Alesco Financial suspends dividend for third quarter

By Angela McDaniels

Tacoma, Wash., Sept. 11 - Alesco Financial Inc. said it will suspend its dividend for the third quarter.

Tax losses incurred in the year to date are expected to eliminate taxable income for 2008, including $45.8 million of book gains generated when the company recently repurchased $78.8 million of its 7.625% contingent convertible senior notes due 2027 for $33 million in cash.

Decisions about future dividends will continue to consider projections regarding the company's taxable income and liquidity position, according to a company news release.

"As of June 30, available unrestricted cash was approximately $120 million, or nearly $90 million after completing the debt buy back," president and chief executive officer James McEntee said in the release. "We believe we remain positioned to capitalize on distressed pricing of certain assets in the marketplace, which may include our own securities."

Alesco is a specialty finance real estate investment trust based in Philadelphia.

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