Pearl Diver Credit Company Inc. Announces Closing of Offering of Series A Preferred Stock

Rhea-AI Summary

Pearl Diver Credit Company (NYSE: PDCC) has completed its public offering of 1,200,000 shares of 8.00% Series A Preferred Stock Due 2029 at $25.00 per share. The Preferred Shares will trade on the NYSE under the symbol 'PDPA' starting December 20, 2024. The company plans to use the proceeds to acquire investments aligned with its investment objectives and for general working capital purposes. The offering was managed by Lucid Capital Markets, B. Riley Securities, and Kingswood Capital Partners as joint book-running managers, with InspereX and Janney Montgomery Scott acting as lead managers.

Positive

• Successfully raised $30 million through preferred stock offering ($25 x 1.2M shares)
• 8.00% fixed dividend rate provides predictable income for preferred shareholders
• NYSE listing enhances liquidity and trading accessibility

Negative

• New preferred shares create fixed dividend payment obligations
• Dilutive effect on existing shareholders

Insights

Financial Markets Analyst

Pearl Diver Credit Company's successful $30 million preferred stock offering represents a strategic capital raise with notable implications. The 8.00% yield on the Series A Preferred shares is particularly attractive in the current market environment, potentially drawing significant investor interest. The pricing at $25.00 per share aligns with standard preferred stock offerings, making it accessible to both institutional and retail investors.

The underwriting syndicate's composition, led by Lucid Capital Markets with B. Riley Securities and Kingswood Capital Partners, suggests a well-coordinated distribution strategy targeting diverse investor channels. This new preferred stock issuance enhances the company's capital structure flexibility while providing a fixed-income investment opportunity in the credit market sector.

Investment Strategist

This preferred stock offering strengthens Pearl Diver's investment capacity at a important time in the credit market cycle. The $30 million capital injection will expand their ability to capitalize on credit opportunities while maintaining a stable funding source through the preferred dividend structure.

For investors, the 8.00% yield positions these shares competitively within the preferred stock market, especially considering the 2029 maturity date provides a defined investment horizon. The NYSE listing under PDPA symbol ensures liquidity for investors, while the regulatory filing and established underwriting group add layers of institutional credibility to the offering.

NEW YORK and LONDON, Dec. 19, 2024 /PRNewswire/ -- Pearl Diver Credit Company Inc. (NYSE: PDCC) (the "Company") today announced the closing of its previously announced public offering of 1,200,000 shares of its 8.00% Series A Preferred Stock Due 2029 (the "Preferred Shares") at a public offering price of $25.00 per share.

The Company intends to use the proceeds from the offering to acquire investments in accordance with the investment objectives and strategies described in the prospectus relating to this offering and for general working capital purposes. The Preferred Shares will begin trading on the New York Stock Exchange under the symbol "PDPA" on December 20, 2024.

Lucid Capital Markets, LLC ("Lucid"), B. Riley Securities, Inc. and Kingswood Capital Partners, LLC acted as joint book-running managers and InspereX LLC and Janney Montgomery Scott LLC acted as lead managers for the offering.

Investors should consider the Company's investment objectives, risks, charges and expenses carefully before investing. The prospectus, dated December 13, 2024, 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 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 prospectus may be obtained by writing to Lucid Capital Markets, LLC, 570 Lexington Avenue, New York, New York 10022, by calling Lucid toll-free at 646-362-0256 or by sending an e-mail to Lucid at prospectus@lucid.com. Copies may also be obtained on the SEC's website at www.sec.gov.

About Pearl Diver Credit Company Inc.

Pearl Diver Credit Company Inc. (NYSE: PDCC) is an 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 is externally managed by Pearl Diver Capital LLP. For more information, visit www.pearldivercreditcompany.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

Investor Contact:
Info@Pearldivercap.com
UK: +44 (0)20 3967 8032
US: +1 617 872 0945

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SOURCE Pearl Diver Credit Company Inc.

FAQ

How much did Pearl Diver Credit Company (PDCC) raise in its Series A Preferred Stock offering?

PDCC raised $30 million by offering 1,200,000 shares of Series A Preferred Stock at $25.00 per share.

What is the dividend rate for PDCC's Series A Preferred Stock?

The Series A Preferred Stock offers an 8.00% dividend rate and is due in 2029.

When will PDCC's Series A Preferred Stock begin trading on NYSE?

The Preferred Shares will begin trading on the NYSE under the symbol 'PDPA' on December 20, 2024.

How will PDCC use the proceeds from the Series A Preferred Stock offering?

PDCC intends to use the proceeds to acquire investments aligned with their investment objectives and for general working capital purposes.

Which firms acted as book-running managers for PDCC's preferred stock offering?

Lucid Capital Markets, B. Riley Securities, and Kingswood Capital Partners acted as joint book-running managers for the offering.