Edgar Filing: BABSON CAPITAL CORPORATE INVESTORS

bcci-ncsr_17842.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number 811-2183

Babson Capital Corporate Investors

(Exact name of registrant as specified in charter)

1500 Main Street, P.O. Box 15189, Springfield, MA 01115-5189

(Address of principal executive offices) (Zip code)

Christopher A. DeFrancis

Vice President, Secretary and Chief Legal Officer

1500 Main Street, Suite 2800

P.O. Box 15189

Springfield, MA 01115-5189

(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: 06/30/15

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507.

ITEM 1. REPORT TO STOCKHOLDERS.

Attached hereto is the semi-annual shareholder report transmitted to shareholders pursuant to Rule 30e-1 of the Investment Company Act of 1940, as amended.

Babson Capital Corporate Investors
Report for the Six Months Ended June 30, 2015

Adviser Babson Capital Management LLC 1500 Main Street, P.O. Box 15189 Springfield, Massachusetts 01115-5189 Independent Registered Public Accounting Firm KPMG LLP Boston, Massachusetts 02110	Transfer Agent & Registrar DST Systems, Inc. P.O. Box 219086 Kansas City, Missouri 64121-9086 1-800-647-7374 Internet Website www.babsoncapital.com/mci

Counsel to the Trust Ropes & Gray LLP Boston, Massachusetts 02110 Custodian State Street Bank and Trust Company Boston, Massachusetts 02116		Babson Capital Corporate Investors c/o Babson Capital Management LLC 1500 Main Street, Suite 2200 Springfield, Massachusetts 01115 (413) 226-1516

Investment Objective and Policy Babson Capital Corporate Investors (the “Trust”) is a closed-end management investment company, first offered to the public in 1971, whose shares are traded on the New York Stock Exchange under the trading symbol “MCI”. The Trust’s share price can be found in the financial section of most newspapers under either the New York Stock Exchange listings or Closed-End Fund Listings. The Trust’s investment objective is to maintain a portfolio of securities providing a current yield and at the same time offering an opportunity for capital gains. The Trust’s principal investments are privately placed, below-investment grade, long-term debt obligations with equity features such as common stock, warrants, conversion rights, or other equity features and, occasionally, preferred stocks. The Trust typically purchases these investments, which are not publicly tradable, directly from their issuers in private placement transactions. These investments are typically mezzanine debt instruments with accompanying private equity securities made to small or middle market companies. In addition, the Trust may invest, subject to certain limitations, in marketable investment grade debt securities, other marketable debt securities (including high yield securities) and marketable common stocks. Below-investment grade or high yield securities have predominantly speculative characteristics with respect to the capacity of the issuer to pay interest and repay principal. Babson Capital Management LLC (“Babson Capital”) manages the Trust on a total return basis. The Trust distributes substantially all of its net income to shareholders each year. Accordingly, the Trust pays dividends to shareholders in January, May, August, and November. The Trust pays dividends to its shareholders in cash, unless the shareholder elects to participate in the Dividend Reinvestment and Share Purchase Plan.		Form N-Q The Trust files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. This information is available (i) on the SEC’s website at http:// www.sec.gov; and (ii) at the SEC’s Public Reference Room in Washington, DC (which information on their operation may be obtained by calling 1-800-SEC-0330). A complete schedule of portfolio holdings as of each quarter-end is available upon request by calling, toll-free, 866-399-1516. Proxy Voting Policies & Procedures; Proxy Voting Record The Trustees of the Trust have delegated proxy voting responsibilities relating to the voting of securities held by the Trust to Babson Capital. A description of Babson Capital’s proxy voting policies and procedures is available (1) without charge, upon request, by calling, toll-free 866-399-1516; (2) on the Trust’s website: http://www.babsoncapital.com/mci; and (3) on the SEC’s website at http://www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (1) on the Trust’s website: http://www.babsoncapital.com/mci; and (2) on the SEC’s website at http://www.sec.gov.

Babson Capital Corporate Investors

TO OUR SHAREHOLDERS

July 31, 2015

We are pleased to present the June 30, 2015 Quarterly Report of Babson Capital Corporate Investors (the “Trust”).

The Board of Trustees declared a quarterly dividend of $0.30 per share, payable on August 14, 2015 to shareholders of record on August 3, 2015. The Trust paid a $0.30 per share dividend for the preceding quarter. The Trust earned $0.28 per share of net investment income, including $0.03 per share of non-recurring income, for the second quarter of 2015, compared to $0.28 per share, including $0.03 per share of non-recurring income, in the previous quarter.

During the second quarter, the net assets of the Trust increased to $293,410,574 or $14.97 per share compared to $293,255,436 or $14.99 per share on March 31, 2015. This translates into a 1.9% total return for the quarter, based on the change in the Trust’s net assets assuming the reinvestment of all dividends. Longer term, the Trust returned 11.3%, 14.9%, 14.9%, 12.0%, and 13.9% for the 1, 3, 5, 10, and 25-year periods, respectively, based on the change in the Trust’s net assets assuming the reinvestment of all dividends.

The Trust’s share price increased 3.4% during the quarter, from $15.54 per share as of March 31, 2015 to $16.07 per share as of June 30, 2015. The Trust’s market price of $16.07 per share equates to a 7.3% premium over the June 30, 2015 net asset value per share of $14.97. The Trust’s average quarter-end premium for the 3, 5 and 10-year periods was 10.7%, 15.8% and 12.6%, respectively. U.S. equity markets, as approximated by the Russell 2000 Index, increased 0.4% for the quarter. U.S. fixed income markets, as approximated by the Barclays Capital U.S. Corporate High Yield Index, was flat for the quarter.

The Trust closed six new private placement investments, as well as one add-on investment in an existing portfolio company, during the second quarter. The six new investments were in BlueSpire Holding, Inc., FMH Holdings Corporation, GlynnDevins Acquisition Corporation, Master Cutlery LLC, Power Stop Holdings LLC and Randy’s Worldwide Automotive, while the add-on investment was in Hartland Controls Holding Corporation. A brief description of these investments can be found in the Consolidated Schedule of Investments. The total amount invested by the Trust in these transactions was $18,533,000.

It was another active quarter for the Trust in terms of new investments. Middle market merger and acquisition activity, a key driver of deal flow for the Trust, has been strong in 2015. We expect deal flow to remain steady for the rest of the year, assuming no significant external shocks to the market, so we are optimistic about the level of new investment activity for the Trust through year end. The dark cloud on the horizon, however, continues to be the high purchase prices and leverage levels that are common in buyout transactions today. Average purchase price multiples for small companies continue to be at their highest levels in the past 15 years. Leverage multiples have also been elevated and are near their highs of the past 15 years. Though we are actively making new investments on behalf of the Trust in this market, we do so cautiously and with discipline, consistent with our longstanding investment philosophy of seeking to take prudent levels of risk and getting paid appropriately for the risk taken. We are not willing to provide financial leverage at levels that we believe are imprudent. This approach has served us well over the long term and through all kinds of market cycles.

The condition of the Trust’s existing portfolio remained solid through the second quarter. We had significantly more credit upgrades than downgrades during the quarter. The number of companies on our watch list and in default continues to be at or near the lowest level we have seen over the last five years. We exited four investments during the quarter, and benefited from a dividend associated with the recapitalization of one company. In three of these exits we realized gains, while our investment in MicroGoup, Inc. was realized at a loss. We continue to have a backlog of portfolio companies that are in the process of being sold, with a number of these expected to close this year. We had five portfolio companies fully or partially prepay their debt instruments held by the Trust during the quarter. This lower level of prepayment activity is welcome after the unprecedented levels of prepayments we experienced in 2013 and early 2014.

The Trust was able to maintain its $0.30 per share quarterly dividend for the second quarter even though net investment income per share, excluding non-recurring income, was once again below the dividend rate. Net investment income per share from recurring sources has been below the dividend rate for every quarter since the third quarter of 2013. As we have discussed in prior reports, net investment income is down due principally to the considerable reduction in the number of private debt securities in the portfolio resulting from the high level of exit and prepayment activity that occurred in 2013 and 2014. We have been able to maintain the $0.30 per share quarterly dividend with current income, non-recurring income and earnings carried forward from prior quarters. Over time, however, the Trust’s dividend-paying ability tends to be correlated with its recurring earnings capacity. Absent non-recurring income, earnings available for the quarterly dividend would have been $0.25 per share for the second quarter. This quarter, the Trust earned an additional $0.03 per share of non-recurring income, and utilized $0.02 per share of earnings carry-forwards to maintain the $0.30 per share quarterly dividend. Despite several strong quarters of new investment activity, we have not been able to grow the portfolio. It is unlikely that we will be able to rebuild the portfolio back to its former size and net income-producing capability in the near term. We cannot rely on non-recurring income due to its unpredictable nature. The Trust does continue to have available earnings carry-forwards which should be available to supplement recurring income for at least the third quarter. As a result, it is likely that later in 2015 we will have to reduce the dividend from the current $0.30 per share quarterly rate. As we move through the year, we and the Board of Trustees will continue to evaluate the current and future earnings capacity of the Trust and formulate a dividend strategy that is consistent with that earnings level.

Thank you for your continued interest in and support of Babson Capital Corporate Investors.

Sincerely,

Michael L. Klofas

President

* Based on market value of total investments (including cash)

Cautionary Notice: Certain statements contained in this report 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 Trust’s trading intent. References to specific securities are not recommendations of such securities, and may not be representative of the Trust’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.

Babson Capital Corporate Investors

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

June 30, 2015

(Unaudited)

Assets:
Investments
(See Consolidated Schedule of Investments)
Corporate restricted securities at fair value
(Cost - $192,502,808)	$	200,189,002
Corporate restricted securities at market value
(Cost - $55,127,872)		55,048,604
Corporate public securities at market value
(Cost - $48,752,119)		48,952,972

Total investments (Cost - $296,382,799)		304,190,578
Cash		19,314,754
Interest receivable		3,408,403
Receivable for investments sold		282,812
Other assets		3,627
Total assets		327,200,174
Liabilities:
Liabilities:
Note payable		30,000,000
Deferred tax liability		1,682,824
Investment advisory fee payable		916,908
Tax payable		682,978
Interest payable		202,400
Accrued expenses		304,490
Total liabilities		33,789,600
Total net assets	$	293,410,574

Net Assets:
Common shares, par value $1.00 per share	$	19,600,460
Additional paid-in capital		115,537,751
Retained net realized gain on investments, prior years		142,769,539
Undistributed net investment income		7,808,545
Accumulated net realized gain on investments		1,569,324
Net unrealized appreciation of investments		6,124,955
Total net assets	$	293,410,574
Common shares issued and outstanding (28,054,782 authorized)		19,600,460
Net asset value per share	$	14.97

See Notes to Consolidated Financial Statements

CONSOLIDATED STATEMENT OF OPERATIONS

For the six months ended June 30, 2015

(Unaudited)

Investment Income:
Interest	$	13,345,670
Dividends		436,022
Other		153,382
Total investment income		13,935,074
Expenses:
Expenses:
Investment advisory fees		1,833,331
Interest		792,000
Trustees’ fees and expenses		165,000
Professional fees		126,003
Reports to shareholders		45,000
Custodian fees		18,476
Other		60,052
Total expenses		3,039,862
Investment income - net		10,895,212
Net realized and unrealized gain on investments:
Net realized and unrealized gain on investments:
Net realized gain on investments before taxes		1,138,537
Income tax expense		(6,773	)
Net realized gain on investments after taxes		1,131,764

Net change in unrealized appreciation of investments before taxes		6,629,434
Net change in deferred income tax expense		(527,994	)
Net change in unrealized appreciation of investments after taxes		6,101,440

Net gain on investments		7,233,204

Net increase in net assets resulting from operations	$	18,128,416

See Notes to Consolidated Financial Statements

Babson Capital Corporate Investors

CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended June 30, 2015

(Unaudited)

Net increase in cash:
Cash flows from operating activities:
Purchases/Proceeds/Maturities from short-term portfolio securities, net	$	16,606,143
Purchases of portfolio securities		(53,671,581	)
Proceeds from disposition of portfolio securities		49,247,757
Interest, dividends and other income received		12,036,862
Interest expense paid		(792,000	)
Operating expenses paid		(2,196,391	)
Income taxes paid		(3,666,913	)
Net cash provided by operating activities		17,563,877

Cash flows from financing activities:
Cash dividends paid from net investment income		(11,730,225	)
Receipts for shares issued on reinvestment of dividends		1,022,094
Net cash used for financing activities		(10,708,131	)
Net increase in cash		6,855,746
Cash - beginning of year		12,459,008
Cash - end of period	$	19,314,754

Reconciliation of net increase in net assets to net cash provided by operating activities:

Net increase in net assets resulting from operations	$	18,128,416
Decrease in investments		3,152,857
Increase in interest receivable		(567,621	)
Increase in receivable for investments sold		(103,100	)
Decrease in other assets		34,000
Increase in deferred tax liability		527,994
Increase in investment advisory fee payable		41,501
Decrease in tax payable		(3,660,140	)
Increase in accrued expenses		9,970
Total adjustments to net assets from operations		(564,539	)

Net cash provided by operating activities	$	17,563,877

See Notes to Consolidated Financial Statements

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

	For the six months ended 06/30/2015 (Unaudited)			For the year ended 12/31/2014
Increase in net assets:
Operations:
Investment income - net	$	10,895,212		$	23,984,946
Net realized gain on investments after taxes		1,131,764			8,854,438
Net change in unrealized appreciation of investments after taxes		6,101,440			(84,222	)
Net increase in net assets resulting from operations		18,128,416			32,755,162

Increase from common shares issued on reinvestment of dividends
Common shares issued (2015 - 67,044; 2014 - 139,761)		1,022,094			2,065,868

Dividends to shareholders from:
Net investment income (2015 - $0.30 per share; 2014 - $1.20 per share)		(5,870,200	)		(23,378,280	)
Total increase in net assets		13,280,310			11,442,750

Net assets, beginning of year		280,130,264			268,687,514

Net assets, end of period/year (including undistributed net investment income of $7,808,545 and $2,783,533, respectively)	$	293,410,574		$	280,130,264

See Notes to Consolidated Financial Statements

Babson Capital Corporate Investors

CONSOLIDATED SELECTED FINANCIAL HIGHLIGHTS

Selected data for each share of beneficial interest outstanding:

	For the six
	months ended
	06/30/2015			For the years ended December 31,
	(Unaudited)			2014			2013			2012			2011 (a)
Net asset value:
Beginning of year	$	14.34		$	13.85		$	13.38		$	12.69		$	12.56

Net investment income (b)		0.56			1.23			1.18			1.28			1.29
Net realized and unrealized gain (loss) on investments		0.37			0.45			0.48			0.69			0.17

Total from investment operations		0.93			1.68			1.66			1.97			1.46

Dividends from net investment income to common shareholders		(0.30	)		(1.20	)		(1.20	)		(1.25	)		(1.34	)
Dividends from realized gain on investments to common
shareholders		—			—			—			(0.05	)		(0.01	)
Increase from dividends reinvested		0.00	(c)		0.01			0.01			0.02			0.02

Total dividends		(0.30	)		(1.19	)		(1.19	)		(1.28	)		(1.33	)

Net asset value: End of period/year	$	14.97		$	14.34		$	13.85		$	13.38		$	12.69
Per share market value:
End of period/year	$	16.07		$	15.89		$	14.93		$	15.28		$	17.99

Total investment return
Net asset value (d)		6.50	%		13.78	%		12.76	%		17.07	%		12.00	%
Market value (d)		3.12	%		16.53	%		5.93	%		(7.11)	%		27.92	%

Net assets (in millions):
End of period/year	$	293.41		$	280.13		$	268.69		$	257.38		$	241.94
Ratio of total expenses to average net assets	2.13		% (f)		3.66	%		2.42	%		3.17	%		2.42	%
Ratio of operating expenses to average net assets	1.57		% (f)		1.65	%		1.64	%		1.66	%		1.62	%
Ratio of interest expense to average net assets	0.55		% (f)		0.57	%		0.59	%		0.63	%		0.64	%
Ratio of income tax expense to average net assets (e)	0.01		% (f)		1.44	%		0.19	%		0.88	%		0.16	%
Ratio of net investment income to average net assets	7.62		% (f)		8.57	%		8.50	%		9.78	%		9.91	%
Portfolio turnover		16	%		38	%		34	%		34	%		21	%

(a)	Per share amounts were adjusted to reflect a 2:1 stock split effective February 18, 2011.

(b)	Calculated using average shares.

(c)	Rounds to less than $0.01 per share.

(d)

Net asset value return represents portfolio returns based on change in the Trust’s net asset value assuming the reinvestment of all dividends and distributions which differs from the total investment return based on the Trust’s market value due to the difference between the Trust’s net asset value and the market value of its shares outstanding; past performance is no guarantee of future results.

(e)

As additional information, this ratio is included to reflect the taxes paid on retained long-term gains. These taxes paid are netted against realized capital gains in the Statement of Operations. The taxes paid are treated as deemed distributions and a credit for the taxes paid is passed on to the shareholders.

(f)	Annualized.

Senior borrowings:
Total principal amount (in millions)	$	30	$	30	$	30	$	30	$	30
Asset coverage per $1,000 of indebtedness	$	10,780	$	10,338	$	9,956	$	9,579	$	9,065

See Notes to Consolidated Financial Statements

CONSOLIDATED SCHEDULE OF INVESTMENTS

June 30, 2015

(Unaudited)

Principal Amount,

Shares, Units or

Acquisition

Corporate Restricted Securities - 86.99%: (A)

Ownership Percentage

Date

Cost

Fair Value

Private Placement Investments - 68.23%: (C)

1492 Acquisition LLC

A leading producer of premium Italian cured meats and deli meats in the U.S.

14% Senior Subordinated Note due 10/17/2019

1,642,275

10/17/12

1,619,070

1,637,567

Limited Liability Company Unit Class A Common (B)

27,273 uts.

10/17/12

27,273

—

Limited Liability Company Unit Class A Preferred (B)

245 uts.

10/17/12

245,450

210,031

1,891,793

1,847,598

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.
14% Senior Subordinated Note due 12/21/2020	$	1,991,846	12/20/13	1,958,720	2,011,764
Limited Liability Company Unit Class A (B)	5,843 uts.		*	290,317	735,480
Limited Liability Company Unit Class B (B)	2,793 uts.		10/09/09	100,114	351,565
* 10/09/09 and 12/20/13.				2,349,151	3,098,809
A W X Holdings Corporation
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 12/20/2016 (D)	$	735,000	05/15/08	724,402	367,500
13% Senior Subordinated Note due 12/20/2016 (D)	$	735,000	05/15/08	673,096	—
Common Stock (B)	105,000 shs.		05/15/08	105,000	—
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B)	36,923 shs.		05/15/08	62,395	—
				1,564,893	367,500
ABC Industries, Inc.
ABC Industries, Inc.
A manufacturer of mine and tunneling ventilation products in the U.S.
13% Senior Subordinated Note due 07/31/2019	$	436,364	08/01/12	404,074	440,727
Preferred Stock Series A (B)	300,000 shs.		08/01/12	300,000	571,651
Warrant, exercisable until 2022, to purchase
common stock at $.02 per share (B)	53,794 shs.		08/01/12	101,870	97,142
				805,944	1,109,520
ACP Cascade Holdings LLC
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
Advanced Manufacturing Enterprises LLC
A designer and manufacturer of large, custom gearing products for a number of critical customer applications.
Limited Liability Company Unit (B)	4,669 uts.		*	498,983	599,105
* 12/07/12 and 07/11/13.

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

	Principal Amount,
	Shares, Units or
Corporate Restricted Securities: (A) (Continued)	Ownership Percentage		Date	Cost		Fair Value

Advanced Technologies Holdings
A provider of factory maintenance services to industrial companies.
Preferred Stock Series A (B)		626 shs.	12/27/07	$	309,806	$	1,031,612
Convertible Preferred Stock Series B (B)		52 shs.	01/04/11		40,800		86,493
					350,606		1,118,105

AFC - Dell Holding Corporation
A distributor and provider of inventory management services for “C-Parts” used by OEMs in their manufacturing and production facilities.
12.5% Senior Subordinated Note due 09/27/2020	$	2,405,234	03/27/15		2,358,905		2,432,907
Preferred Stock (B)		2,276 shs.	03/27/15		227,558		216,180
Common Stock (B)		703 shs.	03/27/15		703		668
					2,587,166		2,649,755

Airxcel Holdings
A leading manufacturer of a broad range of climate control solutions, including air-conditioners, heat pumps, cooking appliances, furnaces, powered vents, and water heaters.
12.5% Senior Subordinated Note due 11/18/2020	$	2,944,184	11/18/14		2,890,035		2,909,043
Limited Liability Company Unit		583 uts.	11/18/14		583,000		507,862
					3,473,035		3,416,905

American Hospice Management Holding LLC
A for-profit hospice care provider in the United States.
12% Senior Subordinated Note due 03/31/2020 (D)	$	2,337,496	*		2,337,229		2,298,560
Preferred Class A Unit (B)		3,223 uts.	**		322,300		—
Preferred Class B Unit (B)		1,526 uts.	06/09/08		152,626		121,100
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.					2,812,157		2,419,660
** 01/22/04 and 09/16/06.

AMS Holding LLC
A leading multi-channel direct marketer of high-value collectible coins and proprietary-branded jewelry and watches.
Limited Liability Company Unit Class A Preferred (B)		273 uts.	10/04/12		272,727		780,919

Animal Supply Company
A distributor of pet products to independent pet stores, veterinary clients and other pet specialty retailers.
9.5% Second Lien Term Loan due 09/17/2019	$	3,500,000	03/30/15		3,450,499		3,441,787

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

	Principal Amount,
	Shares, Units or		Acquisition
Corporate Restricted Securities: (A) (Continued)	Ownership Percentage		Date	Cost		Fair Value

Arch Global Precision LLC
A leading manufacturer of high tolerance precision components and consumable tools.
Limited Liability Company Unit Class B (B)		60 uts.	12/21/11	$	85,250	$	401,723
Limited Liability Company Unit Class C (B)		690 uts.	12/21/11		664,750		3,798,784
					750,000		4,200,507

ARI Holding Corporation
A leading national supplier of products used primarily by specialty contractors.
11.5% Senior Subordinated Note due 02/01/2020	$	3,400,640	*		3,353,705		3,410,048
Limited Partnership Interest		1,048 uts.	08/01/14		1,047,900		901,060
* 05/21/13 and 08/01/14.					4,401,605		4,311,108

Arrow Tru-Line Holdings, Inc.
A manufacturer of hardware for residential and commercial overhead garage doors in North America.
Preferred Stock (B)		51 shs.	10/16/09		50,670		213,415
Common Stock (B)		402 shs.	05/18/05		401,555		105,380
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B)		105 shs.	05/18/05		90,532		27,626
					542,757		346,421

Avantech Testing Services LLC
A manufacturer of custom Non-Destructive Testing (“NDT”) systems and provider of NDT and inspections services primarily to the oil country tubular goods market.
15% Senior Subordinated Note due 07/31/2021	$	1,103,851	07/31/14	1,086,149	551,926
Limited Liability Company Unit	75,000 uts.		07/31/14	750,000	502,276
				1,836,149	1,054,202

Blue Wave Products, Inc.
A distributor of pool supplies.
10% Senior Secured Term Note due 09/30/2018	$	580,851	10/12/12	573,676	580,851
13% Senior Subordinated Note due 09/30/2019	$	734,597	10/12/12	696,404	749,289
Common Stock (B)	114,894 shs.		10/12/12	114,894	264,783
Warrant, exercisable until 2022, to purchase
common stock at $.01 per share (B)	45,486 shs.		10/12/12	45,486	104,826
				1,430,460	1,699,749

BlueSpire Holding, Inc.
A marketing services firm that integrates strategy, technology, and content to deliver customized marketing solutions for clients in the senior living, financial services and healthcare end markets.
12.5% Senior Subordinated Note due 06/30/2021	$	3,181,800	6/30/15	3,118,184	3,181,800
Common Stock (B)	2,876 shs.		6/30/15	318,200	302,345
				3,436,384	3,484,145

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

Principal Amount,

Shares, Units or

Acquisition

Corporate Restricted Securities: (A) (Continued)

Ownership Percentage

Date

Cost

Fair Value

BP SCI LLC

A leading value-added distributor of branded pipes, valves, and fittings (PVF) to diversified end markets.

Limited Liability Company Unit Class A (B)

1,000 uts.

10/17/12

100,000

624,842

Limited Liability Company Unit Class B (B)

400 uts.

10/17/12

400,000

536,691

500,000

1,161,533

CG Holdings Manufacturing Company

A coating provider serving the automotive, agricultural, heavy truck and other end markets.

13% Senior Subordinated Note 11/01/2019

3,390,252

3,238,069

3,424,155

Preferred Stock (B)

3,241 shs.

324,054

362,680

Preferred Stock (B)

1,174 shs.

116,929

131,403

Common Stock (B)

337 shs.

35,673

173,150

Warrant, exercisable until 2023, to purchase

common stock at $.01 per share (B)

137 shs.

13,033

70,447

* 05/09/13 and 11/01/13.

3,727,758

4,161,835

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 01/19/2018	$	2,286,757	01/19/11	2,224,563	2,286,757
14% Senior Subordinated Note due 08/03/2019	$	596,566	08/03/12	588,716	602,532
Common Stock (B)	1,125 shs.		01/19/11	112,500	161,932
Warrant, exercisable until 2021, to purchase
common stock at $.01 per share (B)	884 shs.		01/19/11	87,750	127,288
				3,013,529	3,178,509

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 03/26/2018	$	1,280,667	03/26/12	1,257,406	1,271,574
10% Senior Subordinated Note due 09/12/2015	$	20,546	09/15/14	20,546	20,534
Common Stock (B)	3,981 shs.		*	398,100	232,615
Warrant, exercisable until 2022, to purchase
common stock at $.01 per share (B)	172 shs.		03/26/12	17,220	10,050
* 03/26/12, 05/25/12 and 06/19/12.				1,693,272	1,534,773

Clarion Brands Holding Corp.
A portfolio of six over-the-counter (OTC) pharmaceutical brands whose products are used to treat tinnitus or ringing of the ear, excessive sweating, urinary tract infections, muscle pain, and skin conditions.
12.5% Senior Subordinated Note due 09/30/2021	$	3,217,748	10/01/14	3,158,563	3,226,905
Common Stock (B)	3,182 shs.		10/01/14	318,182	253,269
				3,476,745	3,480,174

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

Principal Amount,

Shares, Units or

Acquisition

Corporate Restricted Securities: (A) (Continued)

Ownership Percentage

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

705,102

Compass Chemical International LLC
A manufacturer and supplier of standard and specialty formulated chemicals, primarily phosphoric acid derivatives called phosphonates.
13% Senior Subordinated Note due 10/4/2020	$	3,052,870	03/04/15	2,993,941	2,991,552
Limited Liability Company Unit (B)	467 uts.		03/04/15	466,700	439,530
				3,460,641	3,431,082

Connecticut Electric, Inc.
A supplier and distributor of electrical products sold into the retail and wholesale markets.
Limited Liability Company Unit Class A (B)	156,046 uts.		01/12/07	156,046	149,106
Limited Liability Company Unit Class C (B)	112,873 uts.		01/12/07	112,873	115,791
Limited Liability Company Unit Class D (B)	1,268,437 uts.		05/03/10	—	1,458,909
Limited Liability Company Unit Class E (B)	2,081 uts.		05/03/10	—	4,850
				268,919	1,728,656

CTM Holding, Inc.
A leading owner and operator of coin-operated children’s rides, penny presses and candy kiosks in the U.S.
15% Senior Subordinated Note due 11/22/2019	$	2,480,048	11/22/13	2,441,582	2,508,639
Common Stock (B)	155 shs.		11/22/13	886,364	750,523
				3,327,946	3,259,162

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.
Preferred Stock PIK (B)	296 shs.		10/26/09	295,550	435,827
Preferred Stock Series A (B)	216 shs.		10/27/09	197,152	318,432
Common Stock (B)	72 shs.		10/26/09	72,238	—
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B)	53 shs.		10/27/09	48,608	—
				613,548	754,259

DPL Holding Corporation
A distributor and manufacturer of aftermarket undercarriage parts for medium and heavy duty trucks and trailers.
14% Senior Subordinated Note due 05/04/2019	$	3,270,165	05/04/12	3,229,060	3,270,165
Preferred Stock (B)	61 shs.		05/04/12	605,841	734,507
Common Stock (B)	61 shs.		05/04/12	67,316	306,030
				3,902,217	4,310,702

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

Principal Amount,

Shares, Units or

Acquisition

Corporate Restricted Securities: (A) (Continued)

Ownership Percentage

Date

Cost

Fair Value

Dunn Paper

A provider of specialty paper for niche product applications.

11.25% Senior Subordinated Note due 06/30/2020

2,969,697

12/30/14

2,914,323

3,001,373

Preferred Stock (B)

530 shs.

12/30/14

530,303

718,377

3,444,626

3,719,750

E S P Holdco, Inc.

A manufacturer of power protection technology for commercial office equipment, primarily supplying the office equipment dealer network.

Common Stock (B)

660 shs.

01/08/08

329,990

659,726

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.
Common Stock (B)	150 shs.	02/01/10	150,000	277,331
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B)	358 shs.	02/01/10	321,300	661,249
			471,300	938,580

ECG Consulting Group
A healthcare management consulting company who provides strategic, financial, operational, and technology related consulting services to healthcare providers.
11.75% Senior Subordinated Note due 11/21/2020	$	2,636,994	11/21/14	2,581,527	2,652,703
Limited Liability Company Unit (B)	467 uts.		11/19/14	145,833	145,405
				2,727,360	2,798,108

EPM Holding Company
A provider of non-discretionary regulatory driven engineering services that support mission critical safety and operational aspects of nuclear power plants.
14.5% Senior Subordinated Note due 07/26/2019	$	580,629	07/26/13	571,767	592,242
Common Stock (B)	3,069 shs.		07/26/13	306,947	788,846
				878,714	1,381,088

ERG Holding Company LLC
A provider of inpatient and outpatient clinical trial services to pharmaceutical companies and contract research organizations.
13.5% Senior Subordinated Note due 10/04/2019	$	1,923,110	04/04/14	1,891,565	1,914,518
Common Stock (B)	63 shs.		04/04/14	157,314	157,325
				2,048,879	2,071,843

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

Principal Amount,

Shares, Units or

Acquisition

Corporate Restricted Securities: (A) (Continued)

Ownership Percentage

Date

Cost

Fair Value

F F C Holding Corporation

A leading U.S. manufacturer of private label frozen novelty and ice cream products.

Limited Liability Company Unit Preferred (B)

512 uts.

09/27/10

175,035

209,867

Limited Liability Company Unit Common (B)

512 uts.

09/27/10

51,220

362,327

226,255

572,194

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.
Limited Liability Company Unit Preferred (B)	483,355 uts.		04/15/14	—	483,355
Limited Liability Company Unit Class B-1 (B)	394,737 uts.		12/15/10	394,737	749,226
Limited Liability Company Unit Class B-2 (B)	49,488 uts.		12/15/10	49,488	93,930
Limited Liability Company Unit Class B-3 (B)	39,130 uts.		08/30/12	90,000	83,936
Limited Liability Company Unit Class C (B)	9,449 uts.		12/20/10	96,056	151,797
				630,281	1,562,244

FMH Holdings Corporation
A designer and manufacturer of highly engineered components for the aerospace, defense and space industries.
11.5% Senior Subordinated Note due 11/01/2020	$	2,929,728	05/01/15	2,872,085	2,942,490
Common Stock (B)	300 shs.		05/01/15	300,485	285,466
				3,172,570	3,227,956

G C Holdings

A leading manufacturer of gaming tickets, industrial recording charts, security-enabled point-of sale receipts, and medical charts and supplies.

Warrant, exercisable until 2018, to purchase

common stock at $.01 per share (B)

594 shs.

10/19/10

140,875

383,812

GD Dental Services LLC
A provider of convenient “onestop” general, specialty, and cosmetic dental services with 21 offices located throughout South and Central Florida.
Limited Liability Company Unit Common (B)	1,840 uts.		10/05/12	1,840	110,312
Limited Liability Company Unit Preferred (B)	182 uts.		10/05/12	182,209	214,794
				184,049	325,106

GenNx Novel Holding, Inc.
A manufacturer and distributor of nutraceutical ingredients.
13% Senior Subordinated Note due 03/27/2020	$	3,217,930	03/27/14	3,163,904	3,141,429
Common Stock (B)	31,500 shs.		03/27/14	315,000	362,976
				3,478,904	3,504,405

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

	Principal Amount,
	Shares, Units or		Acquisition
Corporate Restricted Securities: (A) (Continued)	Ownership Percentage		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 03/27/2019	$	2,841,724	03/27/13	$	2,802,694	$	2,841,724
Common Stock (B)	2,835 shs.		03/27/13		283,465		391,231
					3,086,159		3,232,955

GlynnDevins Acquisition Corporation
A marketing communications agency that service senior living facilities.
13% Senior Subordinated Note due 12/19/2020	$	1,600,610	6/19/15		1,568,786		1,595,024
Preferred Stock Series A (B)	695 shs.		6/19/15		143,414		143,415
Common Stock (B)	695 shs.		6/19/15		5,976		5,677
					1,718,176		1,744,116

Golden County Foods Holding, Inc.
A manufacturer of frozen appetizers and snacks.
14% Senior Subordinated Note due 11/13/2019 (D)	$	73,550	11/13/13		436,682		—
Preferred Stock (B)	287,658 shs.		11/13/13		146,658		—
Preferred Stock Series F (B)	294,200 shs.		11/13/13		1,746,726		—
					2,330,066		—

Grakon Parent
The leading designer and manufacturer of highly-engineered and customized LED and incandescent lighting systems for transportation-based markets.
12% Senior Subordinated Note due 04/30/2021	$	3,145,270	10/31/14	3,086,792	3,157,047
Common Stock (B)	355 shs.		10/31/14	354,730	396,772
				3,441,522	3,553,819

GTI Holding Company
A designer, developer, and marketer of precision specialty hand tools and handheld test instruments.
12% Senior Subordinated Note due 02/05/2020	$	1,455,729	02/05/14	1,370,101	1,432,549
Common Stock (B)	1,693 shs.		02/05/14	169,271	168,015
Warrant, exercisable until 2024, to purchase
common stock at $.01 per share (B)	795 shs.		02/05/14	73,633	78,897
				1,613,005	1,679,461

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 06/19/2021	$	2,916,667	12/19/14	2,861,545	2,859,550
Limited Liability Company Unit Preferred (B)	583 uts.		12/19/14	583,336	562,219
Limited Liability Company Unit Common (B)	5,833 uts.		12/19/14	—	—
				3,444,881	3,421,769

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

	Principal Amount,
	Shares, Units or		Acquisition
Corporate Restricted Securities: (A) (Continued)	Ownership Percentage		Date	Cost		Fair Value

Hartland Controls Holding Corporation
A manufacturer and distributor of electronic and electromechanical components.
14% Senior Subordinated Note due 08/14/2019	$	2,211,488	02/14/14	$	2,175,304	$	2,255,718
12% Senior Subordinated Note due 08/14/2019	$	875,000	06/22/15		866,291		875,283
Preferred Stock Series A (B)	5,169 shs.		02/14/14		245,217		251,660
Common Stock (B)	1,666 shs.		02/14/14		1,667		311,007
					3,288,479		3,693,668

Healthcare Direct Holding Company
A direct-to-consumer marketer of discount dental plans.
Common Stock (B)	1,552 shs.		03/09/12		155,172		230,931

HHI Group, LLC
A developer, marketer, and distributor of hobby-grade radio control products.
14% Senior Subordinated Note due 01/17/2020	$	3,136,655	01/17/14		3,086,094		3,199,388
Limited Liability Company Unit (B)	203 uts.		01/17/14		203,125		190,825
					3,289,219		3,390,213

Hi-Rel Group LLC
A manufacturer and distributor of precision metal piece parts for the microelectronic packaging industry, serving the aerospace/defense, telecommunications, and medical end markets.
12% Senior Subordinated Note due 03/15/2018	$	1,687,500	04/15/13	1,616,257	1,666,454
Limited Liability Company Unit (B)	563 uts.		04/15/13	562,500	487,199
Warrant, exercisable until 2020, to purchase
common stock at $.01 per share (B)	89,224 shs.		04/15/13	77,625	73,413
				2,256,382	2,227,066

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 08/19/2016	$	2,075,581	08/19/08	2,039,280	2,061,465
Common Stock (B)	474 shs.		08/19/08	474,419	121,584
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B)	123 shs.		08/19/08	113,773	31,425
				2,627,472	2,214,474

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

Principal Amount,

Shares, Units or

Acquisition

Corporate Restricted Securities: (A) (Continued)

Ownership Percentage

Date

Cost

Fair Value

HVAC Holdings, Inc.

A provider of integrated energy efficiency services and maintenance programs for HVAC systems.

12.5% Senior Subordinated Note due 09/27/2019

2,864,157

09/27/12

2,824,539

2,847,448

Limited Liability Company Unit Class A Common (B)

2,185 uts.

09/27/12

2,185

74,183

Limited Liability Company Unit Class A Preferred (B)

2,705 uts.

09/27/12

270,542

349,852

3,097,266

3,271,483

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

565,908

Impact Confections
An independent manufacturer and marketer of confectionery products including Warheads® brand sour candies, Melster® brand classic candies, and co-manufactured/private label classic candies.
13% Senior Subordinated Note due 11/04/2020	$	2,172,211	11/10/14	2,132,211	2,163,928
Common Stock (B)	4,667 shs.		11/10/14	466,667	354,684
				2,598,878	2,518,612

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	355,196

J A C Holding Enterprises, Inc.
A supplier of luggage racks and accessories to the original equipment manufacturers.
Preferred Stock A (B)	495 shs.		12/20/10	495,000	522,215
Preferred Stock B (B)	0.17 shs.		12/20/10	—	176
Common Stock	100 shs.		12/20/10	5,000	—
Warrant, exercisable until 2020, to purchase
common stock at $.01 per share	36 shs.		12/20/10	316,930	149,310
				816,930	671,701

Janus Group Holdings LLC
A manufacturer of roll-up doors and hallway systems that are primarily used in self-storage facilities.
13.5% Senior Subordinated Note due 06/11/2019	$	2,684,783	12/11/13	2,642,392	2,738,479
Limited Liability Company Unit Class A (B)	565 uts.		12/11/13	278,515	984,410
				2,920,907	3,722,889

JMH Investors LLC
A developer and manufacturer of custom formulations for a wide variety of foods.
14.25% Senior Subordinated Note due 12/05/2019	$	2,625,505	12/05/12	2,588,657	2,362,494
Limited Liability Company Unit (B)	2,493,253 uts.		12/05/12	557,301	24,933
				3,145,958	2,387,427

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

	Principal Amount,
	Shares, Units or		Acquisition
Corporate Restricted Securities: (A) (Continued)	Ownership Percentage		Date	Cost		Fair Value

K & N Parent, Inc.
A manufacturer and supplier of automotive aftermarket performance air filters and intake systems.
Preferred Stock Series A	305 shs.		12/23/11	$	—	$	—
Preferred Stock Series B	86 shs.		12/23/11		—		—
Common Stock	489 shs.		*		19,565		294,874
* 12/23/11 and 06/30/14.					19,565		294,874

K N B Holdings Corporation
A designer, manufacturer and marketer of products for the custom framing market.
Common Stock (B)	134,210 shs.		05/24/06		134,210		140,079
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B)	82,357 shs.		05/25/06		71,534		85,959
					205,744		226,038

K P I Holdings, Inc.
The largest player in the U.S. non-automotive, non-ferrous die casting segment.
Limited Liability Company Unit Class C Preferred (B)	75 uts.		06/30/15		—		80,312
Common Stock (B)	667 shs.		07/15/08		539,502		714,351
					539,502		794,663

Mail Communications Group, Inc.
A provider of mail processing and handling services, lettershop services, and commercial printing services.
Limited Liability Company Unit	24,109 uts.		*		314,464		633,365
Warrant, exercisable until 2017, to purchase
common stock at $.01 per share (B)	3,375 shs.		05/04/07		43,031		88,665
* 05/04/07 and 01/02/08.					357,495		722,030

Manhattan Beachwear Holding Company
A designer and distributor of women’s swimwear.
12.5% Senior Subordinated Note due 01/15/2018	$	1,259,914	01/15/10		1,187,237		1,258,828
15% Senior Subordinated Note due 01/15/2018	$	345,759	10/05/10		342,759		328,144
Common Stock (B)	106 shs.		10/05/10		106,200		130,990
Common Stock Class B (B)	353 shs.		01/15/10		352,941		435,326
Warrant, exercisable until 2019, to purchase
common stock at $.01 per share (B)	312 shs.		10/05/10		283,738		385,261
					2,272,875		2,538,549

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

	Principal Amount,
	Shares, Units or		Acquisition
Corporate Restricted Securities: (A) (Continued)	Ownership Percentage		Date	Cost		Fair Value

Master Cutlery LLC
A designer and marketer of a wide assortment of knives and swords.
13% Senior Subordinated Note due 04/17/2020	$	1,771,729	04/17/15	$	1,750,107	$	1,756,181
Limited Liability Company Unit (B)	9 uts.		04/17/15		1,356,658		1,373,597
					3,106,765		3,129,778

MedSystems Holdings LLC
A manufacturer of enteral feeding products, such as feeding tubes and other products related to assisted feeding.
Preferred Unit (B)	126 uts.		08/29/08		87,177		168,033
Common Unit Class A (B)	1,268 uts.		08/29/08		1,268		258,725
Common Unit Class B (B)	497 uts.		08/29/08		120,064		101,496
					208,509		528,254

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 10/30/2019	$	1,362,886	09/22/11		1,347,629		1,305,458
Limited Liability Company Unit Series A	684 uts.		05/07/14		44,281		7,751
Limited Liability Company Unit Series B (B)	467,833 uts.		09/22/11		467,833		107,037
					1,859,743		1,420,246

MES Partners, Inc.
An industrial service business offering an array of cleaning and environmental services to the Gulf Coast region of the U.S.
12% Senior Subordinated Note due 09/30/2021	$	2,211,962	09/30/14		2,171,188		2,223,556
Common Stock Class B (B)	445,455 shs.		09/30/14		445,455		620,105
					2,616,643		2,843,661

MNX Holding Company
An international third party logistics company providing customized logistics services to customers across the globe.
14% Senior Subordinated Note due 11/02/2019	$	3,050,765	11/02/12		3,008,582		2,992,677
Common Stock (B)	107 shs.		11/02/12		107,143		57,954
					3,115,725		3,050,631

Money Mailer
A leading provider of hyperlocal shared direct mail advertising as well as interactive and online advertising solutions through its nationwide production and distribution network.
Preferred Stock	2,704,364 shs.		12/10/14		2,663,799		2,704,364

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

	Principal Amount,
	Shares, Units or		Acquisition
Corporate Restricted Securities: (A) (Continued)	Ownership Percentage		Date	Cost		Fair Value

Motion Controls Holdings
A manufacturer of high performance mechanical motion control and linkage products.
14.25% Senior Subordinated Note due 08/15/2020	$	2,948,715	11/30/10	$	2,920,701	$	2,948,715
Limited Liability Company Unit Class B-1 (B)	225,000 uts.		11/30/10		—		238,950
Limited Liability Company Unit Class B-2 (B)	20,403 uts.		11/30/10		—		21,668
					2,920,701		3,209,333

NABCO, Inc.
A producer of explosive containment vessels in the United States.
Common Stock (B)	809 shs.		12/20/12		578,174		382,987

NetShape Technologies, Inc.
A manufacturer of powder metal and metal injection molded precision components used in industrial, consumer, and other applications.
12% Senior Subordinated Note due 06/10/2020	$	1,530,000	02/02/07		1,528,662		1,503,734
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		—
Limited Liability Company Unit Class D-2 of
Saw Mill PCG Partners LLC (B)	128 uts.		04/29/11		65,256		251,006
Limited Liability Company Unit Class D-3 of
Saw Mill PCG Partners LLC (B)	196 uts.		12/10/14		196,263		207,251
* 12/18/08 and 09/30/09.					3,146,608		1,961,991

Northwest Mailing Services, Inc.
A producer of promotional materials for companies that use direct mail as part of their customer retention and loyalty programs.
Limited Partnership Interest (B)	3,287 uts.		*		328,679		261,989
Warrant, exercisable until 2019, to purchase
common stock at $.01 per share (B)	4,920 shs.		*		492,016		392,184
* 07/09/09 and 08/09/10.					820,695		654,173

O E C Holding Corporation
A provider of elevator maintenance, repair and modernization services.
13% Senior Subordinated Note due 08/23/2018	$	1,333,333	06/04/10		1,277,535		1,333,333
Preferred Stock Series A (B)	1,661 shs.		06/04/10		166,062		257,866
Preferred Stock Series B (B)	934 shs.		06/04/10		93,376		—
Common Stock (B)	1,032 shs.		06/04/10		1,032		—
					1,538,005		1,591,199

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

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	$	3,661,657
Preferred Stock Series B (B)	13,334 shs.		05/22/09		547,872		215,492
Common Stock (B)	40,540 shs.		05/22/09		1,877,208		—
					2,536,588		3,877,149

Petroplex Inv Holdings LLC
A leading provider of acidizing services to E&P customers in the Permian Basin.
Limited Liability Company Unit	375,000 uts.		11/29/12		375,000		466,032

Polytex Holdings LLC
A manufacturer of water based inks and related products serving primarily the wall covering market.
13% Senior Subordinated Note due 01/31/2020	$	2,122,741	07/31/14		2,085,760		2,093,978
Limited Liability Company Unit	300,485 uts.		07/31/14		300,485		305,928
					2,386,245		2,399,906

Power Stop Holdings LLC
A supplier of performance upgrade aftermarket brake products.
11% Senior Subordinated Note due 05/29/2022	$	3,266,800	5/29/15		3,202,291		3,293,809
Limited Liability Company Unit Common (B)	2,332 uts.		5/29/15		—		—
Limited Liability Company Unit Preferred (B)	2,332 uts.		5/29/15		233,200		233,200
					3,435,491		3,527,009

PPC Event Services
A special event equipment rental business.
14% Senior Subordinated Note due 05/20/2020	$	2,297,807	11/20/14		2,254,782		2,314,767
Limited Liability Company Unit (B)	7,000 uts.		11/20/14		350,000		334,695
					2,604,782		2,649,462

R A J Manufacturing Holdings LLC
A designer and manufacturer of women’s swimwear sold under a variety of licensed brand names.
8% Senior Subordinated Note due 01/02/2017	$	94,270	01/02/14		410,667		94,429
Limited Liability Company Unit (B)	2,828 uts.		12/15/06		282,810		—
Limited Liability Company Unit Class B Common (B)	10 uts.		01/02/14		414,787		—
Limited Liability Company Unit Class B-1
Preferred (B)	18 uts.		01/02/14		707,024		707,022
Warrant, exercisable until 2017, to purchase
common stock at $.01 per share (B)	3 shs.		12/15/06		131,483		—
					1,946,771		801,451

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value

Randy’s Worldwide Automotive
A designer and distributor of automotive aftermarket parts.
11.5% Senior Subordinated Note due 05/12/2021	$	2,304,719	5/12/15	$	2,259,655	$	2,283,416
Common Stock (B)	240 shs.		5/12/15		240,388		228,371
					2,500,043		2,511,787

REVSpring, Inc.
A provider of accounts receivable management and revenue cycle management services to customers in the healthcare, financial and utility industries.
Limited Liability Company Unit Class A (B)	40,643 uts.		*		406,432		650,158
* 10/21/11 and 08/03/12.

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.
Preferred Stock (B)	6,294 shs.		03/30/12		251,758		330,821
Common Stock (B)	2,949 shs.		03/30/12		29,492		258,957
					281,250		589,778

Signature Systems Holdings Company
A seller and installer of a variety of modular surfaces, industrial matting and related products used for ground protection.
Common Stock (B)	181 shs.		03/15/13		181,221		610,859
Warrant, exercisable until 2023, to purchase
common stock at $.01 per share (B)	74 shs.		03/15/13		67,958		249,541
					249,179		860,400

Smart Source Holdings LLC
A short-term computer rental company.
Limited Liability Company Unit (B)	619 uts.		*		493,496		560,606
Warrant, exercisable until 2015, to purchase
common stock at $.01 per share (B)	157 shs.		*		127,437		142,020
* 08/31/07 and 03/06/08.					620,933		702,626

SMB Machinery Holdings, Inc.
A reseller of used, rebuilt and refurbished packaging and processing equipment, primarily serving the bottling and food manufacturing industries.
14% Senior Subordinated Note due 10/18/2019	$	1,507,159	10/18/13		1,483,955		1,130,369
Common Stock (B)	1,681 shs.		10/18/13		168,100	—
					1,652,055		1,130,369

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value

Spartan Foods Holding Company
A manufacturer of branded pizza crusts and pancakes.
12.25% Senior Subordinated Note due 03/01/2019	$	1,143,342	12/15/09	$	1,055,150	$	1,143,342
Warrant, exercisable until 2020, to purchase
common stock at $.01 per share (B)	257 shs.		12/15/09		227,109		242,744
					1,282,259		1,386,086
Strahman Holdings Inc
A manufacturer of industrial valves and wash down equipment for a variety of industries, including chemical, petrochemical, polymer, pharmaceutical, food processing, beverage and mining.
14% Senior Subordinated Note due 06/13/2019	$	2,119,565	12/13/13		2,083,288		2,138,075
Preferred Stock A (B)	317,935 shs.		12/13/13		317,935		340,041
					2,401,223		2,478,116
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 uts.		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 12/14/2017	$	3,163,338	12/14/10		3,082,825		3,163,338
14% Senior Subordinated PIK Note due 12/14/2017	$	319,346	08/17/12		313,449		317,063
Common Stock (B)	115 shs.		12/14/10		114,504		125,716
Warrant, exercisable until 2020, to purchase
common stock at $.01 per share (B)	112 shs.		12/14/10		111,747		122,697
					3,622,525		3,728,814
Synteract Holdings Corporation
A provider of outsourced clinical trial management services to pharmaceutical and biotechnology companies.
16% Senior Subordinated Note due 02/26/2019	$	4,368,755	09/02/08		4,275,400		4,368,755
Preferred Stock Series D (B)	485 shs.		02/27/13		48,503		—
Redeemable Preferred Stock Series A (B)	1,280 shs.		10/03/08		12,523		—
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B)	12,803 shs.		09/02/08		112,693		—
					4,449,119		4,368,755

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value

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.
3% Senior Subordinated Note due 12/31/2018 (D)	$	2,006,491	12/05/13	$	—	$	1,906,167
15% Senior Subordinated Note due 12/05/2020 (D)	$	88,396	12/05/13		414,051		35,358
Warrant, exercisable until 2023, to purchase
common stock at $.01 per share (B)	53,038 shs.		12/05/13		—		—
					414,051		1,941,525

Transpac Holding Company
A designer, importer and wholesaler of home décor and seasonal gift products.
8% Senior Subordinated Note due 10/31/2015 (D)	$	1,773,006	10/31/07		1,717,521		—
Common Stock (B)	209 shs.		10/31/07		208,589		—
Warrant, exercisable until 2015, to purchase
common stock at $.01 per share (B)	94 shs.		10/31/07		87,607		—
					2,013,717		—

Tranzonic Holdings LLC
A producer of commercial and industrial supplies, such as safety products, janitorial supplies, work apparel, washroom and restroom supplies and sanitary care products.
14% Senior Subordinated Note due 07/05/2019	$	3,073,966	07/05/13		3,029,222		3,104,706
Limited Liability Company Unit Class A (B)	295,455 uts.		07/05/13		295,455		344,535
					3,324,677		3,449,241

Tristar Global Energy Solutions, Inc.
A hydrocarbon and decontamination services provider serving refineries worldwide.
12.5% Senior Subordinated Note due 07/31/2020	$	2,268,403	01/23/15		2,224,531		2,166,611

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.
Preferred Stock Series B (B)	241 shs.		10/20/08		241,172		912,871
Common Stock (B)	742 shs.		*		800,860		215,300
Warrant, exercisable until 2017, to purchase
common stock at $.02 per share (B)	153 shs.		*		159,894		44,467
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B)	1,054 shs.		10/20/08		—		305,781
* 07/19/05 and 12/22/05.					1,201,926		1,478,419

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

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		462,566
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		462,566

VP Holding Company
A provider of school transportation services for special-needs and homeless children in Massachusetts.
Common Stock (B)	7,368 shs.		03/31/14		736,842		949,780

Wellborn Forest Holding Company
A manufacturer of semi-custom kitchen and bath cabinetry.
8% Senior Subordinated Note due 09/30/2017 (D)	$	3,175,092	11/30/06		1,638,669		—
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		—

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		335,036
Common Stock (B)	1,058 shs.		06/08/10		1,058		227,320
					211,982		562,356

Whitcraft Holdings, Inc.
A leading independent manufacturer of precision formed, machined, and fabricated flight-critical aerospace components.
Common Stock (B)	616 shs.		12/16/10		616,438		390,167
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B)	166 shs.		12/16/10		148,003		104,840
					764,441		495,007

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 06/12/2020	$	2,793,627	11/03/11		2,762,804		2,821,563
Common Stock	4,500 shs.		11/03/11		450,000		563,797
					3,212,804		3,385,360

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value

York Wall Holding Company
A designer, manufacturer and marketer of wall covering products for both residential and commercial wall coverings.
12.5% Senior Subordinated Note due 03/04/2021	$	3,142,830	03/04/15	$	3,082,586	$	3,075,473
Common Stock (B)		3,723 shs.	03/04/15		372,300		363,913
					3,454,886		3,439,386



Total Private Placement Investments (E)				$	192,502,808	$	200,189,002

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

Corporate Restricted Securities: (A) (Continued)	Interest Rate			Due Date	Principal Amount		Cost		Market Value

Rule 144A Securities - 18.76%:

Bonds - 18.74%
Alliant Techsystems Inc.		5.250	%	10/01/21	$	1,000,000	$	1,000,000	$	1,020,000
Altice S.A.		7.750		05/15/22		1,000,000		1,000,000		967,500
Amsted Industries		5.375		09/15/24		520,000		520,000		516,100
Ashtead Group plc		6.500		07/15/22		385,000		404,707		408,100
ATACN		6.500		06/15/23		92,000		92,000		93,955
Audatex North America, Inc.		6.125		11/01/23		437,000		455,588		449,018
Belden Inc.		5.250		07/15/24		410,000		410,000		397,700
Beverage Packaging Holdings		6.000		06/15/17		730,000		730,000		730,000
Brunswick Corporation		4.625		05/15/21		400,000		402,881		398,000
CITGO Petroleum Corporation		6.250		08/15/22		925,000		925,000		908,813
Commscope Holdings Inc.		6.625		06/01/20		500,000		500,950		518,750
Consolidated Energy Finance S.A.		6.750		10/15/19		947,000		937,951		961,204
Cornerstone Chemical Company		9.375		03/15/18		750,000		762,270		787,500
Coveris Holdings S.A.		7.875		11/01/19		1,000,000		1,000,000		995,000
CTP Transportation Products, LLC		8.250		12/15/19		635,000		635,000		657,225
Dean Foods		6.500		03/15/23		663,000		663,000		676,260
Endo Finance LLC		5.375		01/31/23		1,000,000		981,686		987,500
Family Tree Escrow, LLC		5.750		03/01/23		315,000		315,000		329,174
Forest Laboratories, Inc.		4.875		02/15/21		1,000,000		1,000,000		1,084,216
Forest Laboratories, Inc.		5.000		12/15/21		775,000		775,000		840,977
Harron Communications, L.P.		9.125		04/01/20		500,000		541,090		540,625
HD Supply, Inc.		5.250		12/15/21		265,000		265,000		268,644
Hilcorp Energy Company		5.000		12/01/24		500,000		500,000		468,850
H.J. Heinz Company		4.875		02/15/25		1,000,000		1,000,000		1,088,750
Hub International Ltd.		7.875		10/01/21		1,000,000		1,000,000		1,020,000
Huntington Ingalls Industries		5.000		12/15/21		1,000,000		1,000,000		1,017,500
INEOS Group Holdings PLC		5.875		02/01/19		485,000		485,000		487,425
International Automotive Component		9.125		06/01/18		1,000,000		969,054		1,020,000
International Wire Group		8.500		10/15/17		500,000		520,956		517,500
J.B. Poindexter Co., Inc.		9.000		04/01/22		1,000,000		1,044,249		1,070,000
JBS USA Holdings, Inc.		7.750		10/28/20		750,000		783,826		815,625
Jupiter Resources Inc.		8.500		10/01/22		1,000,000		950,363		837,500
Jurassic Holdings III Inc		6.875		02/15/21		1,000,000		1,008,149		780,000
KeHE Distributors, LLC		7.625		08/15/21		1,000,000		1,058,166		1,050,000
Kenan Advantage Group, Inc.		8.375		12/15/18		1,000,000		1,028,799		1,041,250
Kindred Escrow Corp. II		8.750		01/15/23		1,000,000		1,000,000		1,086,250
LBC Tank Terminals Holding Netherlands B.V.		6.875		05/15/23		1,315,000		1,351,437		1,357,738
Mallinckrodt PLC		5.750		08/01/22		1,000,000		1,000,000		1,022,500
Micron Technology, Inc.		5.250		08/01/23		1,000,000		1,000,000		958,750

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

				Shares or
	Interest		Due	Principal				Market
Corporate Restricted Securities: (A) (Continued)	Rate		Date	Amount		Cost		Value

Milacron Financial	7.750	%	02/15/21	$	500,000	$	500,000	$	515,000
Moog Inc.	5.250		12/01/22		511,000		511,000		519,942
Murray Energy Corporation	11.250		04/15/21		1,000,000		969,337		840,000
Mustang Merger Corporation	8.500		08/15/21		1,000,000		997,878		1,015,000
Netflix, Inc.	5.500		02/15/22		605,000		605,000		624,663
NXP BV/NXP Funding LLC	3.750		06/01/18		1,500,000		1,500,000		1,511,250
Onex Corporation	8.500		10/01/22		352,000		352,000		310,200
Paragon Offshore plc.	6.750		07/15/22		1,000,000		330,361		330,000
Pinnacle Operating Corporation	9.000		11/15/20		1,000,000		1,038,492		992,500
Prestige Brands Holdings, Inc.	5.375		12/15/21		1,350,000		1,350,000		1,350,000
Rite Aid Corporation	6.125		04/01/23		744,000		744,000		766,320
Roofing Supply	10.000		06/01/20		754,000		833,112		770,964
Sabre GLBL Inc.	5.375		04/15/23		347,000		347,000		341,795
Safway Group Holding LLC/Finance Corporation	7.000		05/15/18		500,000		500,000		511,145
Sirius XM Radio Inc.	5.875		10/01/20		750,000		750,000		768,750
Sirius XM Radio Inc.	5.375		04/15/25		250,000		250,000		241,250
Surgical Care Affiliates, Inc.	6.000		04/01/23		918,000		918,000		918,000
Teine Energy Ltd.	6.875		09/30/22		900,000		893,343		868,500
Tenet Healthcare Corporation	6.750		06/15/23		725,000		721,389		739,500
Topaz Marine S.A.	8.625		11/01/18		1,000,000		1,000,000		977,500
Unitymedia KabelBW GmbH	6.125		01/15/25		1,000,000		1,000,000		1,045,000
Univision Communications, Inc.	5.125		05/15/23		325,000		325,000		315,250
Univision Communications, Inc.	5.125		02/15/25		860,000		871,627		830,072
UPCB Finance IV Limited	5.375		01/15/25		425,000		425,000		405,663
Valeant Pharmaceuticals International	7.000		10/01/20		880,000		881,234		915,200
Virgin Media Secured Finance PLC	5.250		01/15/26		1,000,000		1,009,656		966,250
VRX Escrow Corp.	6.125		04/15/25		782,000		782,000		804,483
Watco Companies, L.L.C.	6.375		04/01/23		1,000,000		1,000,000		1,012,500
Welltec A/S	8.000		02/01/19		750,000		740,887		716,250
West Corporation	5.375		07/15/22		1,000,000		981,884		935,000
Woodside Homes Company, LLC	6.750		12/15/21		1,000,000		1,002,170		945,000
XPO Logistics, Inc.	7.875		09/01/19		933,000		957,718		997,004
Total Bonds							55,105,210		54,975,850

Preferred Stock - 0.02%
Ally Financial, Inc.					72		22,662		72,754
TherOX, Inc. (B)					103		—		—
Total Preferred Stock							22,662		72,754
Common Stock - 0.00%
Touchstone Health Partnership (B)					1,168		—		—
Total Common Stock							—		—
Total Rule 144A Securities							55,127,872		55,048,604

Total Corporate Restricted Securities						$	247,630,680	$	255,237,606

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

	Interest Rate			Due Date	Principal Amount		Cost		Market Value
Corporate Public Securities - 16.68%: (A)

Bank Loans - 0.72%
American Energy - Marcellus, LLC		8.500	%	07/09/21	$	209,882	$	207,133	$	112,637
Aquilex Holdings LLC		5.000		12/31/20		293,452		292,870		292,719
Caelus Energy Alaska, LLC		8.750		04/15/20		1,000,000		991,647		810,000
Synarc-BioCore Holdings, LLC		9.250		03/04/22		1,000,000		991,596		910,000
Total Bank Loans								2,483,246		2,125,356

Bonds - 15.57%
Accuride Corp		9.500	%	08/01/18	$	1,500,000	$	1,524,491	$	1,533,750
ADT Corporation		6.250		10/15/21		1,000,000		1,031,363		1,050,000
Ally Financial, Inc.		5.500		02/15/17		1,500,000		1,512,678		1,563,750
Alta Mesa Financial Services		9.625		10/15/18		767,000		762,490		605,930
Anixter, Inc.		5.125		10/01/21		421,000		421,000		428,368
Antero Resources Corporation		5.375		11/01/21		800,000		800,000		768,000
Bonanza Creek Energy, Inc.		5.750		02/01/23		1,000,000		1,000,000		897,500
California Resources Corporation		6.000		11/15/24		970,000		970,000		834,200
Calpine Corporation		5.750		01/15/25		700,000		700,000		680,750
Calumet Specialty Products Partners L.P.		7.625		01/15/22		1,000,000		1,003,280		1,020,000
Chrysler Group, LLC		8.250		06/15/21		415,000		451,770		452,350
Cimarex Energy Co.		5.875		05/01/22		1,000,000		1,064,302		1,070,000
CIT Group Inc.		3.875		02/19/19		1,000,000		1,000,000		992,500
Clearwater Paper Corporation		4.500		02/01/23		750,000		743,922		710,625
Commercial Metals Company		4.875		05/15/23		1,500,000		1,502,604		1,410,000
Commercial Vehicle Group Inc.		7.875		04/15/19		989,000		1,010,186		1,013,725
CVR Refining LLC		6.500		11/01/22		650,000		630,705		650,000
D.R. Horton, Inc.		4.000		02/15/20		1,000,000		1,000,000		994,700
DuPont Fabros Technology, Inc.		5.625		06/15/23		600,000		595,259		591,000
Ferrellgas Partners, L.P		6.750		01/15/22		465,000		465,000		466,163
First Data Corporation		11.750		08/15/21		650,000		650,000		731,250
Forum Energy Technologies		6.250		10/01/21		325,000		325,000		321,750
HCA Holdings, Inc.		3.750		03/15/19		1,000,000		1,000,000		1,007,500
HealthSouth Corporation		5.750		11/01/24		393,000		400,597		401,351
Hilton Worldwide Holdings, LLC		5.625		10/15/21		1,000,000		1,000,000		1,038,700
Hornbeck Offshore Services, Inc.		5.000		03/01/21		500,000		500,000		430,000
Huntington Ingalls Industries		7.125		03/15/21		750,000		771,262		795,000
Icahn Enterprises L.P.		4.875		03/15/19		970,000		970,000		977,275
Icahn Enterprises L.P.		6.000		08/01/20		1,150,000		1,168,570		1,187,375
Lamar Media Corp.		5.375		01/15/24		320,000		320,000		323,600
Lear Corporation		4.750		01/15/23		750,000		737,794		738,750
Lennar Corporation		4.500		11/15/19		250,000		250,553		253,125
Lennar Corporation		4.750		11/15/22		750,000		740,536		736,875
Magnum Hunter Resources, Corp.		9.750		05/15/20		1,500,000		1,556,819		1,342,500

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

Corporate Public Securities: (A) (Continued)	Interest Rate			Due Date	Shares or Principal Amount		Cost		Market Value

MarkWest Energy Partners, L.P.		4.875	%	12/01/24	$	1,000,000	$	1,000,000	$	977,500
Memorial Production Partners LP		6.875		08/01/22		1,000,000		985,599		904,500
Meritor, Inc.		6.750		06/15/21		1,000,000		1,000,000		1,022,500
Meritor, Inc.		7.875		03/01/26		669,000		663,403		1,057,020
Nielsen Finance LLC		4.500		10/01/20		1,000,000		1,000,000		995,000
NRG Energy, Inc.		6.250		07/15/22		1,000,000		1,000,000		1,015,000
Oasis Petroleum Inc.		6.875		03/15/22		1,000,000		1,000,000		1,015,000
Omnova Solutions, Inc.		7.875		11/01/18		1,200,000		1,213,906		1,200,000
Perry Ellis International, Inc.		7.875		04/01/19		250,000		248,428		259,375
Ply Gem Industries, Inc.		6.500		02/01/22		1,000,000		937,362		967,500
Precision Drilling Corporation		6.625		11/15/20		750,000		766,410		735,000
Regency Energy Partners LP		5.875		03/01/22		835,000		823,100		888,869
Rosetta Resources Inc.		5.875		06/01/22		1,000,000		1,000,000		1,067,500
Select Medical Corporation		6.375		06/01/21		650,000		658,273		656,500
Sprint Corporation		7.125		06/15/24		315,000		315,000		292,194
Stone Energy Corporation		7.500		11/15/22		1,000,000		1,025,924		870,000
Suburban Propane Partners, L.P.		5.750		03/01/25		1,000,000		1,000,000		997,500
William Lyon Homes		7.000		08/15/22		1,000,000		1,000,000		1,035,000
WPX Energy, Inc.		5.250		09/15/24		925,000		925,000		852,156
Xerium Technologies, Inc.		8.875		06/15/18		831,000		858,967		860,085
Total Bonds								46,001,553		45,686,561

Common Stock - 0.39%
Chase Packaging Corporation						9,541		—		658
Nortek, Inc.						175		1		14,548
Supreme Industries, Inc. (B)						131,371		267,319		1,125,849
Total Common Stock								267,320		1,141,055

Total Corporate Public Securities							$	48,752,119	$	48,952,972

Total Investments		103.67%					$	296,382,799	$	304,190,578
Other Assets		7.84								23,009,596
Liabilities		(11.51)								(33,789,600)
Total Net Assets		100.00%							$	293,410,574

(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)	Security valued at fair value using methods determined in good faith by or under the direction of the Board of Trustees.

(D)	Defaulted security; interest not accrued.

(E)	Illiquid securities. As of June 30, 2015, the value of these securities amounted to $200,189,002, or 68.23% of net assets.

^	Effective yield at purchase

PIK	- Payment-in-kind

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

Industry Classification:	Fair Value/ Market Value			Fair Value/ Market Value

AEROSPACE & DEFENSE - 3.77%	$	1,020,000	Harron Communications, L.P.	$	540,625
Alliant Techsystems Inc.		1,020,000	Unitymedia KabelBW GmbH		1,045,000
A S C Group, Inc.		3,098,809	UPCB Finance IV Limited		405,663
FMH Holdings Corporation		3,227,956	Virgin Media Secured Finance PLC		966,250
Huntington Ingalls Industries		1,812,500			3,925,038
Merex Holding Corporation		1,420,246
Whitcraft Holdings, Inc.		495,007	CHEMICALS - 4.09%		495,007
		11,074,518	Compass Chemical International LLC		3,431,082
			Consolidated Energy Finance S.A.		961,204
AIRLINES - 0.34%			Cornerstone Chemical Company		787,500
XPO Logistics, Inc.		997,004	INEOS Group Holdings PLC		487,425
			LBC Tank Terminals Holding Netherlands B.V.		1,357,738
AUTOMOTIVE - 9.36%			NABCO, Inc.		382,987
Accuride Corp		1,533,750	Omnova Solutions, Inc.		1,200,000
CG Holdings Manufacturing Company		4,161,835	Pinnacle Operating Corporation		992,500
Chrysler Group, LLC		452,350	Polytex Holdings LLC		2,399,906
Commercial Vehicle Group Inc.		1,013,725			12,000,342
DPL Holding Corporation		4,310,702
Grakon Parent		3,553,819	CONSTRUCTION - 2.74%
International Automotive Component		1,020,000	Ashtead Group plc		408,100
J A C Holding Enterprises, Inc.		671,701	ARI Holding Corporation		4,311,108
J.B. Poindexter Co., Inc.		1,070,000	Jurassic Holdings III Inc		780,000
K & N Parent, Inc.		294,874	Torrent Group Holdings, Inc.		1,941,525
Lear Corporation		738,750	Safety Infrastructure Solutions		589,778
Meritor, Inc.		2,079,520			8,030,511
Moog Inc.		519,942
Power Stop Holdings LLC		3,527,009	CONSUMER CYCLICAL SERVICES - 3.23%
Randy’s Worldwide Automotive		2,511,787	A W X Holdings Corporation		367,500
		27,459,764	Church Services Holding Company		1,534,773
			HVAC Holdings, Inc.		3,271,483
BROKERAGE, ASSET MANAGERS & EXCHANGES - 0.74%			Mail Communications Group, Inc.		722,030
Icahn Enterprises L.P.		2,164,650	PPC Event Services		2,649,462
			West Corporation		935,000
BUILDING MATERIALS - 3.14%					9,480,248
ACP Cascade Holdings LLC		—
Janus Group Holdings LLC		3,722,889	CONSUMER PRODUCTS - 10.04%
Nortek, Inc.		14,548	AMS Holding LLC		780,919
Ply Gem Industries, Inc.		967,500	Animal Supply Company		3,441,787
Roofing Supply		770,964	Blue Wave Products, Inc.		1,699,749
Sunrise Windows Holding Company		3,728,814	gloProfessional Holdings, Inc.		3,232,955
Wellborn Forest Holding Company		—	GTI Holding Company		1,679,461
		9,204,715	Handi Quilter Holding Company		3,421,769
CABLE & SATELLITE - 1.34%			K N B Holdings Corporation		226,038
Altice S.A.		967,500	Manhattan Beachwear Holding Company		2,538,549

See Notes to Consolidated Financial Statements

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

	Fair Value/			Fair Value/
Industry Classification: (Continued)	Market Value			Market Value

Master Cutlery LLC	$	3,129,778	FINANCE COMPANIES - 0.34%
Perry Ellis International, Inc.		259,375	CIT Group Inc.	$	992,500
Prestige Brands Holdings, Inc.		1,350,000
R A J Manufacturing Holdings LLC		801,451	FINANCIAL OTHER - 2.44%
Transpac Holding Company		—	Ally Financial, Inc.		1,636,504
Tranzonic Holdings LLC		3,449,241	Alta Mesa Financial Services		605,930
York Wall Holding Company		3,439,386	Family Tree Escrow, LLC		329,174
		29,450,458	First Data Corporation		731,250
			Hub International Ltd.		1,020,000
DIVERSIFIED MANUFACTURING - 9.55%			Insurance Claims Management, Inc.		355,196
ABC Industries, Inc.		1,109,520	Nielsen Finance LLC		995,000
Airxcel Holdings		3,416,905	Onex Corporation		310,200
Amsted Industries		516,100	REVSpring, Inc.		650,158
Arch Global Precision LLC		4,200,507	Safway Group Holding LLC/Finance Corporation		511,145
ATACN		93,955			7,144,557
Belden Inc.		397,700
BP SCI LLC		1,161,533	FOOD & BEVERAGE - 6.43%
CTP Transportation Products, LLC		657,225	1492 Acquisition LLC		1,847,598
Custom Engineered Wheels, Inc.		754,259	Dean Foods		676,260
F G I Equity LLC		1,562,244	Eatem Holding Company		938,580
Forum Energy Technologies		321,750	F F C Holding Corporation		572,194
Hi-Rel Group LLC		2,227,066	Golden County Foods Holding, Inc.		—
Ideal Tridon Holdings, Inc.		565,908	H.J. Heinz Company		1,088,750
K P I Holdings, Inc.		794,663	Hospitality Mints Holding Company		2,214,474
Motion Controls Holdings		3,209,333	Impact Confections		2,518,612
NetShape Technologies, Inc.		1,961,991	JBS USA Holdings, Inc.		815,625
Strahman Holdings Inc		2,478,116	JMH Investors LLC		2,387,427
Supreme Industries, Inc.		1,125,849	KeHE Distributors, LLC		1,050,000
Truck Bodies & Equipment International		1,478,419	Spartan Foods Holding Company		1,386,086
		28,033,043	WP Supply Holding Corporation		3,385,360
EDUCATION - 1.08%					18,880,966
CHG Alternative Education Holding Company		3,178,509
			HEALTHCARE - 6.51%
ELECTRIC - 2.65%			American Hospice Management Holding LLC		2,419,660
Calpine Corporation		680,750	ECG Consulting Group		2,798,108
Connecticut Electric, Inc.		1,728,656	Endo Finance LLC		987,500
E S P Holdco, Inc.		659,726	GD Dental Services LLC		325,106
Hartland Controls Holding Corporation		3,693,668	HCA Holdings, Inc.		1,007,500
NRG Energy, Inc.		1,015,000	Healthcare Direct Holding Company		230,931
		7,777,800	HealthSouth Corporation		401,351
ENVIRONMENTAL - 0.96%			Kindred Escrow Corp. II		1,086,250
MES Partners, Inc.		2,843,661	MedSystems Holdings LLC		528,254
			Select Medical Corporation		656,500

See Notes to Consolidated Financial Statements

Babson Capital Corporate Investors

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

	Fair Value/			Fair Value/
Industry Classification: (Continued)	Market Value			Market Value

Surgical Care Affiliates, Inc.	$	918,000	MEDIA & ENTERTAINMENT - 3.98%
Synarc-BioCore Holdings, LLC		910,000	BlueSpire Holding, Inc.	$	3,484,145
Synteract Holdings Corporation		4,368,755	GlynnDevins Acquisition Corporation		1,744,116
Tenet Healthcare Corporation		739,500	HOP Entertainment LLC		—
TherOX, Inc.		—	Lamar Media Corp.		323,600
Touchstone Health Partnership		—	Money Mailer		2,704,364
Valeant Pharmaceuticals International		915,200	Netflix, Inc.		624,663
VRX Escrow Corp.		804,483	Northwest Mailing Services, Inc.		654,173
		19,097,098	Sirius XM Radio Inc.		1,010,000
			Sundance Investco LLC		—
HOME CONSTRUCTION - 1.35%			Univision Communications, Inc.		1,145,322
D.R. Horton, Inc.		994,700			11,690,383
Lennar Corporation		990,000	METALS & MINING - 0.77%
William Lyon Homes		1,035,000	Commercial Metals Company		1,410,000
Woodside Homes Company, LLC		945,000	Murray Energy Corporation		840,000
		3,964,700			2,250,000
			MIDSTREAM - 2.68%
INDUSTRIAL OTHER - 4.68%			CVR Refining LLC		650,000
ADT Corporation		1,050,000	Ferrellgas Partners, L.P		466,163
Advanced Manufacturing Enterprises LLC		599,105	MarkWest Energy Partners, L.P.		977,500
Advanced Technologies Holdings		1,118,105	Pearlman Enterprises, Inc.		3,877,149
AFC - Dell Holding Corporation		2,649,755	Regency Energy Partners LP		888,869
Aquilex Holdings LLC		292,719	Suburban Propane Partners, L.P.		997,500
Arrow Tru-Line Holdings, Inc.		346,421			7,857,181
Brunswick Corporation		398,000	OIL FIELD SERVICES - 6.57%
Clough, Harbour and Associates		705,102	American Energy - Marcellus, LLC		112,637
EPM Holding Company		1,381,088	Antero Resources Corporation		768,000
International Wire Group		517,500	Avantech Testing Services LLC		1,054,202
Milacron Financial		515,000	Bonanza Creek Energy, Inc.		897,500
O E C Holding Corporation		1,591,199	Caelus Energy Alaska, LLC		810,000
Signature Systems Holdings Company		860,400	California Resources Corporation		834,200
SMB Machinery Holdings, Inc.		1,130,369	Cimarex Energy Co.		1,070,000
Wheaton Holding Corporation		562,356	Hilcorp Energy Company		468,850
		13,717,119	Hornbeck Offshore Services, Inc.		430,000
LEISURE - 2.27%			Jupiter Resources Inc.		837,500
CTM Holding, Inc.		3,259,162	Magnum Hunter Resources, Corp.		1,342,500
HHI Group, LLC		3,390,213	Memorial Production Partners LP		904,500
		6,649,375	Oasis Petroleum Inc.		1,015,000
LODGING - 0.35%			Petroplex Inv Holdings LLC		466,032
Hilton Worldwide Holdings, LLC		1,038,700	Precision Drilling Corporation		735,000

See Notes to Consolidated Financial Statements

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2015

(Unaudited)

	Fair Value/			Fair Value/
Industry Classification: (Continued)	Market Value			Market Value

Rosetta Resources Inc.	$	1,067,500	REFINING - 0.77%
Teine Energy Ltd.		868,500	Calumet Specialty Products Partners L.P.	$	1,020,000
Topaz Marine S.A.		977,500	CITGO Petroleum Corporation		908,813
Tristar Global Energy Solutions, Inc.		2,166,611	Paragon Offshore plc.		330,000
Welltec A/S		716,250			2,258,813
WPX Energy, Inc.		852,156	RETAILERS - 0.35%
Stone Energy Corporation		870,000	HD Supply, Inc.		268,644
		19,264,438	Rite Aid Corporation		766,320
PACKAGING - 1.09%					1,034,964
Beverage Packaging Holdings		730,000	TECHNOLOGY - 1.88%
Chase Packaging Corporation		658	Anixter, Inc.		428,368
Coveris Holdings S.A.		995,000	Audatex North America, Inc.		449,018
Mustang Merger Corporation		1,015,000	Commscope Holdings Inc.		518,750
Vitex Packaging Group, Inc.		462,566	DuPont Fabros Technology, Inc.		591,000
		3,203,224	Micron Technology, Inc.		958,750
PAPER - 1.93%			NXP BV/NXP Funding LLC		1,511,250
Clearwater Paper Corporation		710,625	Sabre GLBL Inc.		341,795
Dunn Paper		3,719,750	Smart Source Holdings LLC		702,626
G C Holdings		383,812			5,501,557
Xerium Technologies, Inc.		860,085	TRANSPORTATION SERVICES - 2.06%
		5,674,272	Kenan Advantage Group, Inc.		1,041,250
PHARMACEUTICALS - 4.09%			MNX Holding Company		3,050,631
Clarion Brands Holding Corp.		3,480,174	VP Holding Company		949,780
ERG Holding Company LLC		2,071,843	Watco Companies, L.L.C.		1,012,500
Forest Laboratories, Inc.		1,925,193			6,054,161
GenNx Novel Holding, Inc.		3,504,405	WIRELESS - 0.10%
Mallinckrodt PLC		1,022,500	Sprint Corporation		292,194
		12,004,115
			Total Investments - 103.67%	$	304,190,578

See Notes to Consolidated Financial Statements

Babson Capital Corporate Investors

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. History

Babson Capital Corporate Investors (the “Trust”) commenced operations in 1971 as a Delaware corporation. Pursuant to an Agreement and Plan of Reorganization dated November 14, 1985, approved by shareholders, the Trust was reorganized as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts, effective November 28, 1985.

The Trust is a diversified closed-end management investment company. Babson Capital Management LLC (“Babson Capital”), a wholly-owned indirect subsidiary of Massachusetts Mutual Life Insurance Company (“MassMutual”), acts as its investment adviser. The Trust’s investment objective is to maintain a portfolio of securities providing a current yield and at the same time offering an opportunity for capital gains. The Trust’s principal investments are privately placed, below-investment grade, long-term debt obligations. Such direct placement securities may, in some cases, be accompanied by equity features such as common stock, warrants, conversion rights, or other equity features and, occasionally, preferred stocks. The Trust typically purchases these investments, which are not publicly tradable, directly from their issuers in private placement transactions. These investments are typically mezzanine debt instruments with accompanying private equity securities made to small or middle market companies. In addition, the Trust may invest, subject to certain limitations, in marketable investment grade debt securities, other marketable debt (including high yield securities) and marketable common stocks. Below-investment grade or high yield securities have predominantly speculative characteristics with respect to the capacity of the issuer to pay interest and repay capital.

On January 27, 1998, the Board of Trustees authorized the formation of a wholly-owned subsidiary of the Trust (“CI Subsidiary Trust”) for the purpose of holding certain investments. The results of CI Subsidiary Trust are consolidated in the accompanying financial statements. Footnote 2.D below discusses the Federal tax consequences of the CI Subsidiary Trust.

2. Significant Accounting Policies

The following is a summary of significant accounting policies followed consistently by the Trust in the preparation of its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

The Trustees have determined that the Trust is an investment company in accordance with Accounting Standards Codification (“ASC”) 946, Financial Services – Investment Companies, for the purpose of financial reporting.

A. Fair Value Measurements:

Under U.S. GAAP, fair value represents the price that should be received to sell an asset (exit price) in an orderly transaction between willing market participants at the measurement date.

Determination of Fair Value

The determination of the fair value of the Trust’s investments is the responsibility of the Trust’s Board of Trustees (the “Trustees”). The Trustees have adopted procedures for the valuation of the Trust’s securities and has delegated responsibility for applying those procedures to Babson Capital. Babson Capital has established a Pricing Committee which is responsible for setting the guidelines used in following the procedures adopted by the Trustees and ensuring that those guidelines are being followed. Babson Capital considers all relevant factors that are reasonably available, through either public information or information directly available to Babson Capital, when determining the fair value of a security. The Trustees meet at least once each quarter to approve the value of the Trust’s portfolio securities as of the close of business on the last business day of the preceding quarter. This valuation requires the approval of a majority of the Trustees of the Trust, including a majority of the Trustees who are not interested persons of the Trust or of Babson Capital. In approving valuations, the Trustees will consider reports by Babson Capital analyzing each portfolio security in accordance with the procedures and guidelines referred to above, which include the relevant factors referred to below. Babson Capital has agreed to provide such reports to the Trust at least quarterly. The consolidated financial statements include private placement restricted securities valued at $200,189,002 (68.23% of net assets) as of June 30, 2015 whose values have been estimated by the Trustees based on the process described above in the absence of readily ascertainable market values. Due to the inherent uncertainty of valuation, those estimated values may differ significantly from the values that would have been used had a ready market for the securities existed, and the differences could be material.

Following is a description of valuation methodologies used for assets recorded at fair value.

Corporate Public Securities – Corporate Bonds, Preferred Stocks and Common Stocks

The Trust uses external independent third-party pricing services to determine the fair values of its Corporate Public Securities. At June 30, 2015, 100% of the carrying value of these investments was from external pricing services. In the event that the primary pricing service does not provide a price, the Trust utilizes the pricing provided by a secondary pricing service.

Public debt securities generally trade in the over-the-counter market rather than on a securities exchange. The Trust’s pricing services use multiple valuation techniques to determine fair value. In instances where significant market activity exists, the pricing services may utilize a market based approach through which quotes from market makers are used to determine fair value. In instances where significant market activity may not exist or is limited, the pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, option adjusted spreads, credit spreads, estimated default rates, coupon rates, anticipated timing of principal underlying prepayments, collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair value.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

The Trust’s investments in bank loans are normally valued at the bid quotation obtained from dealers in loans by an independent pricing service in accordance with the Trust’s valuation policies and procedures approved by the Trustees. Public equity securities listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sales price of that day. Annually, Babson Capital conducts reviews of the primary pricing vendors to validate that the inputs used in that vendors’ pricing process are deemed to be market observable as defined in the standard. While Babson Capital is not provided access to proprietary models of the vendors, the reviews have included on-site walk-throughs of the pricing process, methodologies and control procedures for each asset class and level for which prices are provided. The review also includes an examination of the underlying inputs and assumptions for a sample of individual securities across asset classes, credit rating levels and various durations, a process Babson Capital continues to perform annually. In addition, the pricing vendors have an established challenge process in place for all security valuations, which facilitates identification and resolution of prices that fall outside expected ranges. Babson Capital believes that the prices received from the pricing vendors are representative of prices that would be received to sell the assets at the measurement date (exit prices) and are classified appropriately in the hierarchy. Corporate Restricted Securities – Corporate Bonds The fair value of certain notes is determined using an internal model that discounts the anticipated cash flows of those notes using a specific discount rate. Changes to that discount rate are driven by changes in general interest rates, probabilities of default and credit adjustments. The discount rate used within the models to discount the future Quantitative Information about Level 3 Fair Value Measurements anticipated cash flows is considered a significant unobservable input. Significant increases/(decreases) in the discount rate would result in a significant (decrease)/increase to the notes’ fair value.		The fair value of certain distressed notes is based on an enterprise waterfall methodology which is discussed in the equity security valuation section below. Corporate Restricted Securities – Common Stock, Preferred Stock and Partnerships & LLC’s The fair value of equity securities is determined using an enterprise waterfall methodology. Under this methodology, the enterprise value of the company is first estimated and that value is then allocated to the company’s outstanding debt and equity securities based on the documented priority of each class of securities in the capital structure. Generally, the waterfall proceeds from senior debt tranches of the capital structure to senior then junior subordinated debt, followed by each class of preferred stock and finally the common stock. To estimate a company’s enterprise value, the company’s trailing twelve months earnings before interest, taxes, depreciation and amortization (“EBITDA”) is multiplied by a valuation multiple. A discount for lack of marketability is applied to the end result. Both the company’s EBITDA and valuation multiple are considered significant unobservable inputs. Significant increases/(decreases) to the company’s EBITDA and/or valuation multiple would result in significant increases/ (decreases) to the equity value. An increase/(decrease) to the discount would result in a (decrease)/increase to the equity value. Short-Term Securities Short-term securities, of sufficient credit quality, with more than sixty days to maturity are valued at fair value, using external independent third-party services. Short-term securities having a maturity of sixty days or less are valued at amortized cost, which approximates fair value.

Quantitative Information about Level 3 Fair Value Measurements

The following table represents quantitative information about Level 3 fair value measurements as of June 30, 2015.

	Valuation Technique	Unobservable Inputs	Range	Weighted Average

Corporate Bonds	Discounted Cash Flows	Discount Rate	7.9% to 17.6%	12.8%

Equity Securities	Market Approach	Valuation Multiple	4.9x to 12.3x	7.7x

		Discount for lack of marketability	0% to 24%	3.2%

		EBITDA	$0.8 million to $154.7 million	$21.1 million

Babson Capital Corporate Investors

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Fair Values Hierarchy

The Trust 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 June 30, 2015:

Assets:	Total		Level 1		Level 2		Level 3
Restricted Securities
Corporate Bonds	$	195,995,589	$	—	$	54,975,850	$	141,019,739
Common Stock - U.S.		18,673,857		—		—		18,673,857
Preferred Stock		15,274,047		—		72,754		15,201,293
Partnerships and LLCs		25,294,113		—		—		25,294,113
Public Securities
Bank Loans		2,125,356		—		2,125,356
Corporate Bonds		45,686,561		—		45,686,561		—
Common Stock - U.S.		1,141,055		1,141,055		—		—
Short-term Securities		—		—		—		—
Total	$	304,190,578	$	1,141,055	$	102,860,521	$	200,189,002

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:

	Beginning														Transfers		Transfers		Ending
	balance at		Included in												into		out of		balance at
Assets:	12/31/2014		earnings			Purchases			Sales			Prepayments			Level 3		Level 3		06/30/2015
Restricted Securities
Corporate Bonds	$	131,162,430	$	(771,115	)	$	30,824,100		$	(5,304,896	)	$	(14,890,780	)	$	—	$	—	$	141,019,739
Common Stock - U.S.		20,112,954		1,902,835			1,235,868			(4,577,800	)		—			—		—		18,673,857
Preferred Stock		12,766,592		2,837,109			(171,205	)		(231,203	)		—			—		—		15,201,293
Partnerships and LLCs		22,013,933		1,872,441			2,463,993			(1,056,254	)		—			—		—		25,294,113
Public Securities
Common Stock - U.S.		—		—			—			—			—			—		—		—
	$	186,055,909	$	5,841,270		$	34,352,756		$	(11,170,153	)	$	(14,890,780	)	$	—	$	—	$	200,189,002

There were no transfers into or out of Level 1 or Level 2 assets.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Income, Gains and Losses included in Net Increase in Net Assets resulting from Operations for the period are presented in the following accounts on the Statement of Operations:				The Trust is taxed as a regulated investment company and is therefore limited as to the amount of non-qualified income that it may receive as the result of operating a trade or business, e.g. the Trust’s pro rata share of income allocable to the Trust by a partnership operating company. The Trust’s violation of this limitation could result in the loss of its status as a regulated investment company, thereby subjecting all of its net income and capital gains to corporate taxes prior to distribution to its shareholders. The Trust, from time-to-time, identifies investment opportunities in the securities of entities that could cause such trade or business income to be allocable to the Trust. The CI Subsidiary Trust (described in Footnote 1 above) was formed in order to allow investment in such securities without adversely affecting the Trust’s status as a regulated investment company. The CI Subsidiary Trust is not taxed as a regulated investment company. Accordingly, prior to the Trust receiving any distributions from the CI Subsidiary Trust, all of the CI Subsidiary Trust’s taxable income and realized gains, including non-qualified income and realized gains, is subject to taxation at prevailing corporate tax rates. As of June 30, 2015, the CI Subsidiary Trust has incurred income tax expense of $6,773. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities and their respective tax basis. As of June 30, 2015, the CI Subsidiary Trust has a deferred tax liability of $1,682,824. The Trust recognizes a tax benefit from an uncertain position only if it is more likely than not that the position is sustainable, based solely on its technical merits and consideration of the relevant taxing authority’s widely understood administrative practices and precedents. If this threshold is met, the Trust measures the tax benefit as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. The Trust has evaluated and determined that the tax positions did not have a material effect on the Trust’s financial position and results of operations for the six months ended June 30, 2015. Each of the Trust’s Federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. E. Distributions to Shareholders: The Trust records distributions to shareholders from net investment income and net realized gains, if any, on the ex-dividend date. The Trust’s net investment income dividend is declared four times per year, in April, July, October, and December. The Trust’s net realized capital gain distribution, if any, is declared in December. 3. Investment Services Contract A. Services: Under an Investment Services Contract (the “Contract”) with the Trust, Babson Capital agrees to use its best efforts to present to the Trust a continuing and suitable investment program consistent with the investment objectives and policies of the Trust. Babson Capital represents the Trust in any negotiations with issuers, investment banking firms, securities brokers or dealers and other institutions or investors relating to the Trust’s investments. Under the Contract, Babson Capital also provides administration of the day-to-day operations of the Trust and provides the Trust with office space and office equipment, accounting and bookkeeping services, and necessary executive, clerical and secretarial personnel for the performance of the foregoing services.

			Change in
			Unrealized
			Gains &
		Net Increase in	(Losses) in
		Net Assets	Net Assets
		Resulting from	from assets
		Operations	still held
Interest (Amortization)	$	256,937	—
Net realized gain on
investments before taxes	$	831,608	—
Net change in unrealized
depreciation of investments before taxes	$	4,752,725	4,664,075


B. Accounting for Investments: Investment transactions are accounted for on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis, including the amortization of premiums and accretion of discounts on bonds held using the yield-to-maturity method. The Trust does not accrue income when payment is delinquent and when management believes payment is questionable. Realized gains and losses on investment transactions and unrealized appreciation and depreciation of investments are reported for financial statement and Federal income tax purposes on the identified cost method. C. Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. D. Federal Income Taxes: The Trust has elected to be taxed as a “regulated investment company” under the Internal Revenue Code, and intends to maintain this qualification and to distribute substantially all of its net taxable income to its shareholders. In any year when net long-term capital gains are realized by the Trust, management, after evaluating the prevailing economic conditions, will recommend that the Trustees either designate the net realized long-term gains as undistributed and pay the Federal capital gains taxes thereon or distribute all or a portion of such net gains.

Babson Capital Corporate Investors

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

B. Fee:

For its services under the Contract, Babson Capital is paid a quarterly investment advisory fee of 0.3125% of the net asset value of the Trust as of the last business day of each fiscal quarter, which is approximately equal to 1.25% annually. A majority of the Trustees, including a majority of the Trustees who are not interested persons of the Trust or of Babson Capital, approve the valuation of the Trust’s net assets as of such day.

C. Basis for Board Renewal of Contract:

At a meeting of the Trustees held on April 17, 2015, the Trustees (including a majority of the Trustees who are not “interested persons” of the Trust or Babson Capital) unanimously approved a one year continuance of the Contract.

Prior to the meeting, the Trustees requested and received from Ropes & Gray LLP, counsel to the Trust, a memorandum describing the Trustees’ legal responsibilities in connection with their review and reapproval of the Contract. The Trustees also requested and received from Babson Capital extensive written and oral information regarding among other matters including: the principal terms of the Contract; the reasons why Babson Capital was proposing the continuance of the Contract; Babson Capital and its personnel; the Trust’s investment performance, including comparative performance information; the nature and quality of the services provided by Babson Capital to the Trust; financial strength of Babson Capital; the fee arrangements between Babson Capital and the Trust; fee and expense information, including comparative fee and expense information; profitability of the advisory arrangement to Babson Capital; and “fallout” benefits to Babson Capital resulting from the Contract.

Among other things, the Trustees discussed and considered with management (i) the aforementioned guidance provided by Ropes & Gray LLP and the information provided by Babson Capital prior to the meeting and (ii) the reasons Babson Capital put forth in support of its recommendation that the Trustees approve the continuance of the Contract. These considerations are summarized below.

NATURE, EXTENT AND QUALITY OF SERVICES TO BE PROVIDED BY BABSON CAPITAL TO THE TRUST

In evaluating the scope and quality of the services provided by Babson Capital to the Trust, the Trustees considered, among other factors: (i) the scope of services required to be provided by Babson Capital under the Contract; (ii) Babson Capital’s ability to find and negotiate private placement securities having equity features that are consistent with the stated investment objectives of the Trust; (iii) the experience and quality of Babson Capital’s staff; (iv) the strength of Babson Capital’s financial condition; (v) the nature of the private placement market compared to public markets (including the fact that finding, analyzing, negotiating and servicing private placement securities is more labor-intensive than buying and selling public securities and the administration of private placement securities is more extensive, expensive, and requires greater time and expertise than a portfolio of only public securities); (vi) the potential advantages afforded to the Trust by its ability to co-invest in negotiated private placements with MassMutual and its affiliates; and (vii) the expansion of the scope of services provided by Babson Capital as a result of recent regulatory and legislative initiatives that have required increased legal, compliance and business attention and diligence. Based on such considerations, the Trustees concluded that, overall, they are satisfied with the nature, extent and quality of services provided by Babson Capital, and expected to be provided in the future, under the Contract.

INVESTMENT PERFORMANCE

The Trustees also examined the Trust’s short-term, intermediate-term, and long-term performance as compared against various benchmark indices presented at the meeting, which showed that the Trust had outperformed such indices for the 1-, 3-, 5- and 10-year periods. In addition, the Trustees considered comparisons of the Trust’s performance with the performance of (i) selected closed-end investment companies and funds that may invest in private placement securities and/or bank loans; (ii) selected business development companies with comparable types of investments; and (iii) investment companies included in the Lipper closed-end bond universe. It was acknowledged that, while such comparisons are helpful in judging performance, they are not directly comparable in terms of types of investments due to the fact that business development companies often report returns based on market value, which is affected by factors other than the performance of the underlying portfolio investments. Based on these considerations and the detailed performance information provided to the Trustees at the regular Board meetings each quarter, the Trustees concluded that the Trust’s absolute and relative performance over time have been sufficient to warrant renewal of the Contract.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

ADVISORY FEE/COSTS OF SERVICES PROVIDED AND PROFITABILITY/ MANAGER’S “FALL-OUT” BENEFITS In connection with the Trustees’ consideration of the advisory fee paid by the Trust to Babson Capital under the Contract, Babson Capital noted that it was unaware of any registered closed-end investment companies that are directly comparable to the Trust in terms of the types of investments and percentages invested in private placement securities (which require more extensive advisory and administrative services than a portfolio of publicly traded securities, as previously discussed) other than Babson Capital Participation Investors, which also is advised by Babson Capital. Under the terms of its Investment Advisory and Administrative Services Contract, Babson Capital Participation Investors is charged a quarterly investment advisory fee of 0.225% of net asset value as of the end of each quarter, which is approximately equal to 0.90% annually. In considering the fee rate provided in the Contract, the Trustees noted the advisory fee charged by Babson Capital to Tower Square Capital Partners, L.P., and Tower Square Capital Partners II and III, L.P., each a private mezzanine fund also managed by Babson Capital, and that the fee Babson Capital Participation Investors charged compares favorably. At the request of the Trustees, Babson Capital provided information concerning the profitability of Babson Capital’s advisory relationship with the Trust. The Trustees also considered the non-economic benefits Babson Capital and its affiliates derived from its relationship with the Trust, including the reputational benefits derived from having the Trust listed on the New York Stock Exchange, and the de minimis amount of commissions resulting from the Trust’s portfolio transactions used by Babson Capital for third-party soft dollar arrangements. The Trustees recognized that Babson Capital should be entitled to earn a reasonable level of profit for services provided to the Trust and, based on their review, concluded that they were satisfied that Babson Capital’s historical level of profitability from its relationship with the Trust was not excessive and that the advisory fee under the Contract is reasonable. ECONOMIES OF SCALE The Trustees considered the concept of economies of scale and possible advisory fee reductions if the Trust were to grow in assets. Given that the Trust is not continuously offering shares, such growth comes principally from retained net realized gain on investments and dividend reinvestment. The Trustees also examined the breakpoint features of selected competitive funds and noted that the minimum starting point for fee reductions in those funds was at least $200 million, close to the value of the Trust’s current net assets. The Trustees concluded that the absence of breakpoints in the fee schedule under the Contract was currently acceptable given the Trust’s current size and closed-end fund structure. 4. Senior Secured Indebtedness MassMutual holds the Trust’s $30,000,000 Senior Fixed Rate Convertible Note (the “Note”) issued by the Trust on November 15, 2007. The Note is due November 15, 2017 and accrues interest at 5.28% per annum. MassMutual, at its option, can convert the principal amount of the Note into common shares. The dollar amount of principal would be converted into an equivalent dollar amount of common shares based upon the average price of the common shares for ten business days prior to the notice of conversion. For the six months ended June 30, 2015, the Trust incurred total interest expense on the Note of $792,000.	The Trust may redeem the Note, in whole or in part, at the principal amount proposed to be redeemed together with the accrued and unpaid interest thereon through the redemption date plus a Make Whole Premium. The Make Whole Premium equals the excess of (i) the present value of the scheduled payments of principal and interest which the Trust would have paid but for the proposed redemption, discounted at the rate of interest of U.S. Treasury obligations whose maturity approximates that of the Note plus 0.50% over (ii) the principal of the Note proposed to be redeemed. 5. Purchases and Sales of Investments
		For the six
		months ended
		06/30/2015
					Proceeds
		Cost of			from
		Investments			Sales or
		Acquired			Maturities
	Corporate restricted securities	$		50,424,866	$	38,333,940
	Corporate public securities			3,246,715		10,913,817

	The aggregate cost of investments is substantially the same for financial reporting and Federal income tax purposes as of June 30, 2015. The net unrealized appreciation of investments for financial reporting and Federal tax purposes as of June 30, 2015 is $7,807,779 and consists of $31,189,919 appreciation and $23,382,140 depreciation. Net unrealized appreciation of investments on the Statement of Assets and Liabilities reflects the balance net of a deferred tax accrual of $1,682,824 on net unrealized gains on the CI Subsidiary Trust. 6. Quarterly Results of Investment Operations (Unaudited)
			March 31, 2015
			Amount		Per Share
	Investment income		$	6,960,194	$	—
	Net investment income			5,449,489		0.28
	Net realized and unrealized gain on
	investments (net of taxes)			7,158,460		0.37

			June 30, 2015
			Amount		Per Share
	Investment income		$	6,974,880	$	—
	Net investment income			5,445,723		0.28
	Net realized and unrealized gain on
	investments (net of taxes)			74,744		0.00

Babson Capital Corporate Investors

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

7.	Results of Shareholder Meeting

	The Annual Meeting of Shareholders was held on Friday, April 17, 2015. The shareholders were asked to vote to re-elect as Trustees William J. Barrett and Clifford M. Noreen for three year terms. The shareholders approved the proposal. The Trust’s other Trustees, Michael H. Brown, Barbara M. Ginader, Edward P. Grace, Robert E. Joyal, Susan B. Sweeney and Maleyne M. Syracuse continued to serve their respective terms following the April 17, 2015 Annual Shareholder Meeting. The results of the voting are set forth below.

						% of shares
	Shares for	Withheld		Total		Voted for
	William J. Barrett
	15,461,708		351,989		15,813,697		97.77	%
	Clifford M. Noreen
	15,538,681		275,016		15,813,697		98.26	%

THIS PRIVACY NOTICE IS BEING PROVIDED BY THE FOLLOWING ENTITIES: BABSON CAPITAL MANAGEMENT LLC; BABSON CAPITAL SECURITIES LLC; BABSON CAPITAL MANAGEMENT (JAPAN) KK; BABSON CAPITAL CORNERSTONE ASIA LTD.; BABSON CAPITAL FUNDS TRUST; BABSON CAPITAL GLOBAL SHORT DURATION HIGH YIELD FUND; BABSON CAPITAL CORPORATE INVESTORS AND BABSON CAPITAL PARTICIPATION INVESTORS (TOGETHER, FOR PURPOSES OF THIS PRIVACY NOTICE, “BABSON CAPITAL”).

When you use Babson Capital you entrust us not only with your hard-earned assets but also with your personal and financial data. We consider your data to be private and confidential, and protecting its confidentiality is important to us. Our policies and procedures regarding your personal information are summarized below.

We may collect non-public personal information about you from:

●	Applications or other forms, interviews, or by other means;

●	Consumer or other reporting agencies, government agencies, employers or others;

●	Your transactions with us, our affiliates, or others; and

●	Our Internet website.

We may share the financial information we collect with our financial service affiliates, such as insurance companies, investment companies and securities broker-dealers. Additionally, so that we may continue to offer you products and services that best meet your investment needs and to effect transactions that you request or authorize, we may disclose the information we collect, as described above, to companies that perform administrative or marketing services on our behalf, such as transfer agents, custodian banks, service providers or printers and mailers that assist us in the distribution of investor materials or that provide operational support to Babson Capital. These companies are required to protect this information and will use this information only for the services for which we hire them, and are not permitted to use or share this information for any other purpose. Some of these companies may perform such services in jurisdictions other than the United States. We may share some or all of the information we collect with other financial institutions with whom we jointly market products. This may be done only if it is permitted by the state in which you live. Some disclosures may be limited to your name, contact and transaction information with us or our affiliates.

Any disclosures will be only to the extent permitted by federal and state law. Certain disclosures may require us to get an “opt-in” or “opt-out” from you. If this is required, we will do so before information is shared. Otherwise, we do not share any personal information about our customers or former customers unless authorized by the customer or as permitted by law.

We restrict access to personal information about you to those employees who need to know that information to provide products and services to you. We maintain physical, electronic and procedural safeguards that comply with legal standards to guard your personal information. As an added measure, we do not include personal or account information in non-secure e-mails that we send you via the Internet without your prior consent. We advise you not to send such information to us in non-secure e-mails.

This notice describes the privacy policies of Babson Capital, and applies to all accounts you presently have, or may open in the future, with Babson Capital using your social security number or federal taxpayer identification number. As mandated by various regulators, including rules issued by the Securities and Exchange Commission, we will be sending you this notice annually, as long as you remain a customer of Babson Capital.

Babson Capital Securities LLC is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). Investors may obtain information about SIPC including the SIPC brochure by contacting SIPC online at www.sipc.org or calling (202) 371-8300. Investors may obtain information about FINRA including the FINRA Investor Brochure by contacting FINRA online at www.finra.org or by calling (800) 289-9999.

June 2015

Babson Capital Corporate Investors

This page left intentionally blank.

Babson Capital Corporate Investors

Members of the Board of Trustees

William J. Barrett

Michael H. Brown*

Barbara M. Ginader

Edward P. Grace III

Robert E. Joyal

Clifford M. Noreen

Susan B. Sweeney*

Maleyne M. Syracuse*

*Member of the Audit Committee

Officers

Clifford M. Noreen

Chairman

Michael L. Klofas

President

James M. Roy

Vice President & Chief Financial

Officer

Christopher A. DeFrancis

Vice President, Secretary & Chief

Legal Officer

Sean Feeley

Vice President

Richard E. Spencer, II

Vice President

Daniel J. Florence

Treasurer

Melissa M. LaGrant

Chief Compliance Officer

DIVIDEND REINVESTMENT AND SHARE PURCHASE PLAN

Babson Capital Corporate Investors (the “Trust”) offers a Dividend Reinvestment and Share Purchase Plan (the “Plan”). The Plan provides a simple way for shareholders to add to their holdings in the Trust through the receipt of dividend shares issued by the Trust or through the investment of cash dividends in Trust shares purchased in the open market. A shareholder may join the Plan by filling out and mailing an authorization card to DST Systems, Inc., the Transfer Agent.

Participating shareholders will continue to participate until they notify the Transfer Agent, in writing, of their desire to terminate participation. Unless a shareholder elects to participate in the Plan, he or she will, in effect, have elected to receive dividends and distributions in cash. Participating shareholders may also make additional contributions to the Plan from their own funds. Such contributions may be made by personal check or other means in an amount not less than $10 nor more than $5,000 per quarter.

Cash contributions must be received by the Transfer Agent at least five days (but no more then 30 days) before the payment date of a dividend or distribution.

Whenever the Trust declares a dividend payable in cash or shares, the Transfer Agent, acting on behalf of each participating shareholder, will take the dividend in shares only if the net asset value is lower than the market price plus an estimated brokerage commission as of the close of business on the valuation day. The valuation day is the last day preceding the day of dividend payment.

When the dividend is to be taken in shares, the number of shares to be received is determined by dividing the cash dividend by the net asset value as of the close of business on the valuation date or, if greater than net asset value, 95% of the closing share price. If the net asset value of the shares is higher than the market value plus an estimated commission, the Transfer Agent, consistent with obtaining the best price and execution, will buy shares on the open market at current prices promptly after the dividend payment date.

The reinvestment of dividends does not, in any way, relieve participating shareholders of any federal, state or local tax. For federal income tax purposes, the amount reportable in respect of a dividend received in newly-issued shares of the Trust will be the fair market value of the shares received, which will be reportable as ordinary income and/or capital gains.

As compensation for its services, the Transfer Agent receives a fee of 5% of any dividend and cash contribution (in no event in excess of $2.50 per distribution per shareholder.)

Any questions regarding the Plan should be addressed to DST Systems, Inc., Transfer Agent for Babson Capital Corporate Investors’ Dividend Reinvestment and Share Purchase Plan, P.O. Box 219086, Kansas City, MO 64121-9086.

			Babson Capital Corporate Investors


	CI6216

ITEM 2. CODE OF ETHICS.

Not applicable for this filing.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable for this filing.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable for this filing.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable for this filing.

ITEM 6. SCHEDULE OF INVESTMENTS

(a) A schedule of investments for the Registrant is included as part of this report to shareholders under Item 1 of this Form N-CSR.

(b) Not applicable for this filing.

ITEM 7.

DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable for this filing.

ITEM 8.

PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable for this filing. There have been no changes in any of the Portfolio Managers identified in the Registrant's most recent annual report on Form N-CSR.

ITEM 9.

PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable for this filing.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not applicable for this filing. There have been no material changes to procedures by which the shareholders may recommend nominees to the Registrant’s Board of Trustees.

ITEM 11. CONTROLS AND PROCEDURES.

(a)

The principal executive officer and principal financial officer of the Registrant, or persons performing similar functions, have 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 "1940 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-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

(b)

There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the Registrant's second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

ITEM 12. EXHIBITS.

(a)(1)

ANY CODE OF ETHICS, OR AMENDMENTS THERETO, THAT IS THE SUBJECT OF DISCLOSURE REQUIRED BY ITEM 2, TO THE EXTENT THAT THE REGISTRANT INTENDS TO SATISFY THE ITEM 2 REQUIREMENTS THROUGH THE FILING OF AN EXHIBIT.

None.

(a)(2)

A SEPARATE CERTIFICATION FOR EACH PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER OF THE REGISTRANT AS REQUIRED BY RULE 30a-2 UNDER THE 1940 ACT.

Attached hereto as EX-99.31.1

Attached hereto as EX-99.31.2

(a)(3)

ANY WRITTEN SOLICITATION TO PURCHASE SECURITIES UNDER RULE 23c-1 UNDER THE 1940 ACT (17 CFR 270.23c-1) SENT OR GIVEN DURING THE PERIOD COVERED BY THE REPORT BY OR ON BEHALF OF THE REGISTRANT TO 10 OR MORE PERSONS.

Not applicable for this filing.

(b)

CERTIFICATIONS PURSUANT TO RULE 30a-2(b) UNDER THE 1940 ACT.

Attached hereto as EX-99.32

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:	/s/ Michael L. Klofas
	Michael L. Klofas, President

Date:	September 4, 2015

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:	/s/ Michael L. Klofas
	Michael L. Klofas, President

Date:	September 4, 2015


By:	/s/ James M. Roy
	James M. Roy, Vice President and Chief Financial Officer

Date:	September 4, 2015