Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 222

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 222
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reements.
Repurchase agreements are agreements under which the Company purchases securities from a bank that is a member of the Federal Reserve
System, a foreign bank or a securities dealer that agrees to repurchase the securities from the Company at a higher price on a designated
future date. If the seller under a repurchase agreement becomes insolvent or otherwise fails to repurchase the securities, the Company
would have the right to sell the securities. This right, however, may be restricted, or the value of the securities may decline before
the securities can be liquidated. In the event of the commencement of bankruptcy or insolvency proceedings with respect to the seller
of the securities before the repurchase of the securities under a repurchase agreement is accomplished, the Company might encounter a
delay and incur costs, including a decline in the value of the securities, before being able to sell the securities. Repurchase agreements
that are subject to foreign law may not enjoy protections comparable to those provided to certain repurchase agreements under U.S. bankruptcy
law, and they therefore may involve greater risks.

Reverse Repurchase Agreements and Sale-Buybacks. Reverse repurchase agreements are transactions in which the Company sells portfolio securities to financial institutions,
such as banks and broker-dealers, and agrees to repurchase them at a mutually agreed-upon date and price that is higher than the original
sale price. Reverse repurchase agreements are similar to a fully collateralized borrowing by the Company. Reverse repurchase agreements
involve risks. Reverse repurchase agreements are a form of leverage, and the use of reverse repurchase agreements by the Company may increase
the Company's volatility. Reverse repurchase agreements are also subject to the risk that the other party to the reverse repurchase agreement
will be unable or unwilling to complete the transaction as scheduled, which may result in losses to the Company. Reverse repurchase agreements
also involve the risk that the market value of the securities sold by the Company may decline below the price at which it is obligated
to repurchase the securities. In addition, when the Company invests the proceeds it receives in a reverse repurchase transaction, there
is a risk that those investments may decline in value. In this circumstance, the Company could be required to sell other investments in
order to meet its obligations to repurchase the securities.

In a sale-buyback transaction,
the Company sells an underlying security for settlement at a later date. A sale-buyback is similar to a reverse repurchase agreement,
except that in a sale-buyback the counterparty