CHARLOTTE, N.C., Dec. 11, 2015 /PRNewswire/ -- The Board of Trustees of Babson Capital Participation Investors (the "Trust") met today. The Trust's Trustees declared a quarterly dividend of 27 cents per share payable on January 15, 2016 to shareholders of record on December 31, 2015. The quarterly dividend is considered ordinary income for tax purposes and will be reported on IRS Form 1099-Div. Although a 27 cent-per-share dividend was declared in each of the three preceding quarters, no assurance can be given that the Trust will be able to maintain that dividend level in the future.
The Trustees of the PI Subsidiary Trust (the "Subsidiary Trust"), a wholly-owned subsidiary of the Trust, declared a $1,500,000 distribution payable to the Trust on December 3, 2015. The distribution is being made from accumulated income and capital gains. The distribution from accumulated income and realized gains is treated as qualified dividends by the Trust. The footnotes to the Trust's September 30, 2015 Quarterly Report to Shareholders contain more information about the relationship between the Trust and the Subsidiary Trust.
The Trust does not anticipate having realized net long-term gains at the end of the current fiscal year. To the extent that there are realized net long-term gains, the Trust may retain those gains and pay the required federal tax thereon. If necessary, IRS Form 2439, Notice to Shareholders of Undistributed Long-Term Capital Gains, will be mailed to shareholders by the end of January. The Trust's 2015 unaudited financial results are expected to be available in late-January.
Babson Capital Participation Investors is a closed-end management investment company advised by Babson Capital Management LLC, a member of the MassMutual Financial Group. Its shares are traded on the New York Stock Exchange under the trading symbol ("MPV").
Cautionary Notice: Certain statements contained in this press release may be "forward looking" statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made and which reflect management's current estimates, projections, expectations or beliefs, and which are subject to risks and uncertainties that may cause actual results to differ materially. These statements are subject to change at any time based upon economic, market or other conditions and may not be relied upon as investment advice or an indication of the fund's trading intent. References to specific securities are not recommendations of such securities, and may not be representative of the fund's current or future investments. We undertake no obligation to publicly update forward looking statements, whether as a result of new information, future events, or otherwise.
About Babson Capital Management
Babson Capital Management LLC is one of the world's leading asset management firms, with over $223 billion in assets under management as of September 30, 2015. Through proprietary research, analysis and a focus on investment fundamentals, the firm and its global affiliates develop products and strategies that leverage its broad expertise in global fixed income, structured products, middle market finance, commercial real estate, alternatives and equities. A member of the MassMutual Financial Group, Babson maintains a strong global footprint with operations on four continents and clients in over 20 countries. Learn more at www.babsoncapital.com
Brian Whelan, Babson Capital Management, 704.805.7244, email@example.com
SOURCE Babson Capital Management LLC