Financial Data and Key Metrics Changes - For the quarter ended June 30, 2025, the company reported investment income of $5.5 million or $0.81 per share, down from $6 million in the prior quarter due to decreased yield on CLO equity investments caused by market-wide loan spread compression [15] - Total expenses for the quarter were $2.4 million or $0.35 per share, resulting in net investment income of $3.1 million or $0.46 per share [15] - The net income for the quarter was $3.5 million or $0.52 per share, with recurring cash flows totaling $8 million or $1.18 per share, exceeding distributions and expenses by $0.16 per share [15][16] - As of June 30, 2025, total assets were $166.1 million and total net assets were $123.6 million, leading to a net asset value (NAV) per share of $18.19, which increased to $18.48 by July 31, 2025 [16] Business Line Data and Key Metrics Changes - The company recorded an unrealized gain on investments of $500,000 and a modest net realized loss of $70,000 during the quarter [15] - The weighted average GAAP yield on the portfolio decreased to 12.75% as of June 30, down from 15.57% as of March 31, primarily due to market-wide loan spread compression [7][8] Market Data and Key Metrics Changes - The CLO market remained resilient during a period of macro uncertainty and has since rebounded, with loan fundamentals remaining strong [6] - The trailing twelve-month payment default rate rose to approximately 1.1% as of June 30, 2025, up from 0.91% as of December 2024, but still below the post-pandemic peak of 1.75% [39] Company Strategy and Development Direction - The company emphasizes a data-driven investment approach utilizing machine learning technology and proprietary algorithms to maintain agility and seek relative value in the CLO space [8][9] - The portfolio is diversified across 52 unique CLO positions managed by 31 distinct CLO manager platforms, with no significant concentration in any single CLO [11][12] - The company plans to continue leveraging its unique infrastructure to identify mispricings and attractive investment opportunities [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term resilience of the CLO asset class despite macro uncertainties, highlighting the efficient access to senior secured corporate loans [19] - The company anticipates continued refinancing and reset activity into 2025, with five minority positions already successfully reset or refinanced in Q3 [34] Other Important Information - The company distributed dividends of $0.22 per common share in April, May, June, and July, with plans for similar distributions in the following months, representing an annualized dividend yield of approximately 14.7% [17] Q&A Session Summary Question: Inquiry about recurring cash flow for comparative purposes - Management confirmed that recurring cash flow for Q1 was $7.7 million [21][24] Question: Thoughts on increasing leverage - Management stated that leverage levels will vary over time and will be utilized opportunistically based on investment opportunities and cost of leverage [22][24] Question: Composition of current pipeline regarding primary vs secondary opportunities and U.S. vs European CLO positions - Management indicated that the primary market currently presents interesting opportunities, while the secondary market has provided better relative value recently [25][29] Question: Quantification of opportunities for resets and refinancings within the portfolio - Management expects refinancing and reset activity to continue, with five minority positions already reset or refinanced in Q3 [33][34] Question: NAV reaction to the credit environment after the sell-off in April - Management noted that NAV increased post-sell-off due to strong loan fundamentals and significant refinancing activity [38][39]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported investment income of $5.5 million or $0.81 per share, down from $6 million in the prior quarter due to decreased yield on CLO equity investments caused by market-wide loan spread compression [15] - Total expenses for the quarter were $2.4 million or $0.35 per share, resulting in net investment income of $3.1 million or $0.46 per share [15] - The net income for the quarter was $3.5 million or $0.52 per share, with recurring cash flows totaling $8 million or $1.18 per share, exceeding distributions and expenses by $0.16 per share [16][18] - As of June 30, total assets were $166.1 million and total net assets were $123.6 million, leading to a net asset value (NAV) per share of $18.19, which increased to $18.48 by July 31 [17] Business Line Data and Key Metrics Changes - The weighted average GAAP yield on the portfolio decreased to 12.75% as of June 30 from 15.57% as of March 31, primarily due to market-wide loan spread compression [7][8] - The company maintained a diversified portfolio with 52 unique CLO positions managed by 31 distinct CLO manager platforms, consisting of approximately 1,800 unique loans across over 30 industry sectors [12][13] Market Data and Key Metrics Changes - The CLO market showed resilience during macroeconomic uncertainty, with loan fundamentals remaining strong and managers adapting quickly to market conditions [6] - The trailing twelve-month payment default rate rose to approximately 1.1% as of June, up from 0.91% as of December 2024, but still below the post-pandemic peak of 1.75% [40] Company Strategy and Development Direction - The company emphasized its data-driven investment approach, utilizing machine learning and proprietary algorithms to maintain a competitive edge in the CLO market [9][10] - The management plans to continue leveraging its unique infrastructure to identify mispricings and attractive investment opportunities, with a focus on both primary and secondary market opportunities [10][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term resilience of the CLO asset class despite macro uncertainties, highlighting the efficient access to senior secured corporate loans [20] - The company anticipates continued refinancing and reset activity into 2025, with five minority positions successfully reset or refinanced in Q3 [35] Other Important Information - The company distributed dividends of $0.22 per common share in April, May, June, and July, with plans to continue this distribution in August, September, and October, representing an annualized dividend yield of approximately 14.7% [18] Q&A Session Summary Question: Recurring cash flow comparison with the prior quarter - Management confirmed that recurring cash flow for Q1 was $7.7 million, similar to the current quarter's level [22][24] Question: Thoughts on increasing leverage - Management stated that leverage levels will vary over time, and they evaluate investment opportunities daily, considering the cost of leverage compared to expected returns [23][24] Question: Composition of current pipeline in terms of primary vs secondary opportunities and U.S. vs European CLO positions - Management indicated that the relative value of opportunities drives their decisions, noting interesting opportunities in the primary market while the secondary market has provided better relative value recently [25][28] Question: Quantifying opportunities for resets and refinancings - Management expects refinancing and reset activity to continue, with five minority positions successfully reset or refinanced in Q3 [35] Question: NAV reaction to the credit environment post-sell off - Management noted that NAV increased post-sell off due to strong loan technicals and significant refinancing activity, with credit fundamentals remaining stable [39]

Core Viewpoint - Pearl Diver Credit Company Inc. reported solid financial results for the second quarter of 2025, maintaining net asset value per share and leveraging a machine learning approach to CLO equity investing to enhance portfolio returns [2][5]. Financial Performance - Net asset value per share was $18.19 as of June 30, 2025, down from $18.33 as of March 31, 2025 [5]. - GAAP net income for the quarter was $3.5 million, or $0.52 per share [5]. - Net investment income for the quarter was $3.1 million, or $0.46 per share [5]. - Investment income for the quarter totaled $5.5 million, or $0.81 per share [5]. - Total expenses for the quarter were $2.4 million, or $0.35 per share [5]. - The net change in unrealized appreciation on investments was $0.5 million, or $0.07 per share, compared to unrealized depreciation of $9.6 million, or $1.41 per share, in the previous quarter [5]. - Recurring cash flows from CLO investments for the quarter were $8.0 million, or $1.18 per share [5]. Portfolio and Investment Strategy - The Company had leverage of $40.4 million, representing 24.3% of total assets as of June 30, 2025, compared to 23.2% as of March 31, 2025 [5]. - The weighted average effective yield of the CLO portfolio was 12.75%, down from 15.57% as of March 31, 2025, due to market-wide loan spread compression [5]. - 95% of CLOs in the portfolio have reinvestment end dates from 2026 through 2030, indicating potential for favorable reinvestment opportunities [5]. - The Company had indirect exposure to approximately 1,285 unique corporate obligors and over 1,800 underlying loans, totaling $24.4 billion [5]. - The largest look-through obligor represented 0.7% of the loans in the CLO equity portfolio, while the top ten largest obligors represented 4.7% [5]. Dividends and Future Outlook - Net asset value per share increased to $18.48 as of July 31, 2025, a 1.6% increase from June 30, 2025 [5]. - The Company declared monthly dividends of $0.22 per share for August, September, and October 2025 [5].

Company Overview - Pearl Diver Credit Company Inc. is an externally managed, non-diversified, closed-end management investment company focused on maximizing total return and generating high current income through investments primarily in equity and junior debt tranches of CLOs backed by sub-investment grade, senior secured floating-rate debt from various US companies across multiple sectors [4][6] - As of June 30, 2025, the company has approximately $3.0 billion in assets under management, supported by institutional investors including public pension plans, university endowments, and corporate pension plans across the US, Europe, and Latin America [6] Upcoming Financial Results - The company will announce its second quarter 2025 financial results on August 26, 2025, prior to market opening [1][3] - A conference call and webcast will be held on the same day at 11:00 am Eastern Time / 4:00 pm UK Time to discuss the financial results [1][2] Investment Strategy - The company aims to achieve its investment objectives by focusing on CLO investments, leveraging proprietary technology and advanced analytics to identify attractive opportunities in the market [5] - Pearl Diver Capital LLP, the external manager, has established strong relationships with over 80 CLO managers, providing access to critical credit information while avoiding conflicts of interest [6]

Company Overview - Pearl Diver Credit Company Inc. (NYSE: PDCC) is a closed-end fund (CEF) that primarily invests in equity and junior debt of collateralized loan obligations (CLOs) [1] - The main objective of the company is to optimize the overall return of its portfolio [1] Analyst Background - The analyst has a Master's degree in Corporate and Market Finance and focuses on identifying resilient and undervalued companies across various sectors [1] - There is a particular interest in the Energy sector due to its strategic and transitional importance, but the analyst is open to opportunities in any industry with strong fundamentals and long-term value [1] - The approach emphasizes disciplined analysis, downside protection, and long-term thinking in a volatile market [1]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported investment income of $6 million or $0.89 per share, an increase of $600,000 or $0.08 per share from the prior quarter [13] - Total expenses for the quarter were $2.6 million or $0.38 per share, an increase of $600,000 or $0.08 per share, primarily due to interest expense on term preferred shares [13] - The net investment income was $3.4 million or $0.50 per share, while the net unrealized loss on investments was $9.6 million or $1.41 per share, leading to a net loss of $6.1 million or $0.90 per share [13][14] - As of March 31, 2025, total assets were $173.7 million and total net assets were $124.6 million, resulting in a net asset value per share of $18.33 [14] Business Line Data and Key Metrics Changes - The portfolio consists of 50 unique CLO positions managed by 33 distinct CLO managers, with approximately 1,700 unique loans across over 30 industry sectors [6] - The weighted average GAAP yield on the portfolio was 15.57% at March 31, an increase of 68 basis points from the prior quarter [7] - The company invested $30.8 million in primary CLOs during Q1 2025, and approximately 9% of the portfolio was refinanced or reset [9] Market Data and Key Metrics Changes - In Q1 2025, $40.56 billion in new US CLOs were issued, and $96 billion in CLOs were refinanced [9] - The LSTA indexes trailing twelve-month default rate ended the first quarter at 82 basis points, 11 basis points lower than at the end of 2024 [10] - The company noted that CLO portfolios experienced credit stresses at roughly half the default rate of the broader market [10] Company Strategy and Development Direction - The company aims to maximize total return while generating high current income through investments primarily in equity and junior debt tranches of CLOs [5] - The investment strategy focuses on maintaining a sustainable distribution policy and protecting net asset value (NAV) [5] - The company plans to utilize leverage opportunistically when attractive investment opportunities arise [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the CLO market's resilience despite tariff uncertainties and believes CLOs provide an efficient way to access senior secured corporate loans [16] - The company anticipates a slowdown in CLO primary issuance and refinancing activity but expects CLOs to capitalize on any loan market volatility [9][10] - Management noted that early signs show CLO managers have proactively reduced exposure to tariff-sensitive issuers [11] Other Important Information - The company distributed dividends of $0.22 per common share in January, February, and March, with plans to continue this distribution in April [14] - The annualized dividend yield based on the share price at the end of March was 13.9% [15] Q&A Session Summary - No specific questions or answers were documented in the provided content, as the Q&A session concluded without detailed interactions [17][18]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported investment income of $6 million or $0.89 per share, an increase of $600,000 or $0.08 per share from the prior quarter [14] - Total expenses for the quarter were $2.6 million or $0.38 per share, an increase of $600,000 or $0.08 per share, primarily due to interest expense on term preferred shares [14] - The net investment income was $3.4 million or $0.50 per share, while the net unrealized loss on investments was $9.6 million or $1.41 per share, leading to a net loss of $6.1 million or $0.90 per share [14][15] - As of March 31, 2025, total assets were $173.7 million and total net assets were $124.6 million, resulting in a net asset value per share of $18.33 [15] Business Line Data and Key Metrics Changes - The company’s portfolio consists of 50 unique CLO positions managed by 33 distinct CLO managers, with approximately 1,700 unique loans across over 30 industry sectors [6] - The weighted average GAAP yield on the portfolio was 15.57% at March 31, an increase of 68 basis points from the prior quarter [8] - The company invested $30.8 million in primary CLOs during Q1 2025, with approximately 9% of the portfolio refinanced or reset [10] Market Data and Key Metrics Changes - In Q1 2025, $40.5 billion in new US CLOs were issued, and $96 billion in CLOs were refinanced [10] - The LSTA indexes trailing twelve-month default rate ended the first quarter at 82 basis points, 11 basis points lower than at the end of 2024 [11] - The company noted that CLO portfolios experienced credit stresses at roughly half the level of the overall market [11] Company Strategy and Development Direction - The company aims to maximize total return while generating high current income through investments primarily in equity and junior debt tranches of CLOs [5] - The strategy includes maintaining a sustainable distribution policy and protecting net asset value (NAV) while managing risks through diversification [5] - The company is positioned to capitalize on market volatility due to extended reinvestment periods of CLOs [10][12] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the CLO market's resilience despite tariff uncertainties, highlighting strong corporate fundamentals and manageable near-term maturities [11][13] - The company anticipates a slowdown in CLO primary issuance and refinancing activity but expects CLOs to absorb potential loan fund outflows [10][11] - Management believes that CLOs provide an efficient way to access senior secured corporate loans and can offer attractive risk-return profiles across various credit cycles [18] Other Important Information - The company distributed dividends of $0.22 per common share in January, February, and March, with plans for the same distribution in April [16] - The annualized dividend yield based on the share price at the end of March was 13.9% [17] Q&A Session Summary - The Q&A session did not contain specific questions or answers as the call concluded without further inquiries from participants [19][20]

Core Viewpoint - Pearl Diver Credit Company Inc. reported a net loss of $6.1 million for Q1 2025, a significant decline from a net income of $3.4 million in the previous quarter, primarily due to unrealized losses on investments resulting from increased market risk premiums affecting CLO equity valuations [6]. Financial Performance - Net asset value per share decreased to $18.33 as of March 31, 2025, down from $19.89 as of December 31, 2024, reflecting a decrease of $1.56 per share [6]. - Net investment income for Q1 2025 was $3.4 million, or $0.50 per share, consisting of $6.0 million in investment income and $2.6 million in expenses [6]. - Unrealized losses on investments totaled $9.6 million, or $1.41 per share, compared to a gain of $0.5 million, or $0.07 per share in the previous quarter [6]. - The company had leverage of $40.4 million, representing 23.2% of total assets as of March 31, 2025, an increase from $35.6 million or 19.9% of total assets at the end of 2024 [6]. Investment Portfolio - The weighted average effective yield of the company's CLO portfolio was 15.57%, an increase of 68 basis points [6]. - The company had indirect exposure to approximately 1,200 unique corporate obligors and over 1,700 underlying loans, totaling $22.7 billion [6]. - The largest look-through obligor represented 0.6% of the loans underlying the CLO equity portfolio, while the top ten largest obligors represented 4.4% [6]. Capital Raising - The company closed the over-allotment option on its public offering of 8.00% Series A Term Preferred Stock Due 2029, raising net proceeds of $33.2 million from the sale of 1,480,000 shares at $25 per share [6].

Company Overview - Pearl Diver Credit Company Inc. is an externally managed, non-diversified, closed-end management investment company focused on maximizing total return and generating high current income through investments primarily in equity and junior debt tranches of CLOs [4] - As of March 31, 2025, the company has approximately $2.8 billion in assets under management, backed by institutional investors including public pension plans and university endowments [6] Upcoming Financial Results - The company will release its first quarter 2025 financial results before market open on April 29, 2025, and will host a conference call at 11:00 a.m. Eastern Time to discuss these results [1][2] Conference Call Details - Investors and analysts can participate in the conference call by dialing the provided numbers approximately 10 minutes prior to the start [2] - A live audio webcast of the conference call will be available on the company's website [2] Company Management and Strategy - Pearl Diver Capital LLP, founded in 2008, specializes in CLO investing and employs advanced analytics to identify opportunities in the CLO market [5] - The firm has established relationships with over 80 CLO managers, providing access to critical credit information while avoiding conflicts of interest [6]

Core Viewpoint - Pearl Diver Credit Company Inc. announced its financial results for the fourth quarter ended December 31, 2024, highlighting key metrics such as net income, investment income, and leverage [1][2]. Financial Performance - Net asset value per share of common stock was $19.89 as of December 31, 2024 [7]. - Net investment income (NII) for the quarter was $3.4 million, or $0.50 per share, consisting of $5.4 million in investment income ($0.80 per share) and $2.0 million in expenses ($0.30 per share) [7]. - The unrealized gain on investments was $0.5 million, or $0.07 per share, while the realized loss on investments was also $0.5 million, or $0.07 per share [7]. - Total net income for the quarter was $3.4 million, or $0.50 per share of common stock [7]. Leverage and Investment Portfolio - The company had leverage of $35.6 million, representing 19.9% of total assets as of December 31, 2024 [7]. - The leverage was composed of $29.0 million of 8.00% Series A Term Preferred Stock due 2029 and $6.6 million in short-term repurchase agreements [7]. - The weighted average effective yield of the company's collateralized loan obligation (CLO) portfolio was 14.89% based on amortized cost [7]. Investment Exposure - The company had indirect exposure to approximately 1,200 unique corporate obligors and over 1,600 underlying loans, totaling $19.0 billion through its CLO investments [7]. - The largest look-through obligor represented 0.7% of the loans underlying the company's CLO equity portfolio, while the top ten largest look-through obligors represented 4.3% of the loans [7]. Public Offering - The company completed an underwritten public offering of 1,200,000 shares of 8.00% Series A Term Preferred Stock due 2029 at $25 per share, with an additional 180,000 shares sold following the exercise of the overallotment option in January 2025 [7].