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]

-  Company to Host Conference Call and Webcast at 11:00 AM ET Today  -NEW YORK and LONDON, Aug. 26, 2025 /PRNewswire/ -- Pearl Diver Credit Company Inc. (NYSE: PDCC, PDPA) (the "Company") today announced financial results for the second quarter ended June 30, 2025."The Company delivered a solid second quarter, particularly given the ongoing volatility in the macro environment, and our momentum has carried forward into July," said Indranil Basu, Chief Executive Officer of Pearl Diver Credit Company. "For the ...

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].