Corporate Finance

Mezzanine Debt

Babson Capital has been an active participant in the Mezzanine and Private Equity markets for over 40 years. Our long-standing presence gives us an extensive deal flow network. Our long-standing relationships mean we are generally the lead or sole investors in transactions, providing us a significant competitive advantage relative to other investors.

Private Placements

Babson Capital's private fixed income strategy is driven by two key elements:

    - a rigorous credit analysis process; and
    - partner arrangements with experienced buyout sponsor groups.

We develop long-term, mutually beneficial relationships with these groups, which may include investing in their fund, in order to help maintain a steady and mostly proprietary flow of quality investment opportunities.

Our credit analysis process is a fundamental, bottom up approach in which we look for stable historical and predictable future cash flows, solid credit ratios and good management.

We spend much time in our due diligence process analyzing -
    - industry characteristics,
    - issuer strength, business models, and
    - trading history.

This approach is driven by our history as a long-time participant in the institutional private placement market and the resultant strong credit analysis skills of our investment professionals.