Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 216

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 216
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 same risks and considerations as other transactions with similar instruments. Currency transactions can result in losses to
the Company if the currency being hedged fluctuates in value to a degree in a direction that is not anticipated. Furthermore, there is
a risk that the perceived linkage between various currencies may not be present or may not be present during the particular time that
the Company is engaging in proxy hedging. Suitable hedging transactions may not be available in all circumstances. Hedging transactions
may also eliminate any chance for the Company to benefit from favorable fluctuations in relevant foreign currencies.

Risks associated with entering
into forward foreign currency contracts include the possibility that the market for forward foreign currency contracts may be limited
with respect to certain currencies and, upon a contract's maturity, the inability of the Company to negotiate with the dealer to enter
into an offsetting transaction. As mentioned above, forward foreign currency contracts may be closed out only by the parties entering
into an offsetting contract. This creates settlement risk in forward foreign currency contracts, which is the risk of loss when one party
to the forward foreign currency contract delivers the currency it sold but does not receive the corresponding amount of the currency it
bought. Settlement risk arises in deliverable forward foreign currency contracts where the parties have not arranged to use a mechanism
for payment-versus-payment settlement, such as an escrow arrangement. In addition, the correlation between movements in the prices of
those contracts and movements in the price of the currency hedged or used for cover will not be perfect. There is no assurance an active
forward foreign currency contract market will always exist. These factors will restrict the Company's ability to hedge against the risk
of devaluation of currencies in which the Company holds a substantial quantity of securities and are unrelated to the qualitative rating
that may be assigned to any particular security. In addition, if a currency devaluation is generally anticipated, the Company may not
be able to contract to sell currency at a price above the devaluation level it anticipates. The successful use of forward foreign currency
contracts as a hedging technique draws upon special skills and experience with respect to these instruments and usually depends on the
ability of the Adviser to forecast interest rate and currency exchange rate movements correctly. Should interest or exchange rates move
in an unexpected manner, the Company may not achieve the anticipated benefits of forward foreign currency contracts or may realize losses
and thus be in a worse position than if those strategies had not been used. Many forward foreign currency contracts are subject to no
daily