Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 206

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 206
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 make any payment or delivery of cash or other assets during the life of the instrument or at maturity or early
termination, whether as margin or settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and
similar financing transactions, if the Company elects to treat these transactions as Derivatives Transactions under Rule 18f-4; and (4)
when-issued or forward-settling securities (e.g., firm and standby commitments, including to-be-announced (“TBA”) commitments,
and dollar rolls) and non-standard settlement cycle securities, unless the Company intends to physically settle the transactions and the
transaction will settle within 35 days of its trade date.

Rule 18f-4 requires that
a registered investment company that invests in Derivative Transactions above a specified amount adopt and implement a derivatives risk
management program administered by a derivatives risk manager that is appointed by and overseen by the fund’s board, and comply
with an outer limit on fund leverage risk based on value at risk. A fund that uses Derivative Transactions in a limited amount is considered
a “limited derivatives user,” as defined in Rule 18f-4 and is not be subject to the full requirements of Rule 18f-4, but does
have to adopt and implement policies and procedures reasonably designed to manage the fund’s derivatives risk. A fund is subject
to reporting and recordkeeping requirements regarding its use of Derivative Transactions.

The requirements of Rule
18f-4 may limit the Company’s ability to engage in Derivative Transactions as part of its investment strategies. These requirements
may also increase the cost of the Company’s investments and cost of doing business, which could adversely affect the value of the
Company’s investments and/or the performance of the Company. The rule also may not be effective to limit the Company’s risk
of loss. In particular, measurements of VaR rely on historical data and may not accurately measure the degree of risk reflected in a Company’s
derivatives or other investments. There may be additional regulation of the use of Derivative Transactions by registered investment companies,
which could significantly affect their use. The ultimate impact of the regulations remains unclear. Additional regulation of Derivative
Transactions may make them more costly, limit their availability or utility, otherwise adversely affect their performance or disrupt markets.

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Forward Foreign Currency Contracts.A forward foreign currency contract involves a negotiated obligation to purchase or sell a specific currency at a future
date or range of future dates (