---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-26-009029"
form_type: "8-K"
ticker: "NSYS"
cik: "0000722313"
company_name: "NORTECH SYSTEMS INC"
filed_at: "2026-03-06T23:59:59+00:00"
generated_at: "2026-05-15T19:11:16.621030+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

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

## Summary
- 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.

## SEC filing metadata
- accession: 0001493152-26-009029
- form_type: 8-K
- ticker: NSYS
- cik: 0000722313
- company_name: NORTECH SYSTEMS INC
- filed_at: 2026-03-06T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 1.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/722313/000149315226009029/0001493152-26-009029-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/722313/000149315226009029/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-26-009029
- JSON: https://secwatch.observer/filing/0001493152-26-009029.json
- Plain text: https://secwatch.observer/filing/0001493152-26-009029.txt

## Key facts
- Material Agreements
  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
  source text: 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”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/722313/000149315226009029/0001493152-26-009029-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.