Babson Capital Global Short Duration High Yield Fund Announces Initial Monthly Distribution of $0.1677 per Share

CHARLOTTE, N.C.--(BUSINESS WIRE)--Babson Capital Global Short Duration High Yield Fund (the “Fund”) (NYSE: BGH) announced its initial monthly dividend of $0.1677 per share payable on January 2, 2013. Based on the Fund’s initial public offering price of $25.00 per share, the distribution represents an annualized yield of 8.05% per share. Based on current projections through the payable date, the Fund expects that this distribution will be comprised of net interest income.

Additionally, the Fund announced estimated monthly distributions of $0.1677 per share for January 2013 and February 2013. The distribution schedule appears below:

Month	Ex-Date	Record Date	Payable Date	Amount^1
December	12/19/2012	12/21/2012	01/02/2013	$0.1677
January	01/21/2013	01/23/2013	02/01/2013	$0.1677
February	02/18/2013	02/20/2013	03/01/2013	$0.1677

These distributions are the first declared by the Fund following its initial public offering in October 2012.

As of the date of this statement, the Fund’s initial capital is approximately 92% invested, not including the use of leverage. The Fund’s portfolio is approximately 62% invested in senior secured bonds and loans, and 38% in unsecured bonds, as of the date of this statement.

The Fund is a non-diversified, closed-end management investment company that is managed by Babson Capital Management LLC. The Fund invests primarily in short-duration, global high yield bonds with the objective of seeking as high a level of current income as Babson Capital determines is consistent with capital preservation, with a secondary objective of capital appreciation. The Fund expects to maintain a weighted average portfolio duration, including the effects of leverage, of 3 years or less.

Cautionary Notice: Certain statements contained in this press release may be "forward looking" statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date in which they are made and which reflect management’s current estimates, projections, expectations or beliefs, and which are subject to risks and uncertainties that may cause actual results to differ materially. These statements are subject to change at any time based upon economic, market or other conditions and may not be relied upon as investment advice or an indication of the fund's trading intent. References to specific securities are not recommendations of such securities, and may not be representative of the fund's current or future investments. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events, or otherwise.

Because the Fund is newly organized, its shares have a limited history of public trading. Investors should read the Fund’s prospectus and consider carefully the risks, investment objectives, charges and expenses associated with an investment in the Fund’s common shares. For a copy of the prospectus, please contact your securities representative.

About Babson Capital

Babson Capital Management LLC and its subsidiaries serve institutional investors around the globe and have over $154 billion in assets under management as of September 30, 2012. Through proprietary research and a focus on investment fundamentals, we develop products and strategies that leverage our broad array of expertise in global corporate debt markets, structured products, debt and equity financing for commercial real estate, and alternatives. Headquartered in Boston, the firm’s subsidiaries include Cornerstone Real Estate Advisers LLC and Wood Creek Capital Management, LLC. Babson Capital is a member of the MassMutual Financial Group and is on the web at www.BabsonCapital.com.

¹ Amounts represent estimates for January and February.