[497AD] Pearl Diver Credit Company Inc. 8.00% Series A Preferred Stock Due 2029 SEC Filing
Rhea-AI Filing Summary
Pearl Diver Credit Company Inc. reports a net asset value (NAV) of $125.61 million with NAV per share of $18.48 and a closing market price of $16.20, reflecting a -12.3% discount to NAV. The fund shows a current dividend yield of 16.3% with monthly distributions and a total market capitalization of $110.10 million. The portfolio holds 1,293 unique obligors across 1,834 underlying loans with an aggregate collateral balance of $24.43 billion and 4.9% in cash and short-term investments.
Holdings detail includes modest single-obligor weights (top 10 obligors total 4.6% of NAV) but notable portfolio concentration at the CLO level: the top 10 positions represent 38.6% of NAV and the top 10 CLO managers account for 58.6%. Industry exposures are led by Software at 8.1%, with the top 10 industries totaling 42.0% of NAV. All exposure is reported in USD.
Positive
- High current dividend yield of 16.3% with monthly payments
- Diversified obligor base: 1,293 unique underlying obligors across 1,834 loans
- Substantial underlying collateral: aggregate balance of $24.43 billion in loans
- Cash and short-term investments provide liquidity buffer: 4.9% of fund
Negative
- Market discount: shares trade at a -12.3% discount to NAV (NAV $18.48 vs price $16.20)
- Portfolio concentration: top 10 positions account for 38.6% of NAV
- CLO manager concentration: top 10 CLO managers represent 58.6% of NAV
- High yield may reflect elevated credit, valuation or liquidity risk inherent in CLO equity exposures
Insights
TL;DR High current yield and closed-end discount highlight income focus; portfolio shows broad obligor diversification but CLO-level concentration.
Pearl Diver Credit displays a sizable income profile with a 16.3% yield paid monthly while trading at a -12.3% discount to NAV. The fund's underlying collateral is large ($24.43 billion in loans) and spread across 1,293 obligors, which supports diversification at the borrower level. However, material weightings at the CLO position and manager layers (top 10 positions 38.6%, top 10 managers 58.6%) concentrate exposure to specific CLO structures and sponsors, which can drive NAV volatility depending on CLO manager performance and secondary loan market pricing.
TL;DR Broad obligor base mitigates single‑issuer shocks, but concentrated CLO holdings and high distribution yield point to elevated structural and market risk.
The portfolio shows depth at the obligor level with 1,293 issuers and 1,834 loans, indicating loan-level diversification. Nevertheless, CLO reinvestment and vintage distributions and heavy allocations to a limited set of CLO managers (combined 58.6%) concentrate manager, structural and reinvestment risk. The -12.3% discount between market price and NAV and the 16.3% dividend yield reflect market pricing of those risks and liquidity/valuation dynamics in CLO equity exposures.
Filed pursuant to Rule 497
File No. 333-275147
Rule 482ad
PDCC Stock Price Top 10 Obligor Exposure ASURION, LLC 0.7% TRANSDIGM INC. 0.5% COTIVITI, INC. 0.5% QUIKRETE HOLDINGS, INC. 0.5% ACRISURE, LLC 0.4% INEOS US FINANCE LLC 0.4% CLOUD SOFTWARE GROUP, INC. 0.4% ABG INTERMEDIATE HOLDINGS 2 LLC 0.4% VIRGIN MEDIA BRISTOL LLC 0.4% WEC US HOLDINGS LTD. 0.4% Total 4.6% Top 10 Positions LCM 42 Ltd. 5.0% Dryden 120 CLO Ltd. 4.4% Voya CLO 2025-1 Ltd. 4.2% Signal Peak CLO 14 Ltd. 4.2% RR 37 Ltd. 4.0% RR 19 Ltd. 4.0% CQS US CLO 2023-3 Ltd. 3.9% Regatta XIX Funding Ltd. 3.1% AMMC CLO 24 Ltd. 3.0% LCM 39 Ltd. 2.9% Total 38.6% Top 10 CLO managers Apollo 12.7% LCM 8.1% Ares 7.3% Investcorp 5.1% Putnam 4.6% PGIM 4.4% OakTree 4.2% Voya 4.2% ORIX 4.2% CQS 3.9% Total 58.6% Top 10 Industry Exposure Software 8.1% Health Care Providers & Services 4.7% Hotels, Restaurants & Leisure 4.6% Professional Services 4.1% Media 4.0% Chemicals 3.9% Insurance 3.5% Commercial Services & Supplies 3.5% Building Products 2.9% Diversified Telecommunication Services 2.8% Total 42.0% 22 20 18 16 14 12 10 Closing Price Per Share ($) NAV Per Share ($) 40% 35% 30% 25% 20% 15% 10% 5% 0% Moody's Rating 80% 70% 60% 50% 40% 30% 20% 10% 0% <70 70-80 80-90 90-95 95-97.5 97.5-100 >=100 Loan Market Price PEARL DIVER CREDIT COMPANY INC. July 2025 2013 2015 2016 2017 2018 2019 2021 2022 2023 2024 2025 2023 2026 Closing Date 2027 RED 2028 2029 2030 Price Distribution of Underlying Obligors1 Underlying Collateral Rating Distribution CLO Reinvestment End Date Distribution CLO Vintage Distribution % of Fund NAV % of Fund NAV A3 or higher Baa1 Baa2 Baa3 Ba1 Ba2 Ba3 B1 B2 B3 Caa1 Caa2 Caa3 Below CCC N/R % of Fund NAV % of Fund NAV Common Stock Data as of 7/31/2025 Ticker Symbol PDCC Total Net Asset Value $125.61 million Net Asset Value Per Share $18.48 Closing Price Per Share $16.20 Premium / Discount -12.3% Total Market Capitalization $110.10 million Current Dividend Yield 16.3% Frequency of Payments Monthly Summary of Underlying Portfolio Number of Unique Underlying Obligors 1,293 Number of Underlying Loans 1,834 Average Individual Obligor Exposure 0.08% Aggregate Balance of Underlying Loans $24.43 billion Cash and Short Term Investments % of Fund 4.9% Currency: USD Exposure 100%
1 Calculated using market mid prices of loans in CLO portfolios, excluding bonds.
| Past performance is not indicative of, or a guarantee of, future performance. Please review the important information and notes on page 2. |
| Totals may not always sum due to rounding. |
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Investors should consider Pearl Diver Credit Company Inc.’s (the “Company”) investment objectives, risks, charges and expenses carefully before investing in securities of the Company. The Company’s prospectus contains this and other important information about the fund. Investors should read the Company’s prospectus and Securities and Exchange Commission (“SEC”) filings (which are publicly available on the EDGAR Database on the SEC website at http://www.sec.gov) carefully and consider their investment goals, time horizons and risk tolerance before investing in the Company. The investment program of the Company is speculative and entails substantial risk, including the possible loss of principal. There can be no assurance that Company’s investment objectives will be achieved. An investment in the Company is not appropriate for all investors and is not intended to be a complete investment program. Shares of closed-end investment companies, such as the Company, frequently trade at a discount from their net asset value, which may increase investors’ risk of loss. The Company invests a significant portion of its assets in CLO equity securities, which often involve risks that are different from or more acute than risks associated with other types of credit instruments. Shares of closed-end investment companies, such as the Company, frequently trade at a discount from their net asset value, which may increase investors’ risk of loss. Past performance is not indicative of, or a guarantee of, future performance. The performance and certain other portfolio information quoted herein represents information as of dates noted herein. Nothing herein shall be relied upon as a representation as to the future performance or portfolio holdings of the Company. Investment return and principal value of an investment will fluctuate, and shares, when sold, may be worth more or less than their original cost. The Company’s performance is subject to change since the end of the period noted in this report and may be lower or higher than the performance data shown herein.
From time to time, the Company may have a registration statement relating to one or more of its securities on file with the SEC. Any registration statement that has not yet been declared effective by the SEC, and any prospectus relating thereto, is not complete and may be changed. Any securities that are the subject of such a registration statement may not be sold until the registration statement is filed with the SEC is effective.
The information and its contents are the property of the Company. Any unauthorized dissemination, copying or use of this presentation is strictly prohibited and may be in violation of law.
Investor Contact: Info@Pearldivercap.com
UK: +44 (0)20 3967 8032
US: +1 617 872 0945
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FAQ
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