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Notes Payable, Bank Credit Facility, Interest and Amortization of Deferred Debt Costs
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Notes Payable, Bank Credit Facility, Interest and Amortization of Deferred Debt Costs Notes Payable, Bank Credit Facility, Interest and Amortization of Deferred Debt Costs
At June 30, 2022, the Company had a $525.0 million senior unsecured credit facility (the “Credit Facility”) comprised of a $425.0 million revolving credit facility and a $100.0 million term loan. The revolving credit facility matures on August 29, 2025, which may be extended by the Company for one additional year, subject to satisfaction of certain conditions. The term loan matures on February 26, 2027, and may not be extended. Interest accrues at a rate of LIBOR plus an applicable spread which is determined by certain leverage tests. As of June 30, 2022, the applicable spread for borrowings was 135 basis points related to the revolving credit facility and 130 basis points related to the term loan. Letters of credit may be issued under the Credit Facility. On June 30, 2022, based on the value of the Company’s unencumbered properties, approximately $200.4 million was available under the Credit Facility, $280.0 million was outstanding and approximately $185,000 was committed for letters of credit.
On February 23, 2022, the Company closed on a $133.0 million construction-to-permanent loan, the proceeds of which will be used to partially fund Hampden House. The loan matures in 2040, bears interest at a fixed rate of 3.90%, and requires interest only payments, which will be funded by the loan, until conversion to permanent. The conversion is expected in the first
quarter of 2026, and thereafter, monthly principal and interest payments based on a 25-year amortization schedule will be required.
On March 11, 2022, the Company repaid in full the remaining principal balance of $28.3 million of the mortgage loan secured by Lansdowne Town Center, which was scheduled to mature in June 2022.
On June 7, 2022, the Company repaid in full the remaining principal balance of $8.6 million of the mortgage loan secured by Orchard Park, which was scheduled to mature in September 2022.
Saul Centers and certain consolidated subsidiaries of the Operating Partnership have guaranteed the payment obligations of the Operating Partnership under the Credit Facility. The Operating Partnership is the guarantor of (a) a portion of the Broadlands mortgage (approximately $3.7 million of the $29.3 million outstanding balance at June 30, 2022), (b) a portion of the Avenel Business Park mortgage (approximately $6.3 million of the $23.5 million outstanding balance at June 30, 2022), (c) a portion of The Waycroft mortgage (approximately $23.6 million of the $154.4 million outstanding balance at June 30, 2022), (d) the Ashbrook Marketplace mortgage (totaling $21.1 million at June 30, 2022), and (e) the mortgage secured by Kentlands Place, Kentlands Square I and Kentlands Pad (totaling $28.6 million at June 30, 2022). All other notes payable are non-recourse.
The principal amount of the Company’s outstanding debt totaled approximately $1.2 billion at June 30, 2022, of which approximately $895.5 million was fixed-rate debt and approximately $280.0 million was variable rate debt outstanding under the Credit Facility. The carrying amount of the properties collateralizing the notes payable totaled approximately $1.1 billion as of June 30, 2022.
At December 31, 2021, the principal amount of the Company’s outstanding debt totaled approximately $1.2 billion, of which $949.0 million was fixed rate debt and $206.0 million was variable rate debt outstanding under the Credit Facility. The carrying amount of the properties collateralizing the notes payable totaled approximately $1.1 billion as of December 31, 2021.
At June 30, 2022, the scheduled maturities of debt, including scheduled principal amortization, for years ending December 31, were as follows:
(In thousands)Balloon
Payments		Scheduled
Principal
Amortization		Total
July 1 through December 31, 2022$— $17,004 $17,004 
20239,225 35,080 44,305 
202466,164 34,661 100,825 
2025200,363 (a)31,814 232,177 
2026134,088 28,474 162,562 
2027142,028 (b)22,052 164,080 
Thereafter339,177 115,367 454,544 
Principal amount$891,045 $284,452 1,175,497 
Unamortized deferred debt costs10,232 
Net$1,165,265 

(a) Includes $180.0 million outstanding under the Credit Facility.
(b) Includes $100.0 million outstanding under the Credit Facility.

Deferred debt costs consist of fees and costs incurred to obtain long-term financing, construction financing and the Credit Facility. These fees and costs are being amortized on a straight-line basis over the terms of the respective loans or agreements, which approximates the effective interest method. Deferred debt costs totaled $10.2 million and $11.2 million, net of accumulated amortization of $7.9 million and $7.7 million, at June 30, 2022 and December 31, 2021, respectively, and are reflected as a reduction of the related debt in the Consolidated Balance Sheets.
Interest expense, net and amortization of deferred debt costs for the three and six months ended June 30, 2022 and 2021, were as follows:
 Three Months Ended June 30,Six Months Ended June 30,
(In thousands)2022202120222021
Interest incurred$12,468 $12,900 $24,781 $25,582 
Amortization of deferred debt costs465 406 941 811 
Capitalized interest(2,474)(1,647)(4,661)(2,742)
Interest expense10,459 11,659 21,061 23,651 
Less: Interest income2 2 2 5 
Interest expense, net and amortization of deferred debt costs$10,457 $11,657 $21,059 $23,646