Wesley Enhanced Living, which operates six retirement communities in the Philadelphia region, plans to spend $15 million on renovations at what it calls its Main Line campus, which was formerly known as Martins Run, according to a bond prospectus.
The money will be spent on wide-ranging upgrades to the nursing facility, public spaces in the personal-care unit, independent-living apartments, the dining room, and other areas. The renovations are expected to take from 18 to 24 months.
In all, Wesley plans to borrow $126.6 million, with more than half being used to repay existing debt. The debt offering received a below-investment-grade "BB" rating from Fitch.
Wesley Enhanced Living, which traces its roots to 1888 in Northeast Philadelphia, acquired in March 2015 the former Martins Run facility, which was founded in 1978. Wesley's chief executive Jeff Petty said it took time to turnaround the occupancy trend at the facility, "but we have gained the confidence that we are on the path now."
Petty also said Wesley has surpassed its cost-saving targets at the facility, which has 163 independent-living units, 30 personal-care beds, and 60 skilled-nursing beds.