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

The principal amount of the Company’s outstanding debt totaled approximately $873.6 million at March 31, 2016, of which approximately $835.9 million was fixed-rate debt and approximately $37.7 million was variable rate debt, including $23.0 million outstanding on the Company's unsecured revolving credit facility. The carrying value of the properties collateralizing the notes payable totaled approximately $852.2 million as of March 31, 2016.

At March 31, 2016, 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, 2016, based on the value of the Company’s unencumbered properties, approximately $251.6 million was available under the line, $23.0 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, 2016, the margin was 145 basis points.

At March 31, 2016, the Company had a $71.6 million construction-to-permanent loan, with $54.6 million outstanding, which is secured by and used to partially finance the construction of Park Van Ness.

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 $14.7 million outstanding at March 31, 2016) 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, 2015, the principal amount of the Company’s outstanding debt totaled approximately $875.2 million, of which $832.4 million was fixed rate debt and $42.8 million was variable rate debt, including $28.0 million outstanding on the Company’s unsecured revolving credit facility. The carrying value of the properties collateralizing the notes payable totaled $856.8 million as of December 31, 2015.

At March 31, 2016, 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, 2016	$	—		$	18,607	$	18,607
2017	14,442			25,768		40,210
2018	50,748		(a)	25,902		76,650
2019	60,794			24,614		85,408
2020	61,163			21,892		83,055
2021	11,011			21,405		32,416
Thereafter	430,930			106,296		537,226
Principal amount	$	629,088		$	244,484	873,572
Unamortized deferred debt costs						8,381
Net						$	865,191

(a) Includes $23.0 million outstanding under the line of credit.

Interest expense and amortization of deferred debt costs for the three months ended March 31, 2016 and 2015, were as follows:



	Three Months Ended March 31,
(In thousands)	2016			2015
Interest incurred	$	11,677		$	11,384
Amortization of deferred debt costs	332			362
Capitalized interest	(920		)	(340		)
	$	11,089		$	11,406