Angelo, Gordon & Co.’s Net Lease Group Completes Net Lease Transaction with Friendly’s for $6.4 Million

NEW YORK--(EON:Enhanced Online News)--Angelo, Gordon & Co.'s ("Angelo Gordon") dedicated Net Lease Group ("AG Net Lease") announced today the completion of a net lease transaction with Friendly Ice Cream Corporation ("Friendly's") whereby AG Net Lease acquired the land and building in which Friendly’s currently operates and leases its mid-Atlantic regional distribution center for $6.4 million.

“We are delighted to have worked with Friendly’s on this net lease transaction. We believe Friendly’s is at an inflection point as it assesses its strategic direction and invests in growth. We want to support Friendly’s in the endeavor over the long-term.”

Founded in 1935, Friendly’s is a vertically integrated restaurant company serving signature sandwiches, entrees and ice cream desserts in a friendly, family environment in over 510 company and franchised restaurants throughout the Northeast. The Company also manufactures ice cream, which is distributed through more than 4,000 supermarkets and other retail locations. The approximately 85,000 square feet York, PA refrigerated warehouse facility serves the mid-Atlantic region for Friendly’s Restaurants.

Gordon J. Whiting, Managing Director and Senior Portfolio Manager of AG Net Lease, commented, “We are delighted to have worked with Friendly’s on this net lease transaction. We believe Friendly’s is at an inflection point as it assesses its strategic direction and invests in growth. We want to support Friendly’s in the endeavor over the long-term.”

Michael St. Marie, Vice President, Production & Distribution Operations at Friendly’s, said, “AG Net Lease provided a creative source of financing for Friendly’s which helped to rationalize our rent expense and deliver net proceeds to the company.”

About Angelo, Gordon & Co. and AG Net Lease

Angelo, Gordon & Co. was founded in 1988 and with its affiliates has approximately $14 billion under management. Currently, the firm’s investment disciplines encompass four principal areas: (i) distressed debt and leveraged loans, ii) real estate, (iii) private equity and special situations and (iv) a number of hedge fund strategies. Angelo, Gordon & Co. employs over 70 investment professionals and is headquartered in New York, with associated offices in Los Angeles, Chicago, London, Hong Kong and Seoul.

AG Net Lease is comprised of a team of experienced professionals committed to providing sale-leaseback financing to financial sponsors and below investment grade companies across a range of industries. AG Net Lease is currently investing its first dedicated net lease fund which closed earlier this year and will seek to purchase as much as $500 million of net leased corporate real estate in the U.S. and abroad with transactions ranging from $5 million to $200 million. AG Net Lease’s unparalleled credit and real estate underwriting expertise, coupled with its unique funding platform, ensures highly competitive pricing and speed of execution to tenants and sponsors. Additional information on AG Net Lease can be found at www.angelogordon.com/netlease

About Friendly’s

Friendly Ice Cream Corporation (Amex: FRN) is a vertically integrated restaurant company serving signature sandwiches, entrees and ice cream desserts in a friendly, family environment in more than 510 company and franchised restaurants throughout the Northeast. The company also manufactures ice cream, which is distributed through more than 4,000 supermarkets and other retail locations. With a 71-year operating history, Friendly's enjoys strong brand recognition and is currently revitalizing its restaurants and introducing new products to grow its customer base. Additional information on Friendly Ice Cream Corporation can be found at www.friendlys.com.

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