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].

Earnings Announcement and Conference Call - Pearl Diver Credit Company Inc will release its Q4 2024 financial results before market open on January 28 2025 [1] - The company will host a conference call at 11:00am ET / 4:00pm UK time on January 28 2025 to discuss the financial results [1] - Investors and analysts can dial 1-877-407-9208 (US) or 1-201-493-6784 (international) to participate in the call [2] - A live audio webcast of the conference call will be available on the company's website [2] - A replay of the conference call will be available within two hours of the conclusion of the call on the company's website [3] Company Overview - Pearl Diver Credit Company Inc is an externally managed non-diversified closed-end management investment company [4] - The company's primary investment objective is to maximize its portfolio's total return with a secondary objective of generating high current income [4] - The company invests primarily in equity and junior debt tranches of CLOs collateralized by portfolios of sub-investment grade senior secured floating-rate debt issued by US companies across several industry sectors [4] - The company is externally managed by Pearl Diver Capital LLP [4] Pearl Diver Capital Overview - Pearl Diver Capital specializes in collateralized loan obligation (CLO) investing [5] - The firm uses proprietary technology and advanced analytics to identify attractive opportunities in the CLO market [5] - As of December 31 2024 Pearl Diver Capital has approximately $2 8 billion in assets under management across multiple private funds [6] - The firm's investors include public pension plans university endowments foundations large family offices corporate/ERISA pension plans and asset managers across the US Europe and Latin America [6] - Pearl Diver Capital has developed close relationships with over 80 CLO managers and their analysts across the CLO spectrum [6] - The firm's focus on CLO investing rather than CLO management allows it to avoid conflicts of interest and gain rare access to critical credit information on underlying companies in CLO portfolios [6]

Offering Details - The underwriters fully exercised their option to purchase an additional 180,000 Preferred Shares at $25.00 per share, increasing the total number of Preferred Shares sold to 1,380,000 [1] - The Preferred Shares began trading on the New York Stock Exchange under the symbol "PDPA" on December 20, 2024 [2] Use of Proceeds - The company intends to use the proceeds from the Offering to acquire investments in accordance with its investment objectives and strategies, as well as for general working capital purposes [2] Management and Underwriters - Lucid Capital Markets, LLC, B Riley Securities, Inc, and Kingswood Capital Partners, LLC acted as joint book-running managers for the Offering [3] - InspereX LLC and Janney Montgomery Scott LLC acted as lead managers for the Offering [3] Company Overview - Pearl Diver Credit Company Inc is an externally managed, non-diversified, closed-end management investment company [6] - The company's primary investment objective is to maximize its portfolio's total return, with a secondary objective of generating high current income [6] - The company invests primarily in equity and junior debt tranches of CLOs collateralized by portfolios of sub-investment grade, senior secured floating-rate debt issued by US companies across several industry sectors [6] - The company is externally managed by Pearl Diver Capital LLP [6]

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