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

3 Months Ended

Mar. 31, 2020

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

The principal amount of the Company’s outstanding debt totaled approximately $1.1 billion at March 31, 2020, of which approximately $928.9 million was fixed-rate debt and approximately $199.5 million was variable rate debt outstanding under the credit facility. The carrying value of the properties collateralizing the notes payable totaled approximately $1.1 billion as of March 31, 2020.

At March 31, 2020, the Company had a $400.0 million credit facility comprised of a $325.0 million revolving facility and a $75.0 million term loan. As of March 31, 2020, the applicable spread for borrowings is 135 basis points under the revolving credit facility and 130 basis points under the term loan. Saul Centers and certain consolidated subsidiaries of the Operating Partnership have guaranteed the payment obligations of the Operating Partnership under the credit facility. Letters of credit may be issued under the revolving credit facility. As of March 31, 2020, based on the value of the Company’s unencumbered properties, approximately $200.3 million was available under the revolving credit facility, $124.5 million was outstanding and approximately $185,000 was committed for letters of credit.

On February 10, 2020, the Company repaid in full the remaining principal balance of $9.2 million of the mortgage loan secured by Boca Valley Plaza, which was scheduled to mature on May 10, 2020.

On March 3, 2020, the Company repaid in full the remaining principal balance of $7.1 million of the mortgage loan secured by Palm Springs Center, which was scheduled to mature on June 1, 2020.

Saul Centers is a guarantor of the credit facility, of which the Operating Partnership is the borrower. The Operating

Partnership is the guarantor of (a) a portion of the Park Van Ness mortgage (approximately $6.7 million of the $67.7 million outstanding balance at March 31, 2020, which guarantee will be reduced to (i) $3.3 million on October 1, 2020 and (ii) zero on October 1, 2021), (b) a portion of the Broadlands mortgage (approximately $3.9 million of the $31.0 million outstanding balance at March 31, 2020), and (c) a portion of the Avenel Business Park mortgage (approximately $6.3 million of the $26.0 million outstanding balance at March 31, 2020). All other notes payable are non-recourse. The guarantee on the Kentlands Square II mortgage loan was released on February 5, 2020.

At December 31, 2019, the principal amount of the Company’s outstanding debt totaled approximately $1.1 billion, of which $938.4 million was fixed rate debt and $162.5 million was variable rate debt, including $87.5 million outstanding under an unsecured revolving credit facility. The carrying value of the properties collateralizing the notes payable totaled approximately $1.1 billion as of December 31, 2019.

At March 31, 2020, 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, 2020	$	—		$	21,134	$	21,134
2021	11,012			29,025		40,037
2022	161,002		(a)	29,645		190,647
2023	84,225			30,065		114,290
2024	66,653			28,703		95,356
2025	20,363			26,291		46,654
Thereafter	520,796			99,518		620,314
Principal amount	$	864,051		$	264,381	1,128,432
Unamortized deferred debt costs						9,356
Net						$	1,119,076

(a) Includes $124.5 million outstanding under the revolving credit facility.

Deferred debt costs consist of fees and costs incurred to obtain long-term financing, construction financing and the term loan 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 $9.4 million and $9.7 million, net of accumulated amortization of $7.5 million and $7.5 million, at March 31, 2020 and December 31, 2019, 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 months ended March 31, 2020 and 2019, were as follows:



	Three Months Ended March 31,
(In thousands)	2020			2019
Interest incurred	$	13,019		$	12,881
Amortization of deferred debt costs	373			384
Capitalized interest	(3,768		)	(2,146		)
Interest expense	9,624			11,119
Less: Interest income	30			52
Interest expense, net and amortization of deferred debt costs	$	9,594		$	11,067