Pearl Diver Credit Company Inc. Announces Third Quarter 2025 Financial Results
Rhea-AI Summary
Pearl Diver Credit Company (NYSE: PDCC) reported third quarter 2025 results for the period ended September 30, 2025 and will host a conference call today at 11:00 AM ET.
Key figures: NAV per share $16.89 (9/30/25) vs $18.19 (6/30/25); GAAP net loss $4.3M (‑$0.64/share); net investment income $3.0M ($0.44/share); investment income $5.4M ($0.80/share); recurring CLO cash flows $8.7M ($1.28/share) vs $8.0M prior quarter.
Portfolio: weighted average effective yield 13.07% (amortized cost); leverage $40.4M (25.7% of assets); broad look-through exposure to ~1,304 obligors and $25.6B of loans. Declared monthly dividends of $0.22 for Nov–Jan and issued ~28,366 shares for ~$0.5M net proceeds.
Positive
- Recurring CLO cash flows of $8.7M for Q3 2025
- Weighted average effective CLO yield of 13.07% (amortized cost)
- Look-through exposure to ~1,304 obligors across $25.6B of loans
Negative
- Net asset value per share down to $16.89 from $18.19 quarter-over-quarter
- GAAP net loss of $4.3M (‑$0.64 per share) in Q3 2025
- Unrealized depreciation of $6.9M for the quarter
News Market Reaction
On the day this news was published, PDPA declined 0.36%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Company to Host Conference Call and Webcast at 11:00 AM ET Today -
"Despite near-term industry headwinds associated with the First Brands bankruptcy, our portfolio delivered increased sequential recurring cash flows in excess of distributions and expenses," said Indranil Basu, Chief Executive Officer of Pearl Diver Credit Company. "While our net asset value per share at the end of the quarter was impacted by the tightening of loan spreads, our differentiated machine learning and data science-driven approach to CLO equity investing allowed us to acquire a number of new positions that we identified as attractive risk-adjusted opportunities. As we close out 2025 and as near-term headwinds begin to abate, we believe we remain well positioned to continue executing on our CLO equity investment strategy in order to create additional value for our shareholders."
Third Quarter 2025 Highlights
- Net asset value per share of common stock was
$16.89 $18.19 - GAAP net loss for the quarter was
$4.3 million $0.64 - Net investment income for the quarter was
$3.0 million $0.44 - Investment income for the quarter was
$5.4 million $0.80 - Expenses for the quarter were
$2.4 million $0.35 - Net change in unrealized depreciation on investments was
$6.9 million $1.02 $0.5 million $0.07 - Recurring cash flows from CLO investments for the quarter ended September 30, 2025 were
$8.7 million $1.28 $8.0 million $1.18 - The Company had leverage of
$40.4 million 25.7% of total assets as of September 30, 2025. As of June 30, 2025, leverage was$40.4 million 24.3% of total assets. - As of September 30, 2025:
- The weighted average effective yield of the Company's collateralized loan obligation ("CLO") portfolio, based on amortized cost, was
13.07% , compared to12.75% as of June 30, 2025, primarily due to portfolio rotation, where the Company traded out of certain long equity positions which were modelled at lower yields and invested in new positions at more attractive levels. 99.8% 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 September 30, 2025, 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 approximately 1,304 unique corporate obligors and over 1,900 underlying loans, totaling
$25.6 billion - The largest look-through obligor represented
0.6% of the loans underlying the Company's CLO equity portfolio.
- The Company, through its CLO investments, had indirect exposure to approximately 1,304 unique corporate obligors and over 1,900 underlying loans, totaling
The top ten largest look-through obligors together represented
Fourth Quarter 2025 Update
- Declared monthly dividends of
$0.22 - Through November 14, 2025, issued 28,366 shares of common stock via our at-the-market offering, for net proceeds of approximately
$0.5 million
Conference Call
As previously announced, Pearl Diver Credit Company Inc. will host a conference call to discuss its third quarter 2025 results today, November 18, 2025 at 11:00 a.m. Eastern Time / 4:00pm
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
US: +1 617 872 0945
View original content to download multimedia:https://www.prnewswire.com/news-releases/pearl-diver-credit-company-inc-announces-third-quarter-2025-financial-results-302617722.html
SOURCE Pearl Diver Credit Company Inc.
FAQ
What were Pearl Diver Credit Company (PDCC) third quarter 2025 NAV and GAAP results?
How much recurring cash flow did PDCC report from CLOs in Q3 2025?
What is PDCC's portfolio yield and leverage as of Sept 30, 2025?
Did PDCC declare dividends for Q4 2025 and early 2026?
Will PDCC discuss results on a conference call and how can investors access it?
Did PDCC raise capital through its at-the-market offering in Q4 2025?
