Babson Capital Management LLC (Babson Capital), an investment management firm based in Springfield and Boston, Mass., and Charlotte, N.C., today announced that it has added $500 million in assets to its structured credit portfolio with the closing of Babson CLO Ltd. 2011-I, its first collateralized debt obligation since 2008.

The newly issued CLO brings to 53 the total number of collateralized debt obligations (CDOs), including CLOs, managed by Babson Capital, representing $19.8 billion in AUM as of June 30, 2011. Collateral underlying Babson CLO Ltd. 2011-I consists primarily of corporate senior secured loans with a small amount of second-lien loans and high-yield bonds.

“We are grateful for the confidence investors have placed in Babson Capital and in CLOs, which have demonstrated their resilience over many market cycles, notably the recent crisis,” said Russell Morrison, managing director and head of high-yield investments for Babson Capital.

The transaction was arranged by Citigroup.

As the world’s No. 1 CLO manager by assets under management1 as well as one of the world’s largest global high yield loan managers, Babson Capital leverages platform scale, proprietary investment tools and the combined expertise of 82 investment professionals on its Structured Credit and Global High Yield teams to understand, analyze and capture the risk premiums offered by CLOs.

1 – Creditflux, Dec. 2, 2010

About Babson Capital

Babson Capital Management LLC and its subsidiaries serve institutional investors around the globe and have $135.6 billion in assets under management as of June 30, 2011. Through proprietary research and analysis and a focus on investment fundamentals, we develop products and strategies that leverage our broad array of expertise in fixed income, equities, alternative, structured products, debt financing for corporations and debt and equity financing for commercial real estate. Based in Boston and Springfield, Mass., and Charlotte, N.C., with offices in New York City and Los Angeles, the firm’s subsidiaries include Babson Capital Europe Limited in London, Babson Capital Australia Pty Ltd in Sydney, Cornerstone Real Estate Advisers LLC in Hartford, Conn., and Wood Creek Capital Management, LLC in New Haven, Conn. Babson Capital is a member of the MassMutual Financial Group and is on the web at www.BabsonCapital.com.