Babson Capital Participation Investors (the Trust), formerly MassMutual Participation Investors, is a closed-end investment company. The Trust's investment objective is to maximize total return by providing a level of current income. The Trust's principal investments are privately placed, below-investment grade, long-term corporate debt obligations purchased directly from their issuers, which tend to be smaller companies. Half of these investments include equity features, such as warrants, conversion rights, or other equity features, which provide the Trust with the opportunity to realize capital gains. The Trust will also invest in publicly traded debt securities and in convertible preferred stocks. In addition, the Trust may temporarily invest in marketable securities. Babson Capital Management LLC manages the Trust on a total return basis.