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 - Eagle Point Credit Company (ECC) was founded in 2012 and went public on October 7, 2014[14] - ECC's primary investment objective is to generate high current income by investing primarily in equity and junior debt tranches of CLOs[14] - ECC has a total market capitalization of $1,409.3 million[14] - ECC pays a monthly distribution of $0.14 per share of common stock, resulting in a distribution rate of 24.4%[14] - Eagle Point Credit Management LLC manages over $12 billion in AUM across the Eagle Point platform[14] - The Adviser and Senior Investment Team have approximately $10.8 million invested in securities issued by the Company[15] Portfolio Composition and Performance - As of June 30, 2025, ECC's portfolio was invested across 238 CLO investments[65] - The portfolio has 95.7% exposure to floating-rate senior secured loans[28] - The portfolio consists of 77% CLO Equity, 3% CLO Debt, 2% Loan Accumulation Facilities, 4% Regulatory Capital Relief, 5% Consumer ABS, 2% Collateralized Fund Obligations, 2% Other, and 5% Cash[66] - The portfolio has exposure to 1,906 unique underlying loan obligors[28]