Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 212

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 212
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 Nevertheless, each position
must still be maintained to maturity unless the parties separately agree on an earlier settlement date. As a result, a party to a forward
contract must be prepared to perform its obligations under each such contract in full. Parties to a forward contract may also separately
agree to extend the contract by “rolling” it over prior to the originally scheduled settlement date. The Company may use forward
contracts for cash equitization purposes, which allows the Company to invest consistent with its investment strategy while managing daily
cash flows, including significant client inflows and outflows.

The Company may use currency
instruments as part of a hedging strategy, as described below.

Transaction Hedging.
Transaction hedging is entering into a currency transaction with respect to specific assets or liabilities of the Company, which will
generally arise in connection with the purchase or sale of its portfolio securities or the receipt of income therefrom. The Company may
enter into transaction hedging out of a desire to preserve the U.S. dollar price of a security when it enters into a contract for the
purchase or sale of a security denominated in a foreign currency. The Company may be able to protect itself against possible losses resulting
from changes in the relationship between the U.S. dollar and foreign currencies during the period between the date the security is purchased
or sold and the date on which payment is made or received by entering into a forward contract for the purchase or sale, for a fixed amount
of U.S. dollars, of the amount of the foreign currency involved in the underlying security transactions.

Position Hedging.
The Company may sell a non-U.S. currency and purchase U.S. currency to reduce exposure to the non-U.S. currency (called “position
hedging”). The Company may use position hedging when the Adviser reasonably believes that the currency of a particular foreign country
may suffer a substantial decline against the U.S. dollar. The Company may enter into a forward foreign currency contract to sell, for
a fixed amount of U.S. dollars, the amount of foreign currency approximating the value of some or all of its portfolio securities denominated
in such foreign currency. The forward foreign currency contract amount and the value of the portfolio securities involved may not have
a perfect correlation because the future value of the securities hedged will change as a consequence of the market between the date the
forward contract is entered into and the date it matures.

Cross Hedges. The
Company may also cross-hedge currencies by entering into transactions to purchase