mmci-formnq_17514.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549


FORM N-Q


Quarterly Schedule of Portfolio Holdings of
Registered Management Investment Company

Investment Company Act file number 811-02183




Babson Capital Corporate Investors

(Exact name of registrant as specified in charter)



1500 Main Street, Springfield, MA 01115

(Address of principal executive offices) (Zip code)



Christopher A. DeFrancis, Vice President and Secretary
1500 Main Street, Suite 2800, Springfield, MA 01115

(Name and address of agent for service)



Registrant's telephone number, including area code: 413-226-1000


___________________


Date of fiscal year end: 12/31

___________________


Date of reporting period: 03/31/13

___________________

 
 


 
 
 
 
 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2013
(Unaudited)
 
Corporate Restricted Securities - 91.04%: (A)  
Principal Amount,
Shares, Units or
Ownership Percentage
   
Acquisition
Date
    Cost     Fair Value  
                         
Private Placement Investments - 84.34%
                         
                           
1492 Acquisition LLC
                         
A leading producer of premium Italian cured meats and deli meats in the U.S.  
14% Senior Subordinated Note due 2019
  $ 2,752,025      
10/17/12
    $ 2,699,634     $ 2,705,844  
Limited Liability Company Unit Class A Common (B)
 
27,273 uts.
     
10/17/12
      27,273       26,095  
Limited Liability Company Unit Class A Preferred (B)
 
245 uts.
     
10/17/12
      245,450       249,541  
                      2,972,357       2,981,480  
A E Company, Inc.
A designer and manufacturer of machined parts and assembly structures for the commercial and military aerospace industries.
Common Stock (B)
 
323,077 shs.
     
11/10/09
      323,077       706,272  
Warrant, exercisable until 2019, to purchase
                               
common stock at $.01 per share (B)
 
161,538 shs.
     
11/10/09
      119,991       353,135  
                      443,068       1,059,407  
A H C Holding Company, Inc.
                               
A designer and manufacturer of boilers and water heaters for the commercial sector.  
Limited Partnership Interest (B)
 
23.16% int.
     
11/21/07
      224,795       285,179  
 
A S C Group, Inc.
A designer and manufacturer of high reliability encryption equipment, communications products, computing systems and electronic components primarily for the military and aerospace sectors.
Limited Liability Company Unit Class A (B)
   
4,128 uts.
      *          147,972       165,021  
Limited Liability Company Unit Class B (B)
   
2,793 uts.
     
10/09/09
      100,114       111,653  
* 10/09/09 and 10/27/10.
                    248,086       276,674  
 
A W X Holdings Corporation
A provider of aerial equipment rental, sales and repair services to non-residential construction and maintenance contractors operating in the state of Indiana.
10.5% Senior Secured Term Note due 2014 (D)
  $ 735,000      
05/15/08
      724,402       551,250  
13% Senior Subordinated Note due 2015 (D)
  $ 735,000      
05/15/08
      673,096       -  
Common Stock (B)
105,000 shs.
     
05/15/08
      105,000       -  
Warrant, exercisable until 2015, to purchase
                               
common stock at $.01 per share (B)
 
36,923 shs.
     
05/15/08
      62,395       -  
                      1,564,893       551,250  
ABC Industries, Inc.
                               
A manufacturer of mine and tunneling ventilation products in the U.S.
 
                         
13% Senior Subordinated Note due 2019
  $ 1,200,000      
08/01/12
      1,081,236       1,190,307  
Preferred Stock Series A (B)
300,000 shs.
     
08/01/12
      300,000       270,685  
Warrant, exercisable until 2022, to purchase
                               
common stock at $.01 per share (B)
 
53,794 shs.
     
08/01/12
      101,870       -  
                      1,483,106       1,460,992  
 

8
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
Babson Capital Corporate Investors
 
Corporate Restricted Securities: (A) (Continued)  
Principal Amount,
Shares, Units or
Ownership Percentage
   
Acquisition
Date
   
Cost
   
Fair Value
 
                           
ACP Cascade Holdings LLC
                         
A manufacturer and distributor of vinyl windows and patio doors throughout the northwestern United States.
 
Limited Liability Company Unit Class B (B)
 
64 uts.
     
11/09/12
    $ -     $ -  
                               
Advanced Manufacturing Enterprises LLC
                             
A designer and manufacturer of large, custom gearing products for a number of critical customer applications.
   
14% Senior Subordinated Note due 2018
  $ 2,723,077      
12/07/12
      2,683,626       2,689,568  
Limited Liability Company Unit (B)
 
2,769 uts.
     
12/07/12
      276,923       209,968  
                      2,960,549       2,899,536  
Advanced Technologies Holdings
                               
A provider of factory maintenance services to industrial companies.
                               
Preferred Stock Series A (B)
 
796 shs.
     
12/27/07
      393,754       1,401,817  
Convertible Preferred Stock Series B (B)
 
52 shs.
     
01/04/11
      40,800       92,475  
                      434,554       1,494,292  
All Current Holding Company
                               
A specialty re-seller of essential electrical parts and components primarily serving wholesale distributors.
         
12% Senior Subordinated Note due 2015
  $ 1,140,317      
09/26/08
      1,091,029       1,140,317  
Common Stock (B)
 
1,347 shs.
     
09/26/08
      134,683       234,141  
Warrant, exercisable until 2018, to purchase
                               
common stock at $.01 per share (B)
 
958 shs.
     
09/26/08
      87,993       166,524  
                      1,313,705       1,540,982  
American Hospice Management Holding LLC
                               
A for-profit hospice care provider in the United States.
                               
12% Senior Subordinated Note due 2013
  $ 3,187,495       *          3,161,801       3,187,495  
Preferred Class A Unit (B)
 
3,223 uts.
      **          322,300       441,367  
Preferred Class B Unit (B)
 
1,526 uts.
     
06/09/08
      152,626       324,755  
Common Class B Unit (B)
 
30,420 uts.
     
01/22/04
      1       -  
Common Class D Unit (B)
 
6,980 uts.
     
09/12/06
      1       -  
* 01/22/04 and 06/09/08.
                    3,636,729       3,953,617  
** 01/22/04 and 09/12/06.
                               
                                 
AMS Holding LLC
                               
A leading multi-channel direct marketer of high-value collectible coins and proprietary-branded jewelry and watches.
         
14.25% Senior Subordinated Note due 2019
  $ 2,757,355      
10/04/12
      2,705,116       2,725,191  
Limited Liability Company Unit Class A Preferred (B)
 
273 uts.
     
10/04/12
      272,727       272,730  
                      2,977,843       2,997,921  
 

9
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
 
Corporate Restricted Securities: (A) (Continued)  
Principal Amount,
Shares, Units or
Ownership Percentage
   
Acquisition
Date
   
Cost
   
Fair Value
 
                           
Apex Analytix Holding Corporation
                         
A provider of audit recovery and fraud detection services and software to commercial and retail businesses in the U.S. and Europe.
 
12.5% Senior Subordinated Note due 2017
  $ 1,912,500      
04/28/09
    $ 1,746,879     $ 1,912,500  
Preferred Stock Series B (B)
 
3,065 shs.
     
04/28/09
      306,507       408,754  
Common Stock (B)
 
1,366 shs.
     
04/28/09
      1,366       106,304  
                      2,054,752       2,427,558  
Arch Global Precision LLC
                               
A leading manufacturer of high tolerance precision components and consumable tools.
   
14.75% Senior Subordinated Note due 2018
  $ 2,330,004      
12/21/11
      2,278,024       2,371,581  
Limited Liability Company Unit Class B (B)
 
85 uts.
     
12/21/11
      85,250       118,370  
Limited Liability Company Unit Class C (B)
 
665 uts.
     
12/21/11
      664,750       923,004  
                      3,028,024       3,412,955  
Arrow Tru-Line Holdings, Inc.
                               
A manufacturer of hardware for residential and commercial overhead garage doors in North America.
12% Senior Subordinated Note due 2016 (D)
  $ 1,541,407      
05/18/05
      1,417,930       1,541,407  
Preferred Stock (B)
 
63 shs.
     
10/16/09
      62,756       148,954  
Common Stock (B)
 
497 shs.
     
05/18/05
      497,340       7,538  
Warrant, exercisable until 2014, to purchase
                               
common stock at $.01 per share (B)
 
130 shs.
     
05/18/05
      112,128       1,976  
                      2,090,154       1,699,875  
Baby Jogger Holdings LLC
                               
A designer and marketer of premium baby strollers and stroller accessories.
   
14% Senior Subordinated Note due 2019
  $ 2,826,634      
04/20/12
      2,776,130       2,911,433  
Common Stock (B)
 
2,261 shs.
     
04/20/12
      226,132       349,054  
                      3,002,262       3,260,487  
Blue Wave Products, Inc.
                               
A distributor of pool supplies.
                               
10% Senior Secured Term Note due 2018
  $ 714,893      
10/12/12
      701,437       705,704  
13% Senior Subordinated Note due 2019
  $ 718,273      
10/12/12
      667,538       706,261  
Common Stock (B)
114,894 shs.
     
10/12/12
      114,894       113,233  
Warrant, exercisable until 2022, to purchase
                               
common stock at $.01 per share (B)
 
45,486 shs.
     
10/12/12
      45,486       44,828  
                      1,529,355       1,570,026  
BP SCI LLC
                               
A leading value-added distributor of branded pipes, valves, and fittings (PVF) to diversified end markets.
 
14% Senior Subordinated Note due 2018
  $ 2,523,108      
10/17/12
      2,475,605       2,484,985  
Limited Liability Company Unit Class A (B)
 
1,000 uts.
     
10/17/12
      100,000       82,014  
Limited Liability Company Unit Class B (B)
 
400 uts.
     
10/17/12
      400,000       410,000  
                      2,975,605       2,976,999  
 

10
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
Babson Capital Corporate Investors
 
Corporate Restricted Securities: (A) (Continued)  
Principal Amount,
Shares, Units or
Ownership Percentage
   
Acquisition
Date
   
Cost
   
Fair Value
 
                           
Bravo Sports Holding Corporation                          
A designer and marketer of niche branded consumer products including canopies, trampolines, in-line skates, skateboards, and urethane wheels.  
12.5% Senior Subordinated Note due 2014
  $ 2,281,593      
06/30/06
    $ 2,249,301     $ 2,167,513  
Preferred Stock Class A (B)
 
879 shs.
     
06/30/06
      268,121       157,542  
Common Stock (B)
 
1 sh.
     
06/30/06
      286       -  
Warrant, exercisable until 2014, to purchase
                               
common stock at $.01 per share (B)
 
309 shs.
     
06/30/06
      92,102       55,368  
                      2,609,810       2,380,423  
C D N T, Inc.
                               
A value-added converter and distributor of specialty pressure sensitive adhesives, foams, films, and foils.
10.5% Senior Secured Term Note due 2014
  $ 234,647      
08/07/08
      233,337       234,647  
12.5% Senior Subordinated Note due 2015
  $ 750,872      
08/07/08
      718,204       750,872  
Common Stock (B)
 
73,256 shs.
     
08/07/08
      73,256       99,093  
Warrant, exercisable until 2018, to purchase
                               
common stock at $.01 per share (B)
 
57,600 shs.
     
08/07/08
      57,689       77,915  
                      1,082,486       1,162,527  
Capital Specialty Plastics, Inc.
                               
A producer of desiccant strips used for packaging pharmaceutical products.
           
Common Stock (B)
 
109 shs.
      *          503       1,031,767  
*12/30/97 and 05/29/99.
                               
                                 
CHG Alternative Education Holding Company
                               
A leading provider of publicly-funded, for profit pre-K-12 education services targeting special needs children at therapeutic day schools and “at risk” youth through alternative education programs.
 
13.5% Senior Subordinated Note due 2018
  $ 2,209,998      
01/19/11
      2,108,691       2,254,197  
14% Senior Subordinated Note due 2019
  $ 570,033      
08/03/12
      559,445       573,365  
Common Stock (B)
 
1,125 shs.
     
01/19/11
      112,500       121,180  
Warrant, exercisable until 2021, to purchase
                               
common stock at $.01 per share (B)
 
884 shs.
     
01/19/11
      87,750       95,255  
                      2,868,386       3,043,997  
Church Services Holding Company
                               
A provider of diversified residential services to homeowners in the Houston, Dallas, and Austin markets.
 
14.5% Senior Subordinated Note due 2018
  $ 1,224,451      
03/26/12
      1,188,098       1,248,940  
Common Stock (B)
 
3,981 shs.
      *          398,100       370,273  
Warrant, exercisable until 2022, to purchase
                               
common stock at $.01 per share (B)
 
172 shs.
     
03/26/12
      17,220       15,998  
*03/26/12, 05/25/12 and 06/19/12.
                    1,603,418       1,635,211  
 

11
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
 
Corporate Restricted Securities: (A) (Continued)   Principal Amount,
Shares, Units or
Ownership Percentage
   
Acquisition
Date
   
Cost
   
Fair Value
 
                           
Clough, Harbour and Associates
                         
An engineering service firm that is located in Albany, NY.
                         
Preferred Stock (B)
 
277 shs.
     
12/02/08
    $ 276,900     $ 384,328  
                               
Connecticut Electric, Inc.
                             
A supplier and distributor of electrical products sold into the retail and wholesale markets.
                 
10% Senior Subordinated Note due 2014 (D)
  $ 1,456,429      
01/12/07
      1,358,675       1,404,463  
Limited Liability Company Unit Class A (B)
 
156,046 uts.
     
01/12/07
      156,046       19,462  
Limited Liability Company Unit Class C (B)
 
112,873 uts.
     
01/12/07
      112,873       15,086’  
Limited Liability Company Unit Class D (B)
 
1,268,437 uts.
     
05/03/10
      -       1,338,622  
Limited Liability Company Unit Class E (B)
 
2,081 uts.
     
05/03/10
      -       -  
                      1,627,594       2,777,633  
Connor Sport Court International, Inc.
                               
A designer and manufacturer of outdoor and indoor synthetic sports flooring and other temporary flooring products.
Preferred Stock Series B-2 (B)
 
17,152 shs.
     
07/05/07
      700,392       1,715,247  
Preferred Stock Series C (B)
 
7,080 shs.
     
07/05/07
      236,503       707,977  
Common Stock (B)
 
718 shs.
     
07/05/07
      7       317  
Limited Partnership Interest (B)
 
12.64% int.
      *          189,586       -  
*08/12/04 and 01/14/05.
                    1,126,488       2,423,541  
                                 
CorePharma LLC
                               
A manufacturer of oral dose generic pharmaceuticals targeted at niche applications.
   
Warrant, exercisable until 2013, to purchase
                               
common stock at $.001 per share (B)
 
20 shs.
     
08/04/05
      137,166       785,892  
                                 
Crane Rental Corporation
                               
A crane rental company since 1960, headquartered in Florida.
                               
13% Senior Subordinated Note due 2015
  $ 2,295,000      
08/21/08
      2,183,167       2,281,751  
Common Stock (B)
 
255,000 shs.
     
08/21/08
      255,000       104,965  
Warrant, exercisable until 2016, to purchase
                               
common stock at $.01 per share (B)
 
136,070 shs.
     
08/21/08
      194,826       56,010  
                      2,632,993       2,442,726  
 

12
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
Babson Capital Corporate Investors
 
Corporate Restricted Securities: (A) (Continued)  
Principal Amount,
Shares, Units or
Ownership Percentage
   
Acquisition
Date
   
Cost
   
Fair Value
                         
Custom Engineered Wheels, Inc.                        
A manufacturer of custom engineered, non-pneumatic plastic wheels and plastic tread cap tires used primarily for lawn and garden products and wheelchairs.
12.5% Senior Subordinated Note due 2016
  $ 1,446,635      
10/27/09
    $ 1,323,739     $ 1,446,635  
Preferred Stock PIK (B)
 
296 shs.
     
10/27/09
      295,550       221,018  
Preferred Stock Series A (B)
 
216 shs.
     
10/27/09
      197,152       161,484  
Common Stock (B)
 
72 shs.
     
10/27/09
      72,238       -  
Warrant, exercisable until 2016, to purchase
                               
common stock at $.01 per share (B)
 
53 shs.
     
10/27/09
      48,608       -  
                      1,937,287       1,829,137  
DPL Holding Corporation
                               
A distributor and manufacturer of aftermarket undercarriage parts for medium and heavy duty trucks and trailers.
       
14% Senior Subordinated Note due 2019
  $ 3,126,620      
05/04/12
      3,070,021       3,149,557  
Preferred Stock (B)
 
61 shs.
     
05/04/12
      605,841       613,204  
Common Stock (B)
 
61 shs.
     
05/04/12
      67,316       41,719  
                      3,743,178       3,804,480  
Duncan Systems, Inc.
                               
A distributor of windshields and side glass for the recreational vehicle market.
 
10% Senior Secured Term Note due 2013
  $ 135,000      
11/01/06
      134,774       133,908  
13% Senior Subordinated Note due 2014
  $ 855,000      
11/01/06
      826,157       842,796  
Common Stock (B)
180,000 shs.
     
11/01/06
      180,000       48,322  
Warrant, exercisable until 2014, to purchase
                               
common stock at $.01 per share (B)
 
56,514 shs.
     
11/01/06
      78,160       15,172  
                      1,219,091       1,040,198  
E S P Holdco, Inc.
A manufacturer of power protection technology for commercial office equipment, primarily supplying the office equipment dealer network.
14% Senior Subordinated Note due 2015
  $ 2,464,326      
01/08/08
      2,442,617       2,464,326  
Common Stock (B)
 
660 shs.
     
01/08/08
      329,990       360,212  
                      2,772,607       2,824,538  
Eatem Holding Company
A developer and manufacturer of savory flavor systems for soups, sauces, gravies, and other products produced by food manufacturers for retail and foodservice end products.
12.5% Senior Subordinated Note due 2018
  $ 2,850,000      
02/01/10
      2,570,480       2,853,069  
Common Stock (B)
 
150 shs.
     
02/01/10
      150,000       127,131  
Warrant, exercisable until 2018, to purchase
                               
common stock at $.01 per share (B)
 
358 shs.
     
02/01/10
      321,300       303,123  
                      3,041,780       3,283,323  
 

13
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
 
Corporate Restricted Securities: (A) (Continued)  
Principal Amount,
Shares, Units or
Ownership Percentage
   
Acquisition
Date
   
Cost
   
Fair Value
 
                           
ELT Holding Company
                         
A provider of web-based ethics and compliance training solutions for companies in the United States.
 
14% Senior Subordinated Note due 2019
  $ 2,787,613      
03/01/12
    $ 2,738,664     $ 2,835,868  
Common Stock (B)
 
122 shs.
     
03/01/12
      272,727       314,738  
                      3,011,391       3,150,606  
F F C Holding Corporation
                               
A leading U.S. manufacturer of private label frozen novelty and ice cream products.
16% Senior Subordinated Note due 2017
  $ 2,715,309      
09/27/10
      2,680,000       2,742,462  
Limited Liability Company Unit Preferred (B)
 
512 uts.
     
09/27/10
      175,035       552,844  
Limited Liability Company Unit (B)
 
512 uts.
     
09/27/10
      51,220       91,331  
                      2,906,255       3,386,637  
F G I Equity LLC
A manufacturer of a broad range of filters and related products that are used in commercial, light industrial, healthcare, gas turbine, nuclear, laboratory, clean room, hotel, educational system, and food processing settings.
14.25% Senior Subordinated Note due 2018
  $ 676,494      
02/29/12
      676,692       690,024  
Limited Liability Company Unit Class B-1 (B)
 
394,737 uts.
     
12/15/10
      394,737       801,476  
Limited Liability Company Unit Class B-2 (B)
 
49,488 uts.
     
12/15/10
      49,488       100,481  
Limited Liability Company Unit Class B-3 (B)
 
39,130 uts.
     
08/30/12
      90,000       89,115  
Limited Liability Company Unit Class C (B)
 
9,449 uts.
     
12/20/10
      96,056       126,946  
                      1,306,973       1,808,042  
Flutes, Inc.
An independent manufacturer of micro fluted corrugated sheet material for the food and consumer products packaging industries.
10% Senior Secured Term Note due 2014 (D)   $ 918,385      
04/13/06
      908,339       872,466  
14% Senior Subordinated Note due 2015 (D)   $ 555,059      
04/13/06
      509,089       -  
                      1,417,428       872,466  
G C Holdings
A leading manufacturer of gaming tickets, industrial recording charts, security-enabled point-of sale receipts, and medical charts and supplies.
12.5% Senior Subordinated Note due 2017
  $ 3,000,000      
10/19/10
      2,850,070       3,030,000  
Warrant, exercisable until 2018, to purchase
                               
common stock at $.01 per share (B)
 
594 shs.
     
10/19/10
      140,875       1,644,566  
                      2,990,945       4,674,566  
GD Dental Services LLC
A provider of convenient “onestop” general, specialty, and cosmetic dental services with 21 offices located throughout South and Central Florida.
14% Senior Subordinated Note due 2019
  $ 2,829,249      
10/05/12
      2,775,319       2,801,911  
Limited Liability Company Unit Common (B)
 
1,840 uts.
     
10/05/12
      1,841       -  
Limited Liability Company Unit Preferred (B)
 
182 uts.
     
10/05/12
      182,209       177,812  
                      2,959,369       2,979,723  
 

14
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
Babson Capital Corporate Investors
 
Corporate Restricted Securities: (A) (Continued)
 
Principal Amount,
Shares, Units or
Ownership Percentage
   
Acquisition
Date
    Cost     Fair Value  
                           
gloProfessional Holdings, Inc.
                         
A marketer and distributor of premium mineral-based cosmetics, cosmeceuticals and professional hair care products to the professional spa and physician’s office channels.
14% Senior Subordinated Note due 2019
  $ 2,716,535      
03/27/13
    $ 2,662,284     $ 2,712,180  
Common Stock (B)
 
2,835 shs.
     
03/27/13
      283,465       269,292  
                      2,945,749       2,981,472  
Golden County Foods Holding, Inc.
                               
A manufacturer of frozen appetizers and snacks.
                               
16% Senior Subordinated Note due 2015 (D)
  $ 1,912,500      
11/01/07
      1,772,199       -  
14% PIK Note due 2015 (D)
  $ 472,711      
12/31/08
      411,209       -  
8% Series A Convertible Preferred Stock, convertible into
                               
common shares (B)
 
287,658 shs.
     
11/01/07
      146,658       -  
                      2,330,066       -  
H M Holding Company
                               
A designer, manufacturer, and importer of promotional and wood furniture.
                         
7.5% Senior Subordinated Note due 2014 (D)
  $ 685,100      
10/15/09
      512,231       -  
Preferred Stock (B)
 
40 shs.
      *          40,476       -  
Preferred Stock Series B (B)
 
2,055 shs.
     
10/15/09
      1,536,694       -  
Common Stock (B)
 
340 shs.
     
02/10/06
      340,000       -  
Common Stock Class C (B)
 
560 shs.
     
10/15/09
      -       -  
Warrant, exercisable until 2013, to purchase
                               
common stock at $.02 per share (B)
 
126 shs.
     
02/10/06
      116,875       -  
* 09/18/07 and 06/27/08.
                    2,546,276       -  
                                 
Handi Quilter Holding Company
                               
A designer and manufacturer of long-arm quilting machines and related components for the consumer quilting market.
12% Senior Subordinated Note due 2017
  $ 1,384,615      
11/14/11
      1,297,247       1,426,153  
Common Stock (B)
 
115 shs.
     
11/14/11
      115,385       217,800  
Warrant, exercisable until 2021, to purchase
                               
common stock at $.01 per share (B)
 
83 shs.
     
11/14/11
      76,788       155,927  
                      1,489,420       1,799,880  
Healthcare Direct Holding Company
                               
A direct-to-consumer marketer of discount dental plans.
                               
14% Senior Subordinated Note due 2019
  $ 2,140,362      
03/09/12
      2,102,704       2,076,718  
Common Stock (B)
 
1,552 shs.
     
03/09/12
      155,172       65,589  
                      2,257,876       2,142,307  
 

15
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
 
Corporate Restricted Securities: (A) (Continued)
 
Principal Amount,
Shares, Units or
Ownership Percentage
   
Acquisition
Date
    Cost     Fair Value  
                           
Home Décor Holding Company
                         
A designer, manufacturer and marketer of framed art and wall décor products.
 
Common Stock (B)   63 shs.       *        $ 62,742     $ 162,843  
Warrant, exercisable until 2013, to purchase                              
common stock at $.02 per share (B)
  200 shs.       *          199,501       517,806  
* 06/30/04 and 08/19/04.                   262,243       680,649  
                               
HOP Entertainment LLC
                             
A provider of post production equipment and services to producers of television shows and motion pictures.
         
Limited Liability Company Unit Class F (B)
 
89 uts.
     
10/14/11
      -       -  
Limited Liability Company Unit Class G (B)
 
215 uts.
     
10/14/11
      -       -  
Limited Liability Company Unit Class H (B)
 
89 uts.
     
10/14/11
      -       -  
Limited Liability Company Unit Class I (B)
 
89 uts.
     
10/14/11
      -       -  
                    -       -  
Hospitality Mints Holding Company
                             
A manufacturer of individually-wrapped imprinted promotional mints.
                         
12% Senior Subordinated Note due 2016
  $ 2,075,581      
08/19/08
      1,988,031       2,023,356  
Common Stock (B)
 
474 shs.
     
08/19/08
      474,419       77,051  
Warrant, exercisable until 2016, to purchase
                               
common stock at $.01 per share (B)
 
123 shs.
     
08/19/08
      113,773       19,915  
                      2,576,223       2,120,322  
HVAC Holdings, Inc.
                               
A provider of integrated energy efficiency services and maintenance programs for HVAC systems.
                 
14% Senior Subordinated Note due 2019
  $ 2,755,223      
09/27/12
      2,703,100       2,699,021  
Preferred Stock Series A (B)
 
2,705 shs.
     
09/27/12
      270,542       278,443  
Common Stock (B)
 
2,185 shs.
     
09/27/12
      2,185       -  
                      2,975,827       2,977,464  
Ideal Tridon Holdings, Inc.
                               
A designer and manufacturer of clamps and couplings used in automotive and industrial end markets.
                 
Common Stock (B)
 
279 shs.
     
10/27/11
      278,561       389,387  
                                 
Insurance Claims Management, Inc.
                               
A third party administrator providing auto and property claim administration services for insurance companies.
         
Common Stock (B)
 
89 shs.
     
02/27/07
      2,689       316,419  

International Offshore Services LLC
                         
A leading provider of marine transportation services, platform decommissioning, and salvage services to oil and gas producers in the shallow waters of the Gulf of Mexico.
 
14.25% Senior Subordinated Secured Note due 2017 (D)
  $ 2,550,000      
07/07/09
      2,335,431       -  
Limited Liability Company Unit (B)
 
3,112 uts.
     
07/07/09
      186,684       -  
                      2,522,115       -  
 

16
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
Babson Capital Corporate Investors
 
Corporate Restricted Securities: (A) (Continued)
 
Principal Amount,
Shares, Units or
Ownership Percentage
   
Acquisition
Date
    Cost     Fair Value  
                           
J A C Holding Enterprises, Inc.
                         
A supplier of luggage racks and accessories to the original equipment manufacturers.
                     
12.5% Senior Subordinated Note due 2017
  $ 2,500,000      
12/20/10
    $ 2,212,933     $ 2,495,595  
Preferred Stock A (B)
 
495 shs.
     
12/20/10
      495,000       385,767  
Preferred Stock B (B)
 
0.17 shs.
     
12/20/10
      -       130  
Common Stock (B)
 
100 shs.
     
12/20/10
      5,000       -  
Warrant, exercisable until 2020, to purchase
                               
common stock at $.01 per share (B)
 
36 shs.
     
12/20/10
      316,931       -  
                      3,029,864       2,881,492  
Jason Partners Holdings LLC
                               
A diversified manufacturing company serving various industrial markets.
                         
Limited Liability Company Unit (B)
 
90 uts.
     
09/21/10
      848,275       48,185  
                                 
JMH Investors LLC
                               
A developer and manufacturer of custom formulations for a wide variety of foods.
                         
14.25% Senior Subordinated Note due 2019
  $ 2,496,251      
12/05/12
      2,448,031       2,484,578  
Limited Liability Company Unit (B)
521,739 uts.
     
12/05/12
      521,739       460,899  
                      2,969,770       2,945,477  
K & N Parent, Inc.
                               
A manufacturer and supplier of automotive aftermarket performance air filters and intake systems.
                 
14% Senior Subordinated Note due 2017
  $ 2,648,022      
12/23/11
      2,602,571       2,727,463  
Preferred Stock Series A (B)
 
305 shs.
     
12/23/11
      289,733       289,731  
Preferred Stock Series B (B)
 
86 shs.
     
12/23/11
      82,006       82,004  
Common Stock (B)
 
391 shs.
     
12/23/11
      19,565       215,360  
                      2,993,875       3,314,558  
K N B Holdings Corporation
                               
A designer, manufacturer and marketer of products for the custom framing market.
   
15% Senior Subordinated Note due 2017
  $ 4,548,178       *          4,247,383       4,548,178  
Common Stock (B)
134,210 shs.
     
05/25/06
      134,210       69,394  
Warrant, exercisable until 2016, to purchase
                               
common stock at $.01 per share (B)
 
82,357 shs.
     
05/25/06
      71,534       42,583  
* 05/25/06 and 04/12/11.
                    4,453,127       4,660,155  
                                 
K P H I Holdings, Inc.
                               
A manufacturer of highly engineered plastic and metal components for a diverse range of end-markets, including medical, consumer and industrial, automotive and defense.
Common Stock (B)   698,478 shs.       12/10/10       698,478       797,348  
 

17
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
 
Corporate Restricted Securities: (A) (Continued)
 
Principal Amount,
Shares, Units or
Ownership Percentage
   
Acquisition
Date
   
Cost
   
Fair Value
 
                           
K P I Holdings, Inc.
                         
The largest player in the U.S. non-automotive, non-ferrous die casting segment.
                     
12.75% Senior Subordinated Note due 2015
  $ 2,749,440      
07/16/08
    $ 2,635,983     $ 2,749,440  
Convertible Preferred Stock Series C (B)
 
55 shs.
     
06/30/09
      55,435       110,000  
Convertible Preferred Stock Series D (B)
 
24 shs.
     
09/17/09
      24,476       73,410  
Common Stock (B)
 
443 shs.
     
07/15/08
      443,478       38,948  
Warrant, exercisable until 2018, to purchase
                               
common stock at $.01 per share (B)
 
96 shs.
     
07/16/08
      96,024       8,433  
Warrant, exercisable until 2018, to purchase
                               
common stock at $.01 per share (B)
 
128 shs.
     
09/17/09
      -       11,206  
                      3,255,396       2,991,437  
LPC Holding Company
A designer and manufacturer of precision-molded silicone rubber components that are utilized in the medical and automotive end markets.
13.5% Senior Subordinated Note due 2018
  $ 3,499,656      
08/15/11
      3,441,462       3,569,649  
Common Stock (B)
 
315 shs.
     
08/15/11
      315,057       389,064  
                      3,756,519       3,958,713  
M V I Holding, Inc.
A manufacturer of large precision machined metal components used in equipment which services a variety of industries, including the oil and gas, mining, and defense markets.
Common Stock (B)
 
61 shs.
     
09/12/08
      60,714       120,110  
Warrant, exercisable until 2018, to purchase
                             
common stock at $.01 per share (B)
 
66 shs.
     
09/12/08
      65,571       129,725  
                    126,285       249,835  
Mail Communications Group, Inc.
                             
A provider of mail processing and handling services, lettershop services, and commercial printing services.
         
Limited Liability Company Unit (B)
 
24,109 uts.
      *          314,464       508,252  
Warrant, exercisable until 2014, to purchase
                             
common stock at $.01 per share (B)
 
3,375 shs.
     
05/04/07
      43,031       71,150  
* 05/04/07 and 01/02/08.
                  357,495       579,402  
                               
Manhattan Beachwear Holding Company
                             
A designer and distributor of women’s swimwear.
                             
12.5% Senior Subordinated Note due 2018
  $ 1,259,914      
01/15/10
      1,142,361       1,259,914  
15% Senior Subordinated Note due 2018
  $ 326,904      
10/05/10
      322,016       315,259  
Common Stock (B)
 
106 shs.
     
10/05/10
      106,200       90,867  
Common Stock Class B (B)
 
353 shs.
     
01/15/10
      352,941       301,984  
Warrant, exercisable until 2019, to purchase
                               
common stock at $.01 per share (B)
 
312 shs.
     
01/15/10
      283,738       267,255  
                      2,207,256       2,235,279  
 

18
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
Babson Capital Corporate Investors
 
Corporate Restricted Securities: (A) (Continued)
 
Principal Amount,
Shares, Units or
Ownership Percentage
   
Acquisition
Date
    Cost     Fair Value  
                                 
Marshall Physicians Services LLC
                               
A provider of emergency department and hospital medicine services to hospitals located in the state of Kentucky. The Company was founded in 1999 and is owned by seven practicing physicians.
13% Senior Subordinated Note due 2016
  $ 1,340,295      
09/20/11
    $ 1,317,973     $ 1,365,368  
Limited Liability Company Unit Class A (B)
 
8,700 uts.
     
09/20/11
      180,000       123,489  
Limited Liability Company Unit Class D (B)
 
874 uts.
     
09/20/11
      -       12,410  
                      1,497,973       1,501,267  
MBWS Ultimate Holdco, Inc.
A provider of services throughout North Dakota that address the fluid management and related transportation needs of an oil well.
12% Senior Subordinated Note due 2016
  $ 3,352,486       *          3,130,664       3,386,011  
Preferred Stock Series A (B)
 
4,164 shs.
     
09/07/10
      416,392       1,244,553  
Common Stock (B)
 
487 shs.
     
03/01/11
      48,677       145,557  
Common Stock (B)
 
458 shs.
     
09/07/10
      45,845       136,889  
Warrant, exercisable until 2020, to purchase
                               
common stock at $.01 per share (B)
 
310 shs.
     
03/01/11
      30,975       92,654  
Warrant, exercisable until 2016, to purchase
                               
common stock at $.01 per share (B)
 
1,158 shs.
     
09/07/10
      115,870       346,108  
* 09/07/10 and 03/01/11.
                    3,788,423       5,351,772  
                                 
MedSystems Holdings LLC
                               
A manufacturer of enteral feeding products, such as feeding tubes and other products related to assisted feeding.
 
13% Senior Subordinated Note due 2015
  $ 1,202,030      
08/29/08
      1,131,313       1,202,030  
Preferred Unit (B)
 
126 uts.
     
08/29/08
      125,519       158,370  
Common Unit Class A (B)
 
1,268 uts.
     
08/29/08
      1,268       61,208  
Common Unit Class B (B)
 
472 uts.
     
08/29/08
      120,064       22,775  
                      1,378,164       1,444,383  
MEGTEC Holdings, Inc.
                               
A supplier of industrial and environmental products and services to a broad array of industries.
                 
Preferred Stock (B)
 
107 shs.
     
09/24/08
      103,255       157,447  
Limited Partnership Interest (B)
 
1.40% int.
     
09/16/08
      388,983       537,715  
Warrant, exercisable until 2018, to purchase
                               
common stock at $.01 per share (B)
 
35 shs.
     
09/24/08
      33,268       46,752  
                      525,506       741,914  
Merex Holding Corporation
A provider of after-market spare parts and components, as well as Maintenance, Repair and Overhaul services for “out of production” or “legacy” aerospace and defense systems that are no longer effectively supported by the original equipment manufacturers.
14% Senior Subordinated Note due 2018
  $ 1,273,585      
09/22/11
      1,251,913       1,311,793  
Limited Liability Company Unit Series B (B)
 
467,833 uts.
     
09/22/11
      467,833       455,019  
                      1,719,746       1,766,812  
 

19
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
 
Corporate Restricted Securities: (A) (Continued)
 
Principal Amount,
Shares, Units or
Ownership Percentage
   
Acquisition
Date
   
Cost
   
Fair Value
 
                           
MicroGroup, Inc.
                         
A manufacturer of precision parts and assemblies, and a value-added supplier of metal tubing and bars.
           
7% Senior Subordinated Note due 2014 (D)
  $ 1,705,152       *        $ 1,635,166     $ 426,288  
Preferred Stock Series A (B)
 
980 shs.
     
10/10/12
      942,054       -  
Common Stock (B)
 
450 shs.
      *          450,000       -  
Common Stock Series B (B)
 
1,128 shs.
     
10/10/12
      11       -  
Warrant, exercisable until 2014, to purchase
                               
common stock at $.02 per share (B)
 
164 shs.
      *          162,974       -  
* 08/12/05 and 09/11/06.
                    3,190,205       426,288  
                                 
MNX Holding Company
                               
An international third party logistics company providing customized logistics services to customers across the globe.
         
14% Senior Subordinated Note due 2019
  $ 2,916,851      
11/02/12
      2,861,062       2,866,499  
Common Stock (B)
 
107 shs.
     
11/02/12
      107,143       67,861  
                      2,968,205       2,934,360  
Monessen Holding Corporation
                               
A designer and manufacturer of a broad line of gas, wood, and electric hearth products and accessories.
               
15% Senior Subordinated Note due 2015 (D)
  $ 1,556,056      
06/28/11
      1,034,632       -  
7% Senior Subordinated Note due 2014 (D)
  $ 2,550,000      
06/28/11
      2,420,572       -  
Warrant, exercisable until 2014, to purchase
                               
common stock at $.02 per share (B)
 
152 shs.
     
03/31/06
      138,125       -  
                      3,593,329       -  
Motion Controls Holdings
                               
A manufacturer of high performance mechanical motion control and linkage products.
                         
14.25% Senior Subordinated Note due 2017
  $ 2,833,600      
11/30/10
      2,794,126       2,832,634  
Limited Liability Company Unit Class B-1 (B)
281,250 uts.
     
11/30/10
      -       224,873  
Limited Liability Company Unit Class B-2 (B)
 
25,504 uts.
     
11/30/10
      -       20,392  
                      2,794,126       3,077,899  
NABCO, Inc.
                               
A producer of explosive containment vessels in the United States.
                               
Common Stock (B)
 
809 shs.
     
12/20/12
      578,174       331,309  
 

20
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
Babson Capital Corporate Investors
 
Corporate Restricted Securities: (A) (Continued)  
Principal Amount,
Shares, Units or
Ownership Percentage
   
Acquisition
Date
    Cost     Fair Value  
                           
NetShape Technologies, Inc.                          
A manufacturer of powder metal and metal injection molded precision components used in industrial, consumer, and other applications.  
14% Senior Subordinated Note due 2014
  $ 2,004,985      
02/02/07
    $ 1,889,743     $ 1,904,736  
Limited Partnership Interest of
                               
Saw Mill PCG Partners LLC (B)
 
2.73% int.
     
02/01/07
      1,110,810       -  
Limited Liability Company Unit Class D of
                               
Saw Mill PCG Partners LLC (B)
 
17 uts.
      *          16,759       -  
Limited Liability Company Unit Class D-1 of
                               
Saw Mill PCG Partners LLC (B)
 
229 uts.
     
09/30/09
      228,858       385,073  
Limited Liability Company Unit Class D-2 of
                               
Saw Mill PCG Partners LLC (B)
 
128 uts.
     
04/29/11
      65,256       88,912  
* 12/18/08 and 09/30/09.
                    3,311,426       2,378,721  
                                 
Newark Group, Inc.
                               
A major producer of paper products from recycled materials.
                               
Common Stock (B)
 
134,520 shs.
     
09/02/10
      796,863       320,763  

Nicoat Acquisitions LLC
A manufacturer of water-based and ultraviolet coatings for high-performance graphic arts, packaging and other specialty coating applications.
14% Senior Subordinated Note due 2018
  $ 1,458,613      
11/05/10
      1,360,819       1,473,199  
Limited Liability Company Unit Series B (B)
 
51,724 uts.
     
11/05/10
      51,724       61,504  
Limited Liability Company Unit Series B (B)
 
104,792 uts.
     
11/05/10
      104,792       124,607  
Limited Liability Company Unit Series F (B)
 
156,516 uts.
     
11/05/10
      -       274,811  
                      1,517,335       1,934,121  
Northwest Mailing Services, Inc.
A producer of promotional materials for companies that use direct mail as part of their customer retention and loyalty programs.
12% Senior Subordinated Note due 2016
  $ 2,818,421       *          2,475,489       2,792,320  
Limited Partnership Interest (B)
 
3,287 uts.
      *          328,679       72,165  
Warrant, exercisable until 2019, to purchase
                               
common stock at $.01 per share (B)
 
4,920 shs.
      *          492,016       108,027  
* 07/09/09 and 08/09/10.
                    3,296,184       2,972,512  
                                 
NT Holding Company
                               
A leading developer, manufacturer and provider of medical products used primarily in interventional pain management.
       
12% Senior Subordinated Note due 2019
  $ 2,649,351      
02/02/11
      2,475,373       2,675,845  
Common Stock (B)
 
377 shs.
      *          377,399       344,627  
Warrant, exercisable until 2021, to purchase
                               
common stock at $.01 per share (B)
 
176 shs.
     
02/02/11
      158,961       160,954  
* 02/02/11 and 06/30/11.
                    3,011,733       3,181,426  
 

21
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
 
Corporate Restricted Securities: (A) (Continued)
 
Principal Amount,
Shares, Units or
Ownership Percentage
   
Acquisition
Date
   
Cost
   
Fair Value
 
                           
O E C Holding Corporation
                         
A provider of elevator maintenance, repair and modernization services.
                     
13% Senior Subordinated Note due 2017
  $ 1,333,333      
06/04/10
    $ 1,247,291     $ 1,284,755  
Preferred Stock Series A (B)
 
1,661 shs.
     
06/04/10
      166,062       60,447  
Preferred Stock Series B (B)
 
934 shs.
     
06/04/10
      93,376       33,989  
Common Stock (B)
 
1,032 shs.
     
06/04/10
      1,032       -  
                      1,507,761       1,379,191  
Ontario Drive & Gear Ltd.
                               
A manufacturer of all-wheel drive, off-road amphibious vehicles and related accessories.
 
Limited Liability Company Unit (B)
 
3,667 uts.
     
01/17/06
      572,115       1,433,700  
Warrant, exercisable until 2013, to purchase
                               
common stock at $.01 per share (B)
 
619 shs.
     
01/17/06
      170,801       242,059  
                      742,916       1,675,759  
P K C Holding Corporation
                               
A manufacturer of plastic film and badges for the general industrial, medical, and food industries.
                 
14% Senior Subordinated Note due 2016
  $ 3,068,772      
12/21/10
      3,030,290       3,099,459  
Preferred Stock Class A (B)
 
54 shs.
     
12/21/10
      340,718       541,238  
Common Stock (B)
 
54 shs.
     
12/21/10
      25,500       -  
                      3,396,508       3,640,697  
P P T Holdings LLC
                               
A high-end packaging solutions provider that targets customers who have multiple packaging needs, require a high number of low volume SKUs, short lead times, technical expertise, and overall supply chain management.  
15% Senior Subordinated Note due 2017
  $ 2,869,874      
12/20/10
      2,828,324       2,846,869  
Limited Liability Company Unit Class A (B)
 
99 uts.
     
12/20/10
      318,215       242,445  
Limited Liability Company Unit Class B (B)
 
99 uts.
     
12/20/10
      3,214       242,445  
                      3,149,753       3,331,759  
Pacific Consolidated Holdings LLC
                               
A manufacturer of rugged, mobile liquid and gaseous oxygen and nitrogen generating systems used in the global defense, oil and gas, and medical sectors.  
0% Senior Subordinated Note due 2014   $ 79,688       12/18/12       -       79,688  
 
Paradigm Packaging, Inc.                          
A manufacturer of plastic bottles and closures for the nutritional, pharmaceutical, personal care, and food packaging markets.
12% Senior Subordinated Note due 2016
  $ 1,593,750      
12/19/00
      1,590,896       1,593,750  
Warrant, exercisable until 2016, to purchase
                               
common stock at $.01 per share (B)
 
372 shs.
     
12/21/00
      265,625       122,739  
                      1,856,521       1,716,489  
 

22
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
Babson Capital Corporate Investors
 
Corporate Restricted Securities: (A) (Continued)
 
Principal Amount,
Shares, Units or
Ownership Percentage
   
Acquisition
Date
    Cost     Fair Value  
                               
Pearlman Enterprises, Inc.                              
A developer and distributor of tools, equipment, and supplies to the natural and engineered stone industry.
Preferred Stock Series A (B)
 
2,334 shs.
     
05/22/09
    $ 111,508     $ -  
Preferred Stock Series B (B)
 
13,334 shs.
     
05/22/09
      547,872       -  
Common Stock (B)
 
40,540 shs.
     
05/22/09
      1,877,208       -  
                    2,536,588       -  
Petroplex Inv Holdings LLC
                             
A leading provider of acidizing services to E&P customers in the Permian Basin.
                         
16% Senior Subordinated Note due 2018
  $ 2,660,971      
11/29/12
      2,597,921       2,627,092  
Limited Liability Company Unit (B)
375,000 uts.
     
11/29/12
      375,000       288,330  
                      2,972,921       2,915,422  
Postle Aluminum Company LLC
                               
A manufacturer and distributor of aluminum extruded products.
                               
15% Senior Subordinated Note due 2013
  $ 1,664,942      
06/03/10
      1,658,143       1,664,942  
Limited Liability Company Unit Class A (B)
 
1,384 uts.
     
10/02/06
      510,000       237,211  
Limited Liability Company Unit (B)
 
143 uts.
     
05/22/09
      642       24,508  
Warrant, exercisable until 2016, to purchase
                               
common stock at $.01 per share (B)
 
8,595 shs.
     
10/02/06
      124,644       1,473,089  
                      2,293,429       3,399,750  
Precision Wire Holding Company
                               
A manufacturer of specialty medical wires that are used in non-elective minimally invasive surgical procedures.
         
Warrant, exercisable until 2019, to purchase
                               
common stock at $.01 per share (B)
 
206 shs.
     
11/12/09
      203,944       287,300  
                                 
Qualis Automotive LLC
                               
A distributor of aftermarket automotive brake and chassis products.
                               
Common Stock (B)
354,167 shs.
     
05/28/04
      354,166       301,934  
Warrant, exercisable until 2014, to purchase
                               
common stock at $.01 per share (B)
377,719 shs.
     
05/28/04
      377,719       322,013  
                      731,885       623,947  
R A J Manufacturing Holdings LLC
                               
A designer and manufacturer of women’s swimwear sold under a variety of licensed brand names.
                 
14.5% Senior Subordinated Note due 2014
  $ 1,570,531      
12/15/06
      1,536,307       1,497,491  
Limited Liability Company Unit (B)
 
2,828 uts.
     
12/15/06
      282,810       107,480  
Warrant, exercisable until 2014, to purchase
                               
common stock at $.01 per share (B)
 
3 shs.
     
12/15/06
      131,483       50,686  
                      1,950,600       1,655,657  
 

23
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
 
Corporate Restricted Securities: (A) (Continued)
 
Principal Amount,
Shares, Units or
Ownership Percentage
   
Acquisition
Date
    Cost     Fair Value  
                                 
REVSpring, Inc.
                               
A provider of accounts receivable management and revenue cycle management services to customers in the healthcare, financial and utility industries.
 
14% Senior Subordinated Note due 2018
  $ 3,430,488       *        $ 3,374,322     $ 3,482,012  
Limited Liability Company Unit Class A (B)
 
40,643 uts.
      *          406,432       476,267  
* 10/21/11 and 08/03/12.
                    3,780,754       3,958,279  
                                 
RM Holding Company
                               
A specialty distributor of home medical care equipment.
                               
13% Senior Subordinated Note due 2018
  $ 1,380,952      
02/09/12
      1,307,251       1,422,381  
Preferred Stock (B)
119,037 shs.
     
02/09/12
      119,037       127,903  
Common Stock (B)
 
1,108 shs.
     
02/09/12
      11       88,965  
Warrant, exercisable until 2022, to purchase
                               
preferred stock A at $.01 per share (B)
 
36,263 shs.
     
02/09/12
      35,940       38,280  
Warrant, exercisable until 2022, to purchase
                               
preferred stock B at $.01 per share (B)
 
21,202 shs.
     
02/09/12
      21,202       22,782  
Warrant, exercisable until 2022, to purchase
                               
common stock at $.01 per share (B)
 
556 shs.
     
02/09/12
      -       44,610  
                      1,483,441       1,744,921  
Rose City Holding Company
                               
A designer and printer of folding cartons and packaging for food and beverage manufacturers on the West Coast.
         
14.5% Senior Subordinated Note due 2018
  $ 1,416,885      
12/11/12
      1,389,793       1,400,143  
Preferred Stock (B)
 
93,749 shs.
     
12/11/12
      93,749       87,005  
Common Stock (B)
 
94 shs.
     
12/11/12
      9       -  
                      1,483,551       1,487,148  
Safety Infrastructure Solutions
                               
A provider of trench safety equipment to a diverse customer base across multiple end markets in Texas and the Southwestern United States.
 
15% Senior Subordinated Note due 2018
  $ 1,968,750      
03/30/12
      1,942,505       2,008,125  
Preferred Stock (B)
 
6,294 shs.
     
03/30/12
      251,758       270,039  
Common Stock (B)
 
2,949 shs.
     
03/30/12
      29,492       52,553  
                      2,223,755       2,330,717  
Sencore Holding Company
                               
A designer, manufacturer, and marketer of decoders, receivers and modulators sold to broadcasters, satellite, cable and telecom operators for encoding/decoding analog and digital transmission video signals.
 
12.5% Senior Subordinated Note due 2014 (D)
  $ 2,185,882      
01/15/09
      1,560,231       546,470  
 

24
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
Babson Capital Corporate Investors
 
   
Principal Amount,
                   
   
Shares, Units or
                   
Corporate Restricted Securities: (A) (Continued)
 
Ownership Percentage
   
Acquisition
Date
    Cost     Fair Value  
                                 
Signature Systems Holdings Company
A seller and installer of a variety of modular surfaces, industrial matting and related products used for ground protection.
12.5% Senior Subordinated Note due 2021
  $ 1,812,211      
03/15/13
    $ 1,708,352     $ 1,809,497  
Common Stock (B)
 
181 shs.
     
03/15/13
      181,221       172,159  
Warrant, exercisable until 2023, to purchase
                               
common stock at $.01 per share (B)
 
74 shs.
     
03/15/13
      67,958       1  
                      1,957,531       1,981,657  
Smart Source Holdings LLC
                               
A short-term computer rental company.
                               
12% Senior Subordinated Note due 2015
  $ 2,223,076       *          2,134,104       2,223,076  
Limited Liability Company Unit (B)
 
619 uts.
      *          638,061       619,697  
Warrant, exercisable until 2015, to purchase
                               
common stock at $.01 per share (B)
 
157 shs.
      *          164,769       156,990  
* 08/31/07 and 03/06/08.
                    2,936,934       2,999,763  

Snacks Parent Corporation
The world’s largest provider of trail mixes and a leading provider of snack nuts, dried fruits, and other healthy snack products.
13% Senior Subordinated Note due 2017
  $ 2,668,828      
11/12/10
      2,549,562       2,695,516  
Preferred Stock A (B)
 
3,395 shs.
     
11/12/10
      322,495       428,681  
Preferred Stock B (B)
 
1,575 shs.
     
11/12/10
      149,650       198,924  
Common Stock (B)
 
19,737 shs.
     
11/12/10
      19,737       86,770  
Warrant, exercisable until 2020, to purchase
                               
common stock at $.01 per share (B)
 
5,418 shs.
     
11/12/10
      5,418       23,821  
                      3,046,862       3,433,712  
SouthernCare Holdings, Inc.
                               
A hospice company providing palliative care services to terminally ill patients.
           
Common Stock (B)
 
2,727 shs.
     
12/01/11
      272,727       254,911  
                               
Spartan Foods Holding Company
                               
A manufacturer of branded pizza crusts and pancakes.
                               
14.25% Senior Subordinated Note due 2017
  $ 2,267,934      
12/15/09
      2,030,495       2,164,213  
Warrant, exercisable until 2018, to purchase
                               
common stock at $.01 per share (B)
 
257 shs.
     
12/15/09
      227,109       76,007  
                      2,257,604       2,240,220  
Specialty Commodities, Inc.
                               
A distributor of specialty food ingredients.
                               
Common Stock (B)
 
30,000 shs.
     
10/23/08
      300,000       225,951  
Warrant, exercisable until 2018, to purchase
                               
common stock at $.01 per share (B)
 
11,054 shs.
     
10/23/08
      100,650       83,256  
                      400,650       309,207  
 

25
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
 
   
Principal Amount,
                   
   
Shares, Units or
                   
Corporate Restricted Securities: (A) (Continued)
 
Ownership
Percentage
   
Acquisition
Date
    Cost     Fair Value  
                                 
Stag Parkway Holding Company
                         
A distributor of RV parts and accessories in the United States.
                         
13% Senior Subordinated Note due 2018
  $ 2,723,933      
12/19/12
    $ 2,597,716     $ 2,700,576  
Common Stock (B)
 
284 shs.
     
12/19/12
      283,688       269,506  
Warrant, exercisable until 2020, to purchase
                               
common stock at $.01 per share (B)
 
83 shs.
     
12/19/12
      76,435       1  
                      2,957,839       2,970,083  
Strata/WLA Holding Corporation
A leading independent anatomic pathology laboratory that conducts over 320,000 tests annually to customers in 40 U.S. states and in Canada and Venezuela.
14.5% Senior Subordinated Note due 2018
  $ 2,877,446      
07/01/11
      2,831,111       2,589,701  
Preferred Stock Series A (B)
 
228 shs.
     
07/01/11
      228,137       91,479  
                      3,059,248       2,681,180  
Sundance Investco LLC
                               
A provider of post-production services to producers of movies and television shows.
                         
Limited Liability Company Unit Class A (B)
 
6,429 shs.
     
03/31/10
      -       -  

Sunrise Windows Holding Company
A manufacturer and marketer of premium vinyl windows exclusively selling to the residential remodeling and replacement market.
14% Senior Subordinated Note due 2017   $ 3,022,644      
12/14/10
      2,889,446       3,006,229  
14% Senior Subordinated PIK Note due 2017   $ 244,790      
08/17/12
      235,100       243,461  
Common Stock (B)
 
115 shs.
     
12/14/10
      114,504       46,664  
Warrant, exercisable until 2020, to purchase
                               
common stock at $.01 per share (B)
 
112 shs.
     
12/14/10
      111,747       45,543  
                      3,350,797       3,341,897  
Synteract Holdings Corporation
                               
A provider of outsourced clinical trial management services to pharmaceutical and biotechnology companies.
       
14% Senior Subordinated Note due 2019   $ 3,298,356      
09/02/08
      3,168,971       3,298,356  
Preferred Stock Series D (B)
 
485 shs.
     
02/27/13
      48,503       20,713  
Redeemable Preferred Stock Series A (B)
 
1,280 shs.
     
09/02/08
      12,523       -  
Warrant, exercisable until 2018, to purchase
                               
common stock at $.01 per share (B)
 
12,803 shs.
     
09/02/08
      112,693       -  
                      3,342,690       3,319,069  
 

26
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
Babson Capital Corporate Investors
 
   
Principal Amount,
                   
   
Shares, Units or
                   
Corporate Restricted Securities: (A) (Continued)
 
Ownership
Percentage
   
Acquisition
Date
    Cost     Fair Value  
                                 
Terra Renewal LLC                                
A provider of wastewater residual management and required environmental reporting, permitting, nutrient management planning and record keeping to companies involved in poultry and food processing.
12% Senior Subordinated Note due 2014 (D)
  $ 1,162,110       *        $ 1,127,650     $ -  
7.44% Term Note due 2013 (C)
  $ 1,244,254      
08/10/12
      1,244,254       1,057,616  
9.25% Term Note due 2013 (C)
  $ 2,743      
08/31/12
      2,743       2,332  
Common Stock Class B
 
55 shs.
      *          7,783       -  
Limited Partnership Interest of
                               
Saw Mill Capital Fund V, LLC (B)
 
3.97% int.
      **          205,558       -  
Warrant, exercisable until 2016, to purchase
                               
common stock at $.01 per share (B)
 
72 shs.
     
04/28/06
      59,041       -  
* 04/28/06 and 09/13/06.
                    2,647,029       1,059,948  
** 03/01/05 and 10/10/08.
                               

Torrent Group Holdings, Inc.
A contractor specializing in the sales and installation of engineered drywells for the retention and filtration of stormwater and nuisance water flow.
14.5% Senior Subordinated Note due 2014 (D)
  $ 2,455,561      
10/26/07
      2,147,354       2,367,707  
Series B Preferred Stock (B)
 
182 shs.
     
03/31/10
      -       273,710  
Common Stock (B)
 
515 shs.
     
03/31/10
      414,051       -  
                      2,561,405       2,641,417  
Transpac Holding Company
                               
A designer, importer and wholesaler of home décor and seasonal gift products.
               
12% Senior Subordinated Note due 2015
  $ 1,773,006      
10/31/07
      1,693,365       1,692,269  
Common Stock (B)
 
209 shs.
     
10/31/07
      208,589       10,711  
Warrant, exercisable until 2015, to purchase
                               
common stock at $.01 per share (B)
 
94 shs.
     
10/31/07
      87,607       4,836  
                      1,989,561       1,707,816  
Tranzonic Companies (The)
                               
A producer of commercial and industrial supplies, such as safety products, janitorial supplies, work apparel, washroom and restroom supplies and sanitary care products.
13% Senior Subordinated Note due 2015
  $ 1,084,800      
02/05/98
      1,083,285       1,084,800  
Common Stock (B)
 
630 shs.
     
02/04/98
      630,000       1,225,801  
Warrant, exercisable until 2015, to purchase
                               
common stock at $.01 per share (B)
 
444 shs.
     
02/05/98
      368,832       863,898  
                      2,082,117       3,174,499  
 

27
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
 
   
Principal Amount,
                   
   
Shares, Units or
                   
Corporate Restricted Securities: (A) (Continued)
 
Ownership
Percentage
   
Acquisition
Date
    Cost     Fair Value  
                                 
Truck Bodies & Equipment International
                               
A designer and manufacturer of accessories for heavy and medium duty trucks, primarily dump bodies, hoists, various forms of flat-bed bodies, landscape bodies and other accessories.
12% Senior Subordinated Note due 2013
  $ 2,309,541       *        $ 2,226,948     $ 2,309,541  
Preferred Stock Series B (B)
 
241 shs.
     
10/20/08
      241,172       171,163  
Common Stock (B)
 
742 shs.
      *          800,860       -  
Warrant, exercisable until 2014, to purchase
                               
common stock at $.02 per share (B)
 
153 shs.
      *          159,894       -  
Warrant, exercisable until 2018, to purchase
                               
common stock at $.01 per share (B)
 
1,054 shs.
     
10/20/08
      -       -  
* 07/19/05 and 12/22/05.
                    3,428,874       2,480,704  
                                 
TruStile Doors, Inc.
                               
A manufacturer and distributor of interior doors.
                               
Limited Liability Company Unit (B)
 
11,775 uts.
     
02/28/11
      218,750       393,200  
Warrant, exercisable until 2016, to purchase
                               
common stock at $.01 per share (B)
 
5,781 shs.
     
04/11/03
      68,059       45,275  
                      286,809       438,475  
U-Line Corporation
                               
A manufacturer of high-end, built-in, undercounter ice making, wine storage and refrigeration appliances.
       
Common Stock (B)
 
182 shs.
     
04/30/04
      182,200       205,471  
Warrant, exercisable until 2016, to purchase
                               
common stock at $.01 per share (B)
 
230 shs.
     
04/30/04
      211,736       259,850  
                      393,936       465,321  
U M A Enterprises, Inc.
                               
An importer and wholesaler of home décor products.
                               
Convertible Preferred Stock (B)
 
887 shs.
     
02/08/08
      886,956       1,422,396  
                               
Visioneering, Inc.
                               
A designer and manufacturer of tooling and fixtures for the aerospace industry.
                         
10.5% Senior Secured Term Loan due 2013
  $ 725,735      
05/17/07
      725,001       726,540  
13% Senior Subordinated Note due 2014
  $ 648,530      
05/17/07
      631,717       648,530  
18% PIK Convertible Preferred Stock (B)
 
37,381 shs.
     
03/13/09
      72,519       121,787  
Common Stock (B)
123,529 shs.
     
05/17/07
      123,529       99,946  
Warrant, exercisable until 2014, to purchase
                               
common stock at $.01 per share (B)
 
35,006 shs.
     
05/17/07
      55,055       28,323  
                      1,607,821       1,625,126  
 

28
 
 

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
Babson Capital Corporate Investors
 
Corporate Restricted Securities: (A) (Continued)
 
Principal Amount,
Shares, Units or
Ownership
Percentage
   
Acquisition
Date
    Cost     Fair Value  
                                 
Vitex Packaging Group, Inc.
                               
A manufacturer of specialty packaging, primarily envelopes and tags used on tea bags.
 
Class B Unit (B)
 
767,881 uts.
     
10/29/09
    $ 348,058     $ -  
Class C Unit (B)
 
850,000 uts.
     
10/29/09
      780,572       738,853  
Limited Liability Company Unit Class A (B)
 
723,465 uts.
      *          433,222       -  
Limited Liability Company Unit Class B (B)
 
182,935 uts.
     
07/19/04
      182,935       -  
* 07/19/04 and 10/29/09.
                  1,744,787       738,853  
                               
Wellborn Forest Holding Company
                             
A manufacturer of semi-custom kitchen and bath cabinetry.
                             
12.13% Senior Subordinated Note due 2016
  $ 1,721,250      
11/30/06
      1,638,669       1,549,125  
Common Stock (B)
 
191 shs.
     
11/30/06
      191,250       -  
Warrant, exercisable until 2016, to purchase
                               
  common stock at $.01 per share (B)
 
95 shs.
     
11/30/06
      86,493       -  
                      1,916,412       1,549,125  
Wheaton Holding Corporation
                               
A distributor and manufacturer of laboratory supply products and packaging.
                         
Preferred Stock Series B (B)
 
2,109 shs.
     
06/08/10
      210,924       -  
Common Stock (B)
 
1,058 shs.
     
06/08/10
      1,058       -  
                      211,982       -  
Whitcraft Holdings, Inc.
                               
A leading independent manufacturer of precision formed, machined, and fabricated flight-critical aerospace components.
 
12% Senior Subordinated Note due 2018
  $ 2,383,562      
12/16/10
      2,225,252       2,407,397  
Common Stock (B)
 
616 shs.
     
12/16/10
      616,438       448,041  
Warrant, exercisable until 2018, to purchase
                               
  common stock at $.02 per share (B)
 
166 shs.
     
12/16/10
      148,003       120,390  
                      2,989,693       2,975,828  
Workplace Media Holding Company
                               
A direct marketer specializing in providing advertisers with access to consumers in the workplace.
   
13% Senior Subordinated Note due 2015 (D)
  $ 1,235,800      
05/14/07
      1,136,081       -  
Limited Partnership Interest (B)
 
23.16% int.
     
05/14/07
      115,804       -  
Warrant, exercisable until 2015, to purchase
                               
  common stock at $.02 per share (B)
 
88 shs.
     
05/14/07
      83,462       -  
                      1,335,347       -  
WP Supply Holding Corporation
                               
A distributor of fresh fruits and vegetables to grocery wholesalers and foodservice distributors in the upper Midwest.
 
14.5% Senior Subordinated Note due 2018
  $ 2,641,286      
11/03/11
      2,596,759       2,642,286  
Common Stock (B)
 
4,500 shs.
     
11/03/11
      450,000       421,794  
                      3,046,759       3,064,080  
                                 
Total Private Placement Investments (E)
                  $ 235,649,590     $ 226,652,800  
 

29
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
 
   
Interest
   
Due
   
Principal
         
Market
 
Corporate Restricted Securities: (A) (Continued)
 
Rate
   
Date
   
Amount
   
Cost
   
Value
 
                               
Rule 144A Securities - 6.70%:
                             
                               
Bonds - 6.65%
                             
                                       
Audatex North America, Inc.
    6.750 %  
06/15/18
    $ 250,000     $ 250,000     $ 268,125  
Calpine Corporation
    7.500    
02/15/21
      675,000       692,414       740,812  
Cornerstone Chemical Company
    9.375    
03/15/18
      750,000       770,625       765,000  
Energy Future Holdings
    10.000    
12/01/20
      400,000       403,787       450,000  
First Data Corporation
    7.375    
06/15/19
      850,000       852,877       904,187  
First Data Corporation
    8.750    
01/15/22
      1,000,000       1,009,467       1,057,500  
FMG Resources
    7.000    
11/01/15
      750,000       769,501       785,625  
FMG Resources
    6.875    
04/01/22
      1,000,000       961,567       1,047,500  
Halcón Resources Corporation
    9.750    
07/15/20
      1,000,000       1,055,185       1,105,000  
Hilcorp Energy Company
    7.625    
04/15/21
      725,000       695,927       797,500  
Hovnanian Enterprises, Inc.
    7.250    
10/15/20
      1,000,000       1,000,000       1,107,500  
International Automotive Component
    9.125    
06/01/18
      1,000,000       951,091       990,000  
Lear Corporation
    4.750    
01/15/23
      750,000       735,000       731,250  
Lennar Corporation
    4.750    
11/15/22
      750,000       738,750       735,000  
Meritor, Inc.
    7.875    
03/01/26
      516,000       506,387       523,418  
MGM Resorts International
    6.750    
10/01/20
      1,000,000       1,000,000       1,060,000  
Milacron Financial
    7.750    
02/15/21
      500,000       500,000       516,875  
Neustar, Inc.
    4.500    
01/15/23
      750,000       725,625       716,250  
Nielsen Finance LLC
    4.500    
10/01/20
      1,000,000       1,000,000       998,750  
Tronox Finance LLC
    6.375    
08/15/20
      750,000       731,250       727,500  
Valeant Pharmaceuticals International
    6.750    
10/01/17
      70,000       69,737       75,163  
Valeant Pharmaceuticals International
    7.000    
10/01/20
      880,000       881,664       948,200  
Welltec A/S
    8.000    
02/01/19
      750,000       736,523       819,375  
Total Bonds
                          17,037,377       17,870,530  
 

30
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
Babson Capital Corporate Investors
 
    Interest    
Due
               
Market
 
Corporate Restricted Securities: (A) (Continued)
  Rate    
Date
   
Shares
   
Cost
   
Value
 
                                 
Convertible Preferred Stock - 0.00%
                               
ETEX Corporation (B)
                  777     $ -     $ -  
Total Convertible Preferred Stock
                          -       -  
                                       
Preferred Stock - 0.05%
                                     
Ally Financial
                  143       45,009       141,418  
TherOX, Inc. (B)
                  103       -       -  
Total Preferred Stock
                          45,009       141,418  
                                       
Common Stock - 0.00%
                                     
Touchstone Health Partnership (B)
                  1,168       -       -  
Total Common Stock
                          -       -  
                                       
Total Rule 144A Securities
                          17,082,386       18,011,948  
                                       
Total Corporate Restricted Securities
                        $ 252,731,976     $ 244,664,748  
 

31
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
 
   
Interest
   
Due
   
Principal
         
Market
 
Corporate Public Securities -10.57%: (A)
 
Rate
   
Date
   
Amount
   
Cost
   
Value
 
                               
Bonds - 10.34%
                             
Accuride Corp
    9.500 %  
08/01/18
    $ 1,500,000     $ 1,538,881     $ 1,533,750  
Affinia Group, Inc.
    9.000    
11/30/14
      550,000       551,284       551,381  
Ally Financial, Inc.
    5.500    
02/15/17
      1,500,000       1,528,826       1,622,614  
Alta Mesa Financial Services
    9.625    
10/15/18
      1,500,000       1,501,497       1,582,500  
Arch Coal, Inc.
    7.000    
06/15/19
      150,000       150,000       135,375  
ArvinMeritor
    10.625    
03/15/18
      1,000,000       1,021,113       1,078,750  
Avis Budget Car Rental
    9.750    
03/15/20
      750,000       750,000       885,007  
B E Aerospace, Inc.
    6.875    
10/01/20
      850,000       868,797       940,312  
Calumet Specialty Products Partners L.P.
    9.375    
05/01/19
      1,500,000       1,510,072       1,680,000  
CCO Holdings Capital Corporation
    7.250    
10/30/17
      750,000       766,471       809,063  
Chemtura Corporation
    7.875    
09/01/18
      500,000       525,692       540,000  
Cooper-Standard Automotive
    8.500    
05/01/18
      750,000       792,533       817,500  
Crosstex Energy L.P.
    8.875    
02/15/18
      225,000       221,722       243,563  
Energy Transfer Equity LP
    7.500    
10/15/20
      100,000       100,000       115,250  
EP Energy/EP Finance Inc.
    9.375    
05/01/20
      1,000,000       1,016,218       1,155,000  
Evertec, Inc.
    11.000    
10/01/18
      1,335,000       1,384,901       1,515,225  
Fidelity National Information
    7.875    
07/15/20
      125,000       125,000       140,938  
Headwaters, Inc.
    7.625    
04/01/19
      850,000       850,200       909,500  
Health Management Association
    6.125    
04/15/16
      750,000       767,791       823,125  
Huntington Ingalls Industries
    7.125    
03/15/21
      750,000       777,768       815,625  
Michael Foods, Inc.
    9.750    
07/15/18
      75,000       75,000       83,438  
Nexstar Broadcasting Group, Inc.
    8.875    
04/15/17
      175,000       174,256       192,500  
Nexeo Solutions LLC
    8.375    
03/01/18
      40,000       40,000       39,000  
NRG Energy, Inc.
    8.500    
06/15/19
      750,000       771,685       823,125  
Nuveen Investments
    5.500    
09/15/15
      1,500,000       1,396,411       1,473,750  
Omnova Solutions, Inc.
    7.875    
11/01/18
      1,500,000       1,527,174       1,597,500  
Perry Ellis International, Inc.
    7.875    
04/01/19
      750,000       743,167       787,500  
Pinnacle Foods Finance LLC
    9.250    
04/01/15
      227,000       229,900       227,851  
Precision Drilling Corporation
    6.625    
11/15/20
      750,000       771,884       800,625  
Quebecor Media, Inc.
    7.750    
03/15/16
      570,000       551,385       580,687  
Quiksilver, Inc.
    6.875    
04/15/15
      315,000       303,767       314,606  
Spectrum Brands, Inc.
    9.500    
06/15/18
      125,000       123,741       141,563  
Suburban Propane Partners, L.P.
    7.500    
10/01/18
      168,000       177,544       182,280  
Thermadyne Holdings Corporation
    9.000    
12/15/17
      750,000       791,997       817,500  
Tomkins, Inc.
    9.250    
10/01/18
      107,000       107,000       119,171  
Unit Corporation
    6.625    
05/15/21
      1,000,000       988,227       1,047,500  
Venoco, Inc.
    8.875    
02/15/19
      500,000       508,425       485,000  
Visteon Corporation
    6.750    
04/15/19
      180,000       180,000       192,600  
Total Bonds
                          26,210,329       27,800,674  
 

32
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
Babson Capital Corporate Investors
 
    Interest    
Due
               
Market
 
Corporate Public Securities: (A) (Continued)
  Rate    
Date
   
Shares
   
Cost
   
Value
 
                                 
Common Stock - 0.23%
                               
Bally Total Fitness Holding Corporation (B) (F)
                  29       2       2  
Chase Packaging Corporation (B)
                  9,541       -       95  
Intrepid Potash, Inc. (B)
                  365       11,680       6,847  
Nortek, Inc. (B)
                  175       1       12,436  
Rue21, Inc. (B)
                  650       12,350       19,104  
Supreme Industries, Inc. (B)
                  125,116       267,319       578,036  
Total Common Stock
                          291,352       616,520  
                                       
Total Corporate Public Securities
                        $ 26,501,681     $ 28,417,194  
                                   
     
Interest
   
Due
   
Principal
           
Market
 
Short-Term Securities:
   
Rate/Yield^
   
Date
   
Amount
   
Cost
   
Value
 
Commercial Paper - 6.58%
                                     
Bank of Nova Scotia
    0.120 %  
04/12/13
    $ 4,000,000     $ 3,999,853     $ 3,999,853  
Export-Import Bank
    0.170    
04/15/13
      3,500,000       3,499,769       3,499,769  
Florida Power and Light Company
    0.160    
04/02/13
      2,696,000       2,695,988       2,695,988  
Ryder System Inc.
    0.260    
04/01/13
      3,000,000       3,000,000       3,000,000  
South Carolina Electric & Gas
    0.270    
04/10/13
      1,500,000       1,499,899       1,499,899  
Virginia Electric Power
    0.320    
04/11/13
      3,000,000       2,999,733       2,999,733  
Total Short-Term Securities
                        $ 17,695,242     $ 17,695,242  
                                       
Total Investments
    108.19 %                 $ 296,928,899     $ 290,777,184  
Other Assets
    5.35                             14,364,594  
Liabilities
    (13.54 )                           (36,383,224)  
Total Net Assets
    100.00 %                         $ 268,758,554  
 
(A)
In each of the convertible note, warrant, convertible preferred and common stock investments, the issuer has agreed to provide certain registration rights.
(B)
Non-income producing security.
(C)
Variable rate security; rate indicated is as of March 31, 2013.
(D)
Defaulted security; interest not accrued.
(E)
Illiquid security.  As of March 31, 2013, the value of these securities amounted to $226,652,800 or 84.34% of net assets.
(F)
Security valued at fair value using methods determined in good faith by or under the direction of the Board of Trustees.
^
Effective yield at purchase
PIK
Payment-in-kind
 

33
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
 
Industry Classification:  
Fair Value/
Market Value
     
Fair Value/
Market Value
 
               
AEROSPACE - 3.11%       BROADCASTING & ENTERTAINMENT - 0.07%
A E Company, Inc.
  $ 1,059,407  
HOP Entertainment LLC
  $ -  
B E Aerospace, Inc.
    940,312  
Nexstar Broadcasting Group, Inc.
    192,500  
Merex Holding Corporation
    1,766,812  
Sundance Investco LLC
    -  
Visioneering, Inc.
    1,625,126  
Workplace Media Holding Company
    -  
Whitcraft Holdings, Inc.
    2,975,828         192,500  
      8,367,485  
BUILDINGS & REAL ESTATE - 2.09%
 
AUTOMOBILE - 7.40%
       
ACP Cascade Holdings LLC
    -  
Accuride Corp
    1,533,750  
Hovnanian Enterprises, Inc.
    1,107,500  
ArvinMeritor
    1,078,750  
Lennar Corporation
    735,000  
Audatex North America, Inc.
    268,125  
Sunrise Windows Holding Company
    3,341,897  
Avis Budget Car Rental
    885,007  
TruStile Doors, Inc.
    438,475  
Cooper-Standard Automotive
    817,500         5,622,872  
DPL Holding Corporation
    3,804,480  
CHEMICAL, PLASTICS & RUBBER - 2.25%
Ideal Tridon Holdings, Inc.
    389,387  
Capital Specialty Plastics, Inc.
    1,031,767  
International Automotive Component
    990,000  
Cornerstone Chemical Company
    765,000  
J A C Holding Enterprises, Inc.
    2,881,492  
Nicoat Acquisitions LLC
    1,934,121  
Jason Partners Holdings LLC
    48,185  
Omnova Solutions, Inc.
    1,597,500  
K & N Parent, Inc.
    3,314,558  
Tronox Finance LLC
    727,500  
Lear Corporation
    731,250         6,055,888  
Meritor, Inc.
    523,418  
CONSUMER PRODUCTS - 10.33%
       
Ontario Drive & Gear Ltd.
    1,675,759  
AMS Holding LLC
    2,997,921  
Qualis Automotive LLC
    623,947  
Baby Jogger Holdings LLC
    3,260,487  
Tomkins, Inc.
    119,171  
Bravo Sports Holding Corporation
    2,380,423  
Visteon Corporation
    192,600  
Custom Engineered Wheels, Inc.
    1,829,137  
      19,877,379  
gloProfessional Holdings, Inc.
    2,981,472  
BEVERAGE, DRUG & FOOD - 7.73%
       
Handi Quilter Holding Company
    1,799,880  
1492 Acquisition LLC
    2,981,480  
K N B Holdings Corporation
    4,660,155  
Eatem Holding Company
    3,283,323  
Manhattan Beachwear Holding Company
    2,235,279  
F F C Holding Corporation
    3,386,637  
Perry Ellis International, Inc.
    787,500  
Golden County Foods Holding, Inc.
    -  
R A J Manufacturing Holdings LLC
    1,655,657  
Hospitality Mints Holding Company
    2,120,322  
Tranzonic Companies (The)
    3,174,499  
JMH Investors LLC
    2,945,477         27,762,410  
Michael Foods, Inc.
    83,438            
Snacks Parent Corporation
    3,433,712            
Spartan Foods Holding Company
    2,240,220            
Specialty Commodities, Inc.
    309,207            
      20,783,816            
 

34
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
Babson Capital Corporate Investors
 
   
Fair Value/
     
Fair Value/
 
Industry Classification: (Continued)
 
Market Value
     
Market Value
 
               
CONTAINERS, PACKAGING & GLASS - 4.39%     DIVERSIFIED/CONGLOMERATE, SERVICE - 8.23%  
Chase Packaging Corporation
  $ 95  
A S C Group, Inc.
  $ 276,674  
Flutes, Inc.
    872,466  
A W X Holdings Corporation
    551,250  
P K C Holding Corporation
    3,640,697  
Advanced Technologies Holdings
    1,494,292  
P P T Holdings LLC
    3,331,759  
Affinia Group, Inc.
    551,381  
Paradigm Packaging, Inc.
    1,716,489  
Apex Analytix Holding Corporation
    2,427,558  
Rose City Holding Company
    1,487,148  
Church Services Holding Company
    1,635,211  
Vitex Packaging Group, Inc.
    738,853  
Clough, Harbour and Associates
    384,328  
      11,787,507  
Crane Rental Corporation
    2,442,726  
DISTRIBUTION - 5.71%
       
ELT Holding Company
    3,150,606  
Blue Wave Products, Inc.
    1,570,026  
HVAC Holdings, Inc.
    2,977,464  
BP SCI LLC
    2,976,999  
Insurance Claims Management, Inc.
    316,419  
Duncan Systems, Inc.
    1,040,198  
Mail Communications Group, Inc.
    579,402  
RM Holding Company
    1,744,921  
Nexeo Solutions LLC
    39,000  
Signature Systems Holdings Company
    1,981,657  
Northwest Mailing Services, Inc.
    2,972,512  
Stag Parkway Holding Company
    2,970,083  
Pearlman Enterprises, Inc.
    -  
WP Supply Holding Corporation
    3,064,080  
Safety Infrastructure Solutions
    2,330,717  
      15,347,964         22,129,540  
DIVERSIFIED/CONGLOMERATE,
       
ELECTRONICS - 1.03%
       
MANUFACTURING - 10.53%
       
Connecticut Electric, Inc.
    2,777,633  
A H C Holding Company, Inc.
    285,179            
Advanced Manufacturing Enterprises LLC
    2,899,536  
FINANCIAL SERVICES - 6.43%
       
Arrow Tru-Line Holdings, Inc.
    1,699,875  
Ally Financial, Inc.
    1,764,032  
C D N T, Inc.
    1,162,527  
Alta Mesa Financial Services
    1,582,500  
F G I Equity LLC
    1,808,042  
Bank of Nova Scotia
    3,999,853  
G C Holdings
    4,674,566  
Export-Import Bank
    3,499,769  
K P H I Holdings, Inc.
    797,348  
Nielsen Finance LLC
    998,750  
K P I Holdings, Inc.
    2,991,437  
Nuveen Investments
    1,473,750  
LPC Holding Company
    3,958,713  
REVSpring, Inc.
    3,958,279  
MEGTEC Holdings, Inc.
    741,914         17,276,933  
Nortek, Inc.
    12,436            
O E C Holding Corporation
    1,379,191            
Postle Aluminum Company LLC
    3,399,750            
Truck Bodies & Equipment International
    2,480,704            
      28,291,218            
 

35
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
 
Industry Classification: (Continued)   Fair Value/
Market Value
      Fair Value/
Market Value
 
               
HEALTHCARE, EDUCATION & CHILDCARE - 7.40%
 
MACHINERY - 6.03%
     
American Hospice Management Holding LLC $
    3,953,617  
ABC Industries, Inc.
  $ 1,460,992  
CHG Alternative Education Holding Company
    3,043,997  
Arch Global Precision LLC
    3,412,955  
GD Dental Services LLC
    2,979,723  
E S P Holdco, Inc.
    2,824,538  
Healthcare Direct Holding Company
    2,142,307  
M V I Holding, Inc.
    249,835  
Marshall Physicians Services LLC
    1,501,267  
Milacron Financial
    516,875  
SouthernCare Holdings, Inc.
    254,911  
Motion Controls Holdings
    3,077,899  
Strata/WLA Holding Corporation
    2,681,180  
NetShape Technologies, Inc.
    2,378,721  
Synteract Holdings Corporation
    3,319,069  
Pacific Consolidated Holdings LLC
    79,688  
Touchstone Health Partnership
    -  
Supreme Industries, Inc.
    578,036  
Wheaton Holding Corporation
    -  
Thermadyne Holdings Corporation
    817,500  
      19,876,071  
Welltec A/S
    819,375  
                16,216,414  
HOME & OFFICE FURNISHINGS, HOUSEWARES & DURABLE CONSUMER PRODUCTS - 3.24%   MEDICAL DEVICES/BIOTECH - 3.06%        
Connor Sport Court International, Inc.
    2,423,541  
Chemtura Corporation
    540,000  
H M Holding Company
    -  
ETEX Corporation
    -  
Home Décor Holding Company
    680,649  
Evertec, Inc.
    1,515,225  
Monessen Holding Corporation
    -  
Health Management Association
    823,125  
Quiksilver, Inc.
    314,606  
MedSystems Holdings LLC
    1,444,383  
Spectrum Brands, Inc.
    141,563  
MicroGroup, Inc.
    426,288  
Transpac Holding Company
    1,707,816  
NT Holding Company
    3,181,426  
U-Line Corporation
    465,321  
Precision Wire Holding Company
    287,300  
U M A Enterprises, Inc.
    1,422,396  
TherOX, Inc.
    -  
Wellborn Forest Holding Company
    1,549,125         8,217,747  
      8,705,017  
MINING, STEEL, IRON & NON-PRECIOUS
   
LEISURE, AMUSEMENT & ENTERTAINMENT - 0.39%
 
METALS - 0.68%
       
Bally Total Fitness Holding Corporation
    2  
FMG Resources
    1,833,125  
MGM Resorts International
    1,060,000            
      1,060,002  
NATURAL RESOURCES - 1.51%
       
         
Arch Coal, Inc.
    135,375  
         
Headwaters, Inc.
    909,500  
         
Intrepid Potash, Inc.
    6,847  
         
Virginia Electric Power
    2,999,733  
                4,051,455  
 

36
 
 

 
 
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
March 31, 2013
(Unaudited)
Babson Capital Corporate Investors
 
   
Fair Value/
     
Fair Value/
 
Industry Classification: (Continued)
 
Market Value
     
Market Value
 
               
OIL & GAS - 5.82%
     
TRANSPORTATION - 2.64%
     
Calumet Specialty Products Partners L.P.
  $ 1,680,000  
Huntington Ingalls Industries
  $ 815,625  
Energy Transfer Equity LP
    115,250  
MNX Holding Company
    2,934,360  
EP Energy/EP Finance Inc.
    1,155,000  
NABCO, Inc.
    331,309  
Halcón Resources Corporation
    1,105,000  
Ryder System Inc.
    3,000,000  
Hilcorp Energy Company
    797,500         7,081,294  
International Offshore Services LLC
    -  
UTILITIES - 2.40%
       
MBWS Ultimate Holdco, Inc.
    5,351,772  
Calpine Corporation
    740,812  
Petroplex Inv Holdings LLC
    2,915,422  
Crosstex Energy L.P.
    243,563  
Precision Drilling Corporation
    800,625  
Florida Power and Light Company
    2,695,988  
Suburban Propane Partners, L.P.
    182,280  
Energy Future Holdings
    450,000  
Unit Corporation
    1,047,500  
NRG Energy, Inc.
    823,125  
Venoco, Inc.
    485,000  
South Carolina Electric & Gas
    1,499,899  
      15,635,349         6,453,387  
PHARMACEUTICALS - 0.67%
       
WASTE MANAGEMENT/POLLUTION - 1.38%
 
CorePharma LLC
    785,892  
Terra Renewal LLC
    1,059,948  
Valeant Pharmaceuticals International
    1,023,363  
Torrent Group Holdings, Inc.
    2,641,417  
      1,809,255         3,701,365  
PUBLISHING/PRINTING - 0.34%
                 
Newark Group, Inc.
    320,763            
Quebecor Media, Inc.
    580,687  
Total Investments - 108.19%
  $ 290,777,184  
      901,450            
RETAIL STORES - 0.09%
                 
Pinnacle Foods Finance LLC
    227,851            
Rue21, Inc.
    19,104            
      246,955            
TECHNOLOGY - 2.10%
                 
Fidelity National Information
    140,938            
First Data Corporation
    1,961,687            
Sencore Holding Company
    546,470            
Smart Source Holdings LLC
    2,999,763            
      5,648,858            
TELECOMMUNICATIONS - 1.14%
                 
All Current Holding Company
    1,540,982            
CCO Holdings Capital Corporation
    809,063            
Neustar, Inc.
    716,250            
      3,066,295            
 

37
 
 

 
Fair Value Hierarchy

The Company categorizes its investments measured at fair value in three levels, based on the inputs and assumptions used to determine fair value. These levels are as follows:

Level 1  –  quoted prices in active markets for identical securities

Level 2  –  other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3  –  significant unobservable inputs (including the Trust’s own assumptions in determining the fair value of investments)
 
 
The following is a summary of the inputs used to value the Trust’s net assets as of March 31, 2013:

Assets:
 
Total
   
Level 1
   
Level 2
   
Level 3
 
Restricted Securities
                       
Corporate Bonds
  $ 193,569,315     $ -     $ 17,870,530     $ 175,698,785  
Common Stock - U.S.
    21,348,815       -       -       21,348,815  
Preferred Stock
    12,895,862       -       141,418       12,754,444  
Partnerships and LLCs
    16,850,756       -       -       16,850,756  
Public Securities
                               
Corporate Bonds
    27,800,674       -       27,800,674       -  
Common Stock - U.S.
    616,520       616,518       -       2  
Short-term Securities
    17,695,242       -       17,695,242       -  
                                 
Total
  $ 290,777,184     $ 616,518     $ 63,507,864     $ 226,652,802  

See information disaggregated by security type and industry classification in the Consolidated Schedule of Investments.

 
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

   
 
                            Transfers in    
 
 
   
Beginning
   
 
                      and/or    
Ending
 
Assets:
 
balance at
12/31/2012
   
Included in
earnings
   
Purchases
   
Sales
   
Prepayments
   
out of
Level 3
   
balance at
03/31/2013
 
Restricted Securities
                                         
Corporate Bonds
  $ 191,789,043     $ 9,337     $ 6,020,197     $ (4,069,097 )   $ (18,050,695 )   $ -     $ 175,698,785  
Common Stock - U.S.
    18,594,948       2,589,295       532,650       (368,078 )     -       -       21,348,815  
Preferred Stock
    12,415,845       290,098       48,501       -       -       -       12,754,444  
Partnerships and LLCs
    15,933,742       948,264       (31,250 )     -       -       -       16,850,756  
Public Securities
                                                       
Common Stock
    -       2       -       -       -       -       2  
    $ 238,733,578     $ 3,836,996     $ 6,570,098     $ (4,437,175 )   $ (18,050,695 )   $ -     $ 226,652,802  
 
 
 
 

 
ITEM 2.  CONTROLS AND PROCEDURES.

(a) The principal executive officer and principal financial officer of the Registrant evaluated the effectiveness of the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act") as of a date within 90 days of the filing date of this report and based on that evaluation have concluded that such disclosure controls and procedures are effective to provide reasonable assurance that material information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

(b) There have been changes in the Registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act)("internal controls") that occurred during the Registrant's last fiscal quarter.  The Registrant's investment adviser, Babson Capital Management LLC, who maintains the Registrant's internal controls, revised its internal controls to oversee State Street Bank & Trust who now provides certain administrative and accounting services to the Registrant.

 
ITEM 3.  EXHIBITS.

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) are attached hereto as an exhibit.
 
 
 
 
 
 
 
 

 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)  Babson Capital Corporate Investors
             
 
By (Signature and Title)*
/s/ Michael L. Klofas

Michael L. Klofas, President


Date     May 30, 2013


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By (Signature and Title)*
/s/ Michael L. Klofas

Michael L. Klofas, President

 
Date     May 30, 2013



By (Signature and Title)*
/s/ James M. Roy

James M. Roy, Vice President and
Chief Financial Officer

 
Date     May 30, 2013


* PRINT THE NAME AND TITLE OF EACH SIGNING OFFICER UNDER HIS OR HER SIGNATURE.