Pearl Diver Credit Company Inc. Announces Closing of Initial Public Offering and Full Exercise of Overallotment Option

Rhea-AI Summary

Pearl Diver Credit Company Inc. (NYSE: PDCC) has successfully closed its initial public offering (IPO) of 2.2 million shares at $20.00 per share, with a fully exercised overallotment option of 330,000 shares. The company raised total net proceeds of $50.6 million. Pearl Diver Capital LLP, the company's investment adviser, will cover the sales load and all organizational and offering expenses. PDCC began trading on the NYSE on July 18, 2024, with a market capitalization of approximately $136 million as of July 19, 2024. The company plans to use the proceeds to build a diversified portfolio of senior secured U.S. corporate loans through investments in equity tranches of collateralized loan obligations (CLOs).

Positive

• Successful IPO raising $50.6 million in net proceeds
• Full exercise of overallotment option, indicating strong demand
• Investment adviser covering sales load and all offering expenses
• Market capitalization of $136 million after first day of trading
• Clear investment strategy focused on CLO equity tranches

Negative

• Potential dilution for existing shareholders due to new share issuance
• Risks associated with investing in CLO equity tranches

Insights

Financial Analyst

The successful completion of Pearl Diver Credit Company Inc.'s initial public offering (IPO) represents a important milestone for the company. Raising $50.6 million through the issuance of 2.53 million shares, including the overallotment option, is a strong starting point. This infusion of capital will be used to build a diversified portfolio of senior secured U.S. corporate loans through investments in equity tranches of collateralized loan obligations (CLOs). The company's market capitalization of approximately $136 million post-IPO indicates a healthy valuation for a newcomer on the NYSE. Investors should be aware that while the financial backing appears robust, the inherent risks associated with CLO investments and the performance of U.S. corporate loans must be carefully monitored. This can greatly influence the company's financial stability and stock performance in the long run.

Market Research Analyst

The IPO's timing and execution reflect positive market sentiment and investor confidence in Pearl Diver Credit Company Inc. The full exercise of the overallotment option suggests strong demand from institutional investors, which is a good indicator of market trust. The company's strategy to use the proceeds to invest in CLOs aligns with current market trends, where investors are seeking higher yields in a low-interest-rate environment. However, retail investors should scrutinize the associated risks, as CLOs can be complex and their performance can be volatile, highly dependent on the credit quality of the underlying loans.

Legal Expert

The announcement highlights the regulatory compliance achieved by Pearl Diver Credit Company Inc., having filed and declared effective their registration statement with the SEC. This compliance is important as it ensures all necessary information about the company's financial health, investment strategy and associated risks are transparently disclosed to potential investors. Legal considerations here underline the importance of due diligence; investors need to thoroughly read the prospectus to understand the company's objectives, risks, charges and expenses. The involvement of Kingswood Capital Partners as the sole bookrunner also adds a layer of credibility to the offering, ensuring that the IPO process adheres to high standards of financial regulations and practices.

NEW YORK and LONDON, July 19, 2024 /PRNewswire/ -- Pearl Diver Credit Company Inc. (NYSE: PDCC) (the "Company") today announced the closing of its previously announced initial public offering of 2.2 million shares of common stock at a public offering price of $20.00 per share and the full exercise of the overallotment option of 330,000 shares for total net proceeds to the Company of $50.6 million. Pearl Diver Capital LLP ("Pearl Diver Capital"), the Company's investment adviser, or its affiliates will pay the full amount of the sales load in connection with this initial public offering and all of the Company's organizational and offering expenses.

The Company intends to use the proceeds from the capital raised to build a diversified portfolio of senior secured U.S. corporate loans through investments in equity tranches of collateralized loan obligations (CLOs).

Shares of the Company's common stock began trading on the New York Stock Exchange under the symbol "PDCC" on July 18, 2024. As of the close of trading on July 19, 2024, the Company's market capitalization was approximately $136 million.

Kingswood Capital Partners, LLC acted as the sole bookrunner for the offering.

Investors should consider the Company's investment objectives, risks, charges and expenses carefully before investing. The preliminary prospectus, which has been filed with the Securities and Exchange Commission ("SEC"), contains this and other information about the Company and should be read carefully before investing. The information in the preliminary prospectus and this press release is not complete and may be changed. The preliminary prospectus and this press release are not offers to sell these securities and are not soliciting an offer to buy these securities in any state where such offer or sale is not permitted.

A registration statement relating to these securities is on file with and has been declared effective by the SEC. Copies of the preliminary prospectus (and the final prospectus, when available) may be obtained by writing to Kingswood Capital Partners, LLC, 126 East 56^th Street, Suite 22S, New York, NY 10022, or by calling 212-487-1080. Copies may also be obtained by visiting EDGAR on the SEC's website at www.sec.gov.

About Pearl Diver Credit Company Inc.
Pearl Diver Credit Company Inc. (NYSE: PDCC) is a newly organized, externally managed, non-diversified, closed-end management investment company. Its primary investment objective is to maximize its portfolio's total return, with a secondary objective of generating high current income. The Company seeks to achieve these objectives by investing primarily in equity and junior debt tranches of CLOs collateralized by portfolios of sub-investment grade, senior secured floating-rate debt issued by a large number of distinct US companies across several industry sectors. The Company will be externally managed by Pearl Diver Capital LLP. The Company's public filings are available free of charge by writing to the Company at 747 3rd Avenue, Level 36, New York, NY, Attention: Investor Relations.

About Pearl Diver Capital LLP
Founded in 2008, Pearl Diver Capital specializes in collateralized loan obligation (CLO) investing. Its data scientists and credit analysts use proprietary technology and advanced analytics to identify attractive opportunities in the CLO market. Pearl Diver's highly experienced team includes individuals from a wide range of scientific and mathematical backgrounds. The senior investment team includes Indranil (Neil) Basu, Chandrajit Chakraborty, Michael Brown, Matthew Layton, Kerrill Gaffney and Patrick Chan.

As of June 30, 2024, Pearl Diver Capital has $2.6 billion in assets under management across multiple private funds backed by institutional investors ranging from public pension plans, university endowments, foundations, large family offices, corporate/ERISA pension plans and asset managers across the US, Europe and Latin America. Because it is strictly an investor in the CLO space, not an issuer, it has developed close relationships with over 80 CLO managers – and their analysts – across the CLO spectrum, enabling the firm to have rare access to critical credit information on underlying companies in CLO portfolios while avoiding conflicts of interest that might arise in performing roles that span both CLO investing and CLO management. For more information, visit www.pearldivercapital.com.

Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the prospectus and the Company's other filings with the SEC. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

Media Contact:
Joseph Kuo / Michael Dugan
Haven Tower Group LLC
424 317 4851 or 424 317 4852
jkuo@haventower.com or mdugan@haventower.com

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SOURCE Pearl Diver Credit Company Inc.

FAQ

What was the IPO price for Pearl Diver Credit Company (PDCC) shares?

The IPO price for Pearl Diver Credit Company (PDCC) shares was $20.00 per share.

How many shares did PDCC offer in its initial public offering?

PDCC offered 2.2 million shares in its initial public offering, plus an additional 330,000 shares through the fully exercised overallotment option, totaling 2.53 million shares.

When did PDCC begin trading on the New York Stock Exchange?

PDCC began trading on the New York Stock Exchange on July 18, 2024, under the symbol 'PDCC'.

What was PDCC's market capitalization after its first day of trading?

PDCC's market capitalization was approximately $136 million as of the close of trading on July 19, 2024.

How does PDCC plan to use the proceeds from its IPO?

PDCC plans to use the proceeds to build a diversified portfolio of senior secured U.S. corporate loans through investments in equity tranches of collateralized loan obligations (CLOs).