Penfund, an independent provider of junior capital to middle market companies in North America, announced the completion of a $40 million expansion of the existing $125 million subordinated secured credit facility provided to GoodLife Fitness Centres Inc. by a group of lenders in March 2011.

The proceeds of the expansion financing will be used by GoodLife to finance the acquisition of 13 fitness clubs in the Greater Toronto Area previously owned by Extreme Fitness Inc. and to finance other growth initiatives. Including the Extreme clubs, GoodLife now operates over 300 fitness clubs in Canada and is Canada's largest fitness company. GoodLife is also the fifth largest operator of fitness clubs in the world.

Penfund acted as agent and lead investor in the $40 million expansion financing. The remaining funds were provided by Macquarie Bank Limited, Manulife Capital, GRI Investments, The Canadian Medical Protective Association and the Teachers' Retirement Allowances Fund Board.

According to John Bradlow, a partner of Penfund, "Penfund and its lending partners are delighted to continue supporting GoodLife's remarkable growth story. We view GoodLife as demonstrable evidence of Canadian entrepreneurial success, achieved by a dynamic leader and a highly accomplished management team."

According to David Patchell-Evans, GoodLife's founder and CEO, "We greatly appreciate the continuing support of Penfund and our other lenders. The $40 million expansion financing is the fourth in a series of financings provided and arranged by Penfund. The patient, long-term capital provided by our lenders has allowed us to accelerate our growth and to continue to pursue our vision of giving every Canadian the opportunity to live a fit and healthy good life."