoQ
- Investment income fell to $4.2 million from $4.8 million prior quarter
- Recurring CLO cash flows decreased to $8.8 million from $10.4 million
- Weighted average CLO effective yield declined to 10.33% from 11.27%
News Explained
Existing common holders face percentage-ownership dilution from the completed share issuance, absent offsetting changes.
The completed second-quarter disclosure reports that Pearl Diver Credit Company issued
An at-the-market offering lets an issuer sell new shares gradually into the open market at prevailing prices rather than in one single priced deal.
Reported leverage was lower at
The portfolio’s weighted average effective yield based on amortized cost also declined to
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Company to Host Conference Call and Webcast at 10:00 AM ET Today -
"The recovery we saw across CLO equity markets this quarter came through clearly in our results, with net asset value strengthening as spreads tightened across the capital structure," said Indranil Basu, Chief Executive Officer of Pearl Diver Credit Company. "We were able to take advantage of that backdrop to execute a larger refinancing programme and further reduce the cost of debt. While we are not calling this a turn in the cycle, we are more constructive about the opportunities we see ahead in CLO equity. Moving forward, we will continue to execute on our disciplined investment strategy in order to continue to create value for our shareholders."
Second Quarter 2026 Highlights
- Net asset value per share of common stock was
$11.15 $10.48 - GAAP net income for the quarter was
$8.5 million $1.23 $22.5 million $3.28 - Net investment income for the quarter was
$1.9 million $0.28 $2.6 million $0.39 - Investment income for the quarter was
$4.2 million $0.60 $4.8 million $0.70 - Expenses for the quarter were
$2.2 million $0.32 $2.1 million $0.31 - Net change in unrealized appreciation on investments was
$6.7 million $0.97 $25.1 million $3.67 - Recurring cash flows from CLO investments were
$8.8 million $1.27 $10.4 million $1.53 - Issued 65,959 shares of common stock via our at-the-market offering, for net proceeds of approximately
$0.7 million - The Company had leverage of
$38.4 million 32.9% of total assets, as of June 30, 2026, compared to leverage of$39.5 million 35.0% of total assets, as of March 31, 2026. - As of June 30, 2026:
- The weighted average effective yield of the Company's collateralized loan obligation ("CLO") portfolio, based on amortized cost, was
10.33% , compared to11.27% as of March 31, 2026. 99.9% of CLOs in the portfolio have reinvestment end dates from 2026 through 2030, resulting in upside potential as CLO managers can take advantage of market volatility to reinvest in loans at favorable prices.
- The weighted average effective yield of the Company's collateralized loan obligation ("CLO") portfolio, based on amortized cost, was
- As of June 30, 2026, on a look-through basis, and based on the most recent trustee reports received by such date:
- The Company, through its CLO investments, had indirect exposure to 1,380 unique corporate obligors and over 1,800 underlying loans, totaling
$26.9 billion - The largest look-through obligor represented
0.7% of the loans underlying the Company's CLO equity portfolio. - The top ten largest look-through obligors together represented
4.2% of the loans underlying the Company's CLO portfolio.
- The Company, through its CLO investments, had indirect exposure to 1,380 unique corporate obligors and over 1,800 underlying loans, totaling
Third Quarter 2026 Update
- Net asset value per share of common stock was
$10.96 - Recurring cash flows from CLO investments through August 15, 2026 were
$7.3 million $1.05 - Declared monthly dividends of
$0.13
Conference Call
As previously announced, Pearl Diver Credit Company Inc. will host a conference call to discuss its second quarter 2026 results today, August 27, 2026 at 10:00 a.m. Eastern Time / 3:00pm
A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed online on the website.
About Pearl Diver Credit Company Inc.
Pearl Diver Credit Company Inc. (NYSE: PDCC, PDPA) is an externally managed, non-diversified, closed-end management investment company. Its primary investment objective is to maximize its portfolio's total return, with a secondary objective of generating high current income. The Company seeks to achieve these objectives by investing primarily in equity and junior debt tranches of CLOs collateralized by portfolios of sub-investment grade, senior secured floating-rate debt issued by a large number of distinct US companies across several industry sectors. The Company is externally managed by Pearl Diver Capital LLP. For more information, visit www.pearldivercreditcompany.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the prospectus and the Company's other filings with the SEC. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Investor Contact:
PR.IR@Pearldivercap.com
UK: +44 (0)20 3967 8032
US: +1 617 872 0945
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SOURCE Pearl Diver Credit Company Inc.