PDPA: An 8.00% Term Preferred IPO From Pearl Diver Credit Company
Portfolio Pulse from
Pearl Diver Credit Company Inc. has launched its first fixed-income security, PDPA, an 8.0% Series A Term Preferred Stock, maturing on 12/31/2029. PDPA offers an 8.00% cumulative annual dividend and is trading at $24.88 with a Yield to Maturity of 8.12% and Yield to Call of 8.26%. Despite lacking a credit rating, PDPA's asset coverage covenants and underwriter credit spreads align with established CLO Equity sector companies.
January 05, 2025 | 10:00 am
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Pearl Diver Credit Company Inc. has introduced PDPA, an 8.0% Series A Term Preferred Stock, offering a high yield but lacking a credit rating. The security's asset coverage covenants and underwriter credit spreads are comparable to those in the CLO Equity sector.
The launch of PDPA by PDCC is significant as it offers a high yield of 8.0% and aligns with established CLO Equity sector standards, which may attract investors seeking high returns. The lack of a credit rating could be a concern, but the asset coverage covenants provide some assurance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100