Notes Payable, Revolving Credit Facility, Interest and Amortization of Deferred Debt Costs

The principal amount of the Company’s outstanding debt totaled approximately $977.1 million at March 31, 2017, of which approximately $878.7 million was fixed-rate debt and approximately $98.4 million was variable rate debt, including

$84.0 million outstanding on the Company's unsecured revolving credit facility. The carrying value of the properties collateralizing the notes payable totaled approximately $1.0 billion as of March 31, 2017.

At March 31, 2017, the Company had a $275.0 million unsecured revolving credit facility, which can be used for working capital, property acquisitions, development projects or letters of credit. The revolving credit facility matures on June 23, 2018, and may be extended by the Company for one additional year subject to the Company’s satisfaction of certain conditions. Saul Centers and certain consolidated subsidiaries of the Operating Partnership have guaranteed the payment obligations of the Operating Partnership under the revolving credit facility. Letters of credit may be issued under the revolving credit facility. On March 31, 2017, based on the value of the Company’s unencumbered properties, approximately $190.6 million was available under the line, $84.0 million was outstanding and approximately $448,000 was committed for letters of credit. The interest rate under the facility is variable and equals the sum of one-month LIBOR and a margin that is based on the Company’s leverage ratio, and which can range from 145 basis points to 200 basis points. As of March 31, 2017, the margin was 145 basis points.

At March 31, 2017, the Company had a $71.6 million construction-to-permanent loan, with $71.0 million outstanding, which is secured by and used to partially finance the construction of Park Van Ness.

On January 18, 2017, the Company closed on a 15-year, non-recourse $40.0 million mortgage loan secured by Burtonsville Town Square. The loan matures in 2032, bears interest at a fixed rate of 3.39%, requires monthly principal and interest payments totaling $197,900 based on a 25-year amortization schedule and requires a final payment of $20.3 million at maturity.

Saul Centers is a guarantor of the revolving credit facility, of which the Operating Partnership is the borrower. The Operating Partnership is the guarantor of (a) a portion of the Metro Pike Center bank loan (approximately $7.8 million of the $14.4 million outstanding at March 31, 2017) and (b) the $71.6 million Park Van Ness construction-to-permanent loan, which guarantee will be reduced and eventually eliminated subject to the achievement of certain leasing and cash flow levels. The fixed-rate notes payable are all non-recourse.

At December 31, 2016, the principal amount of the Company’s outstanding debt totaled approximately $907.8 million, of which $844.3 million was fixed rate debt and $63.5 million was variable rate debt, including $49.0 million outstanding on the Company’s unsecured revolving credit facility. The carrying value of the properties collateralizing the notes payable totaled $957.2 million as of December 31, 2016.

At March 31, 2017, the scheduled maturities of debt, including scheduled principal amortization, for years ending December 31, were as follows:



(In thousands)	Balloon Payments			Scheduled Principal Amortization		Total
April 1 through December 31, 2017	$	—		$	20,710	$	20,710
2018	125,865		(a)	27,451		153,316
2019	60,793			26,139		86,932
2020	61,163			23,470		84,633
2021	11,012			23,037		34,049
2022	36,503			23,387		59,890
Thereafter	436,691			100,843		537,534
Principal amount	$	732,027		$	245,037	977,064
Unamortized deferred debt costs						7,426
Net						$	969,638

(a) Includes $84.0 million outstanding under the line of credit.

Interest expense and amortization of deferred debt costs for the three months ended March 31, 2017 and 2016, were as follows:



	Three Months Ended March 31,
(In thousands)	2017			2016
Interest incurred	$	12,288		$	11,677
Amortization of deferred debt costs	345			332
Capitalized interest	(769		)	(920		)
	$	11,864		$	11,089