Nortech Systems obtains waiver for Q4 2025 covenant breaches; revises credit facility terms

NORTECH SYSTEMS INC

Bank of America waived defaults on leverage, fixed charge, and EBITDA covenants for Q4 2025.
New minimum EBITDA targets: $680K for Q1 2026 and $1.559M for Q2 2026.
Revolving commitment reduces from $15M to $12M on April 1, 2026; borrowing base now 80% of eligible assets.
Interest rate increased to SOFR + 3.50%; excess cash above $1.8M must prepay loans.
Foreign subsidiary investments capped at $150K; company negotiating new asset-based facility.

item 1.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

NORTECH SYSTEMS INC amended Waiver and Amendment No. 4 with Bank of America, N.A. (effective 2026-02-27).

Action: amendment
Agreement: credit facility
Counterparty: Bank of America, N.A.
Effective: 2026-02-27

Exact text from the filing

On February 27, 2026, Nortech Systems Incorporated (the “Company”) entered into a Waiver and Amendment No. 4 to its Credit Agreement with Bank of America, N.A., dated February 27, 2026 (“Waiver and Amendment”).

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NORTECH SYSTEMS INC filing history →

Source: SEC EDGAR

accession 0001493152-26-009029

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