CHARLOTTE, N.C., Jan. 22, 2016 /PRNewswire/ -- The Board of Trustees of Babson Capital Participation Investors (the "Trust") met on January 22, 2016. The Trust's Trustees determined that the Trust's December 31, 2015 net asset value ("NAV") is $135,349,634 or $13.10 per share based on 10,328,391 shares outstanding. The Trust's December 31, 2014 NAV was $137,568,919 or $13.36 per share based on 10,301,085 shares outstanding. The Trust reported a NAV of $140,680,541 or $13.64 per share as of September 30, 2015, based on 10,314,898 shares outstanding. Unlike the NAV reported for quarters ended March 31, June 30, and September 30, the NAV for the quarter ended December 31 reflects the declaration of the quarterly dividend of $0.27 per share, which was paid on January 15, 2016. All figures for 2015 are unaudited.
Net investment income for the year ended December 31, 2015 was $9,903,669 or $0.96 per share. This represents a decrease from the year ended December 31, 2014, when net investment income was $10,597,214 or $1.03 per share. For the quarter ended December 31, 2015, net investment income was $2,499,923 or $0.24 per share, of which approximately $116,583 or $0.01 per share represented income due to nonrecurring items. For the quarter ended December 31, 2014, net investment income was $2,627,029 or $0.26 per share. The Trust earned net investment income of $2,074,082 or $0.20 per share during the quarter ended September 30, 2015.
The Trust realized net capital losses of $939,385 or $0.09 per share during the quarter ended December 31, 2015, which resulted in realized net capital gains for the year ended December 31, 2015 of $502,639 or $0.05 per share. By comparison, for the year ended December 31, 2014 the Trust realized net capital losses of $6,258,981 or $0.61 per share. During the quarter ended September 30, 2015, the Trust realized net capital gains of $920,100 or $0.09 per share.
Estimated taxable income of the Trust exceeded net investment income reported in accordance with generally accepted accounting principles ("GAAP") by $1,500,000 or $0.15 per share, for the year ended December 31, 2015. For the year ended December 31, 2015, the Trust's estimated taxable capital loss was $654,166 or $0.06 per share, as compared to GAAP realized capital gains of $502,639 or $0.05 per share. Tax versus GAAP net investment income and capital gains figures, respectively, differ from each other due to income and capital gains realized by PI Subsidiary Trust (which the Trust received in the form of a dividend) and, in part, due to GAAP and tax timing differences in the recognition of various income and expense items. This dividend, of an estimated $1,500,000, from the PI Subsidiary Trust was treated as ordinary income for tax purposes for the Trust
The market price of the Trust as of December 31, 2015 was $13.75, which equates to a 4.96% premium over the December 31, 2015 NAV per share. The Trust's average quarter-end premium for the 3, 5 and 10-year periods was 3.03%, 9.80% and 7.97%, respectively.
The Board of Trustees of the Trust announced that the annual shareholders' meeting will be held on Friday, April 22, 2016 at 1:00 PM at Massachusetts Mutual Life Insurance Company, 1295 State Street, Springfield, MA. Shareholders of record at the close of business on February 24, 2016 will be entitled to vote at the meeting.
In addition to reviewing the Trust's performance during the past year, the shareholders will be asked to vote on the following matter at the April shareholder meeting:
- Election of three members of the Trust's Board of Trustees— Edward P. Grace, Robert E. Joyal and Susan B. Sweeney
Babson Capital Participation Investors is a closed-end management investment company advised by Babson Capital Management LLC. Its shares are traded on the New York Stock Exchange under the trading symbol ("MPV").
Per share amounts are rounded to the nearest cent.
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 approximately $223 billion in assets under management as of December 31, 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 31 countries. Learn more at www.babsoncapital.com
SOURCE Babson Capital Management LLC