Pearl Diver Credit (NYSE:PDCC) Issues Quarterly Earnings Results

Pearl Diver Credit (NYSE:PDCC) released its earnings results on Thursday. The company reported $0.28 earnings per share (EPS) for the quarter, Zacks reports.

Here are the key takeaways from Pearl Diver Credit’s conference call:

• Positive Sentiment: Net asset value per share recovered 6.4% to $11.15 in the second quarter, supported by $6.7 million in net unrealized gains and an $8.5 million increase in net assets from operations.
• Positive Sentiment: The company completed five CLO resets and refinancings covering approximately 12% of its portfolio, reducing weighted-average debt costs by 33 basis points and AAA spreads by 27 basis points.
• Positive Sentiment: Credit performance remained resilient, with the portfolio’s last-12-month default rate at 1.08%, broadly in line with the CLO market and below the 2.29% leveraged-loan market rate. About 70% of net asset value is in CLOs with reinvestment periods extending to 2029 or later.
• Negative Sentiment: Investment income declined to $4.2 million, or $0.60 per share, from $4.8 million, or $0.70 per share, in the prior quarter; recurring CLO cash flows also fell to $1.27 per share from $1.53. Management maintained a reduced monthly dividend of $0.13 per share for September through November.
• Neutral Sentiment: Management remains constructive on CLO opportunities but is not assuming the market recovery marks a durable cycle turn, retaining capacity to increase leverage selectively from its 32.9% of total-assets level if conditions and investment opportunities warrant.

Pearl Diver Credit Price Performance

PDCC stock traded up $0.04 during trading on Thursday, hitting $8.88. 3,359 shares of the company’s stock traded hands, compared to its average volume of 5,533. Pearl Diver Credit has a 52 week low of $8.45 and a 52 week high of $17.74. The business has a fifty day simple moving average of $9.36 and a 200 day simple moving average of $10.36.

About Pearl Diver Credit

Pearl Diver Credit Company Inc 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. Pearl Diver Credit Company Inc is based in NEW YORK.