Babson Capital Global Short Duration High Yield Fund

Announces Monthly Distribution of $0.1677 per Share for December 2013

CHARLOTTE, N.C.--()--Babson Capital Global Short Duration High Yield Fund (the “Fund”) (NYSE: BGH) announced its monthly dividend for December 2013 of $0.1677 per share payable on January 2, 2014. Based on the Fund’s November 29, 2013 share price of $22.98 per share, the distribution represents an annualized yield of 8.76% per share. Based on current projections through the payable date, the Fund expects that this distribution will be comprised of net investment income.

Additionally, the Fund announced estimated monthly distributions of $0.1677 per share for January 2014 and February 2014. The distribution schedule appears below:

Month   Ex-Date   Record Date   Payable Date  

Amount1

December 12/18/2013 12/20/2013 1/02/2014 $0.1677
January 1/21/2014 1/23/2014 2/03/2014 $0.1677
February 2/18/2014 2/20/2014 3/03/2014 $0.1677

1Amounts represent estimates for January and February.

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. In addition, the Fund expects to declare and pay in December a special dividend in such amount as is necessary to distribute the Fund’s undistributed income and realized capital gains.

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 and its subsidiaries serve institutional investors around the globe and have over $188 billion in assets under management as of September 30, 2013. Through proprietary research, analysis and a focus on investment fundamentals, the firm develops products and strategies that leverage its broad expertise in global fixed income, equities, alternatives, 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., the firm maintains a strong global footprint with offices in New York, Hartford, Chicago, Los Angeles, London, Hong Kong, Tokyo, Sydney and Melbourne. The firm’s subsidiaries include Babson Capital Finance, Cornerstone Real Estate Advisers and Wood Creek Capital Management. Babson Capital is a member of the MassMutual Financial Group.

Contacts

Luquire George Andrews
David Coburn, 704-552-6565, 704-408-4276
coburn@lgapr.com

Release Summary

Babson Capital Global Short Duration High Yield Fund (NYSE: BGH) announced its monthly dividend for December 2013 of $0.1677 per share payable on Jan. 2, 2014.

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Contacts

Luquire George Andrews
David Coburn, 704-552-6565, 704-408-4276
coburn@lgapr.com