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

Rhea-AI Summary

Pearl Diver Credit Company (NYSE: PDCC) has announced an underwritten public offering of its Series A Preferred Stock Due 2029. The stock, rated 'BBB' by Egan-Jones Ratings Company, will be listed on the NYSE under the ticker symbol 'PDPA' within 30 days of issuance. Lucid Capital Markets, B. Riley Securities, and Kingswood Capital Partners are serving as joint book-running managers, while InspereX and Janney Montgomery Scott are acting as lead managers.

The company plans to grant underwriters a 30-day option to purchase additional shares. Proceeds will be used to acquire investments aligned with the company's objectives and for general working capital purposes. The offering's terms will be determined through negotiations between the company and underwriters.

Positive

• BBB rating from Egan-Jones Ratings Company indicates investment-grade status
• NYSE listing provides enhanced liquidity and visibility
• Multiple established financial institutions involved as underwriters

Negative

• Potential dilution of existing shareholders' value
• Terms of the offering not yet determined, creating uncertainty for investors

Insights

Financial Analyst

This preferred stock offering marks a significant capital raising initiative for Pearl Diver Credit Company. The BBB rating from Egan-Jones suggests moderate credit quality, positioning the offering as a relatively stable investment option in the fixed-income space. The involvement of multiple prominent underwriters, including Lucid Capital Markets and B. Riley Securities, indicates strong institutional support. The planned NYSE listing under ticker PDPA should provide good liquidity for investors. The company's strategy to use proceeds for new investments and working capital appears aligned with typical business expansion objectives. However, the absence of specific terms and pricing details makes it challenging to fully assess the offering's value proposition and potential dilution impact on existing shareholders.

Market Research Analyst

The timing of this preferred stock offering is noteworthy given the current market environment. With interest rates at elevated levels, preferred stocks have become increasingly attractive to income-seeking investors. The 2029 maturity provides a medium-term investment horizon that may appeal to both institutional and retail investors looking for yield alternatives. The option granted to underwriters to purchase additional shares suggests confidence in market demand. However, the success of the offering will largely depend on the yet-to-be-announced dividend rate and how it compares to other fixed-income alternatives. The BBB rating positions this offering in the lower investment-grade category, which typically commands higher yields to compensate for slightly elevated risk.

NEW YORK and LONDON, Dec. 11, 2024 /PRNewswire/ -- Pearl Diver Credit Company Inc. (NYSE: PDCC) (the "Company") has commenced an underwritten public offering of its Series A Preferred Stock Due 2029. Certain financial and other terms of the Series A Preferred Stock are to be determined by negotiations between the Company and the underwriters. Shares of the Series A Preferred Stock are rated 'BBB' by Egan-Jones Ratings Company, an independent rating agency. In addition, the Company plans to grant the underwriters a 30-day option to purchase additional shares of Series A Preferred Stock pursuant to the same terms and conditions. Shares of the Series A Preferred Stock are expected to be listed on the New York Stock Exchange and to trade thereon within 30 days of the original issue date under the ticker symbol "PDPA."

Pearl Diver Credit Company today announced an underwritten public offering of its Series A Preferred Stock Due 2029.

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

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 supplement and for general working capital purposes.

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, but has not yet been declared effective by, the SEC. Copies of the preliminary prospectus (and the final prospectus, when available) 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 also may be obtained on the SEC's website at www.sec.gov.

Egan-Jones Ratings Company is a nationally recognized statistical rating organization (NRSRO). A security rating is not a recommendation to buy, sell or hold securities, and any such rating may be subject to revision or withdrawal at any time by the applicable rating agency.

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

What is the purpose of PDCC's Series A Preferred Stock offering in December 2024?

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

What is the credit rating of PDCC's Series A Preferred Stock Due 2029?

The Series A Preferred Stock has received a 'BBB' rating from Egan-Jones Ratings Company.

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

The Series A Preferred Stock is expected to trade on the NYSE within 30 days of the original issue date under the ticker symbol 'PDPA'.

Which investment banks are managing PDCC's preferred stock offering?

Lucid Capital Markets, B. Riley Securities, and Kingswood Capital Partners are joint book-running managers, while InspereX and Janney Montgomery Scott are lead managers.

What options are being granted to the underwriters in PDCC's preferred stock offering?

The underwriters will receive a 30-day option to purchase additional shares of Series A Preferred Stock under the same terms and conditions.