Toronto’s Penfund, a provider of junior capital to mid-market companies, led a C$40 million financing of London, Ontario-based GoodLife Fitness Centers Inc., topping up the C$125 million subordinated secured credit facility provided to the company in 2011. Participating investors included Macquarie Bank Limited, Manulife Capital, GRI Investments, Canadian Medical Protective Association and Teachers’ Retirement Allowances Fund Board. Proceeds of the transaction will be used to finance GoodLife’s recent acquisition of Extreme Fitness Inc.
PENFUND LEADS $40 MILLION EXPANSION FINANCING FOR GOODLIFE FITNESS CENTRES INC.
TORONTO, Ontario (April 5, 2013) – Penfund, an independent provider of junior capital to middle market companies in North America, announced today 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.”
Founded in 1979, GoodLife Fitness is the largest fitness company in Canada. With over 300 clubs from coast-to-coast, over 12,600 Associates and more than 877,000 members, GoodLife is helping to transform the health and wellness of 1 in 39 Canadians every day. Motivated by GoodLife’s vision of giving every Canadian the opportunity to live a fit and healthy good life, David Patchell-Evans, Founder & CEO, strives to develop innovative partnerships and collaborations in all areas of health, fitness and wellness, as GoodLife continues to play a significant role in the healthcare system in Canada. GoodLife has achieved Platinum Status Canada’s 50 Best Managed Companies, as well as Platinum Level Canada’s 10 Most Admired Corporate Cultures.
Penfund is a leading Canadian private equity firm specializing in providing junior capital to middle market companies throughout North America. Penfund provides high yield and mezzanine debt, control and minority equity, as well as bridge facilities, standby lines, underwritten facilities and financial guarantees. The firm is owned by its management team and is currently investing its most recently established fund, Penfund Capital Fund IV which has $460 million of committed capital. Penfund manages institutional funds sourced from Canadian pension funds, insurance companies, family offices and banks and has invested more than $2.5 billion in over 220 companies since its establishment in 1979.
John Bradlow, Partner
(416) 645-3799; [email protected]
Krista Maling, Director of Public Relations
(519) 661-0190, Ext. 302; [email protected]
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