Pearl Diver Credit Nets $22.5M Q1 Loss as NAV Slides to $10.48
Pearl Diver Credit Company reported Q1 net asset value per share of $10.48 versus $14.42 in the prior quarter and a net loss of $22.5 million ($3.28 per share). Recurring CLO cash flows rose to $10.4 million ($1.53 per share) and the company declared $0.13 monthly dividends for June-August.
1. Q1 Financial Performance
The company’s net asset value per share declined to $10.48 at March 31, down from $14.42 at December 31, and it recorded a GAAP net loss of $22.5 million, or $3.28 per share. Net investment income fell to $2.6 million, or $0.39 per share, from $3.4 million in the prior quarter.
2. CLO Portfolio Yields and Cash Flows
Recurring cash flows from CLO investments rose to $10.4 million, or $1.53 per share, compared to $9.8 million in the preceding quarter. The weighted average effective yield on the CLO portfolio eased to 11.27% from 12.99%, with 99.9% of CLOs carrying reinvestment end dates through 2026–2030.
3. Dividend Declaration and Capital Actions
The board declared monthly common dividends of $0.13 per share for June through August and preferred dividends of $0.1667 per share on the Series A term preferred stock. The company issued 34,970 shares in Q1 and 65,658 shares through May 15 via at-the-market offerings, raising approximately $1.2 million in net proceeds.
4. Leverage and Portfolio Exposure
Leverage stood at $39.5 million, representing 35.0% of total assets versus 28.7% at year-end. On a look-through basis, the CLO investments cover 1,382 unique obligors and over 1,700 loans totaling $27.2 billion, with the top ten obligors accounting for just 4.2% of the underlying loan pool.