#United States #New York #Pearl Diver Credit #NYSE PDCC #Series A Preferred Stock

Pearl Diver Credit Company Inc. Expands Series A Preferred Stock Offering

In a significant development for investors and stakeholders, Pearl Diver Credit Company Inc. (NYSE: PDCC), has announced the complete exercise of the overallotment option related to its recent public offering of Series A Preferred Stock. This announcement, made on January 6, 2025, not only showcases the company's vigorous financial maneuvers but also signals strong investor confidence in its offerings.

What Is the Overallotment Option?

The overallotment option is a provision that allows underwriters the ability to purchase additional shares exceeding the original offering amount. This helps stabilize share prices after an initial public offering, allowing for more extensive fundraising efforts by the company. In this instance, underwriters managed to acquire an additional 180,000 shares of the 8.00% Series A Preferred Stock, which will mature in 2029, at a public offering price of $25.00 each.

As a result of the overallotment option being fully exercised, the total series of Preferred Shares sold by Pearl Diver now stands at an impressive 1,380,000 shares. The increased capital will allow the company to pursue investment opportunities aligned with its strategic goals, as well as general working capital needs.

The Path Forward

The funds generated from this expanded offering are in line with Pearl Diver’s objectives stated in their prospectus. The company is set to utilize these proceeds to further invest according to detailed investment goals including enhancing its portfolio, which primarily entails investing in equity and junior debt tranches of Collateralized Loan Obligations (CLOs). Notably, a significant aspect of Pearl Diver's strategy involves targeting portfolios of sub-investment-grade debt primarily held by established US companies in various sectors.

The Preferred Shares began trading on the NYSE under the ticker symbol “PDPA” on December 20, 2024, marking a vital pivot in Pearl Diver's financial strategy and enhancing its visibility in the public market.

Who's Behind This Offering?

The successful execution of this offering and the management of the overallotment option were aided by multiple significant financial players. Notable among them are Lucid Capital Markets, LLC, B. Riley Securities, Inc., and Kingswood Capital Partners, LLC, who served as joint book-running managers for the offering. Additional management was provided by InspereX LLC and Janney Montgomery Scott LLC.

Both retail and institutional investors have shown keen interest in Pearl Diver's investment strategies. However, potential investors are reminded to review the company’s offering prospectus thoroughly, which includes crucial information concerning investment objectives, risks, charges, and expenses.

Core Investment Philosophy

Pearl Diver Credit Company Inc. operates as an externally managed, closed-end management firm, emphasizing a non-diversified investment approach. Its primary focus is to maximize the total returns of its portfolio while ensuring a high level of current income. The firm invests mainly in equity and junior debt tranches, aiming to navigate the complex landscape of debt markets in today’s economy.

As the landscape of investment continues to evolve, so too does Pearl Diver, showcasing its resilience and adaptability through strategic investments and offerings. Investors eagerly await the potential benefits this latest offering can yield, as Pearl Diver continues to carve its niche in the financial services industry.

For more information about Pearl Diver Credit Company Inc. and its offerings, visit Pearl Diver's website.

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Disclaimer: This press release contains forward-looking statements, which involve risks and uncertainties. Actual performance may vary significantly from such statements. Always consult official company filings and disclosures for detailed investment advice.