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

The Company’s outstanding debt totaled approximately $826.2 million at June 30, 2013, of which approximately $795.8 million was fixed-rate debt and approximately $30.4 million was variable rate debt. The carrying value of the properties collateralizing the mortgage notes payable totaled $911.1 million as of June 30, 2013.

At June 30, 2013, the Company had a $175.0 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 May 20, 2016, 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 June 30, 2013, based on the value of the Company’s unencumbered properties, approximately $166.7 million was available under the line, no borrowings were outstanding and approximately $404,000 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 160 basis points to 250 basis points. As of June 30, 2013, the margin was 190 basis points.

Saul Centers is a guarantor of the revolving credit facility, of which the Operating Partnership is the borrower. Saul Centers is also the guarantor of 50% of each of the Northrock bank loan (approximately $7.5 million of the $14.9 million outstanding at June 30, 2013) and the Metro Pike Center bank loan (approximately $7.8 million of the $15.5 million outstanding at June 30, 2013). The fixed-rate notes payable are all non-recourse debt except for $27.6 million of the Clarendon Center mortgage, which will be eliminated upon the achievement of certain leasing and debt service covenants which are guaranteed by Saul Centers.

On February 27, 2013, the Company closed on a three-year $15.6 million mortgage loan secured by Metro Pike Center. The loan matures in 2016, bears interest at a variable rate equal to the sum of one-month LIBOR and 165 basis points, requires monthly principal and interest payments based on a 25-year amortization schedule and requires a final payment of $14.7 million at maturity. The loan may be extended for up to two years. Proceeds were used to pay-off the $15.9 million remaining balance of existing debt secured by Metro Pike Center, and to extinguish the related swap agreement, both of which were scheduled to mature in June 2013.

On February 27, 2013, the Company closed on a three-year $15.0 million mortgage loan secured by Northrock. The loan matures in 2016, bears interest at a variable rate equal to the sum of one-month LIBOR and 165 basis points, requires monthly principal and interest payments based on a 25-year amortization schedule and requires a final payment of $14.2 million at maturity. The loan may be extended for up to two years. Proceeds were used to pay-off the $15.0 million remaining balance of existing debt secured by Northrock, which was scheduled to mature in May 2013.

On March 19, 2013, the Company closed on a 15-year, non-recourse $18.0 million mortgage loan secured by Hampshire Langley. The loan matures in 2028, bears interest at a fixed rate of 4.04%, requires monthly principal and interest payments totaling $95,400 based on a 25-year amortization schedule and requires a final payment of $9.5 million at maturity.

On April 10, 2013, the Company paid in full the $6.9 million remaining balance on the mortgage loan secured by Cruse Marketplace.

On May 28, 2013, the Company closed on a 15-year, non-recourse $35.0 million mortgage loan secured by Beacon Center. The loan matures in 2028, bears interest at a fixed rate of 3.51%, requires monthly principal and interest payments totaling $203,200 based on a 20-year amortization schedule and requires a final payment of $11.3 million at maturity.

At December 31, 2012, the Company’s outstanding debt totaled approximately $827.8 million, of which $774.8 million was fixed rate debt and $53.0 million was variable rate debt, including $38.0 million outstanding on the Company’s unsecured revolving credit facility. The carrying value of the properties collateralizing the mortgage notes payable totaled $916.1 million as of December 31, 2012.

At June 30, 2013, 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, 2013	$	—	$	10,661	$	10,661
2014		13,218		21,929		35,147
2015		15,077		22,558		37,635
2016		28,916		22,991		51,907
2017		—		24,193		24,193
2018		27,872		24,189		52,061
Thereafter		465,825		148,795		614,620

	$	550,908	$	275,316	$	826,224

Interest expense and amortization of deferred debt costs for the three and six months ended June 30, 2013 and 2012, were as follows:


	Three months ended June 30,						Six months ended June 30,
(In thousands)	2013			2012			2013			2012
Interest incurred	$	11,429		$	12,064		$	22,835		$	24,392
Amortization of deferred debt costs		314			494			625			899
Capitalized interest		(34	)		(4	)		(34	)		(4	)

	$	11,709		$	12,554		$	23,426		$	25,287