secwatch.observer — SEC 8-K summary
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Issuer:     NORTECH SYSTEMS INC (NSYS)
CIK:        0000722313
Form:       8-K
Filed at:   2026-03-06T23:59:59+00:00
Accession:  0001493152-26-009029
Event type: debt
Sentiment:  negative
Materiality: 0.75
Item codes: 1.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/722313/000149315226009029/0001493152-26-009029-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/722313/000149315226009029/form8-k.htm
  HTML page:      https://secwatch.observer/filing/0001493152-26-009029

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