NSYS NORTECH SYSTEMS INC
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Executive Summary
Nortech Systems Inc. secured a waiver from Bank of America for financial covenant defaults related to leverage, fixed charge coverage, and EBITDA for Q4 2025. The amendment reduces its revolving credit commitment from $15M to $12M starting April 1, 2026, increases borrowing rates, tightens covenants, and imposes stricter controls on cash and foreign subsidiary investments. The company disclosed it is negotiating a new asset-backed lending facility.
Actionable Insight
Monitor for signs of liquidity stress and whether the company secures a new lending facility. The reduced credit line and tighter covenants increase bankruptcy risk if operational performance doesn't improve. Short opportunity if new financing isn't secured.
Key Facts
- Company waived for covenant defaults on leverage, fixed charge coverage, and EBITDA for Q4 2025
- Revolving credit commitment reduced from $15M to $12M effective April 1, 2026
- Outstanding revolving loan balance: $9.1 million as of February 24, 2026
- Applicable interest rates increased to 2.50% for Base Rate Loans and 3.50% for Term SOFR Loans
- New requirement to prepay loans if cash exceeds $1.8 million
- Company is actively negotiating a new asset-backed lending facility
Financial Impact
Revolving commitment reduced by $3M (20%), interest rates increased by unspecified amount, mandatory prepayments triggered when cash exceeds $1.8M
Risk Factors
- Inability to secure new asset-backed lending facility
- Further covenant breaches if EBITDA does not improve
- Reduced liquidity limiting operational flexibility
- Potential for additional credit downgrades or lending restrictions
Market Snapshot
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-009029 |
| Document: form8-k.htm | 0001493152-26-009029 |
| Document: 0001493152-26-009029-index-headers.html | 0001493152-26-009029 |
| Document: 0001493152-26-009029-index.html | 0001493152-26-009029 |
| Document: 0001493152-26-009029.txt | 0001493152-26-009029 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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May 13, 2026
27d ago
|
Press Release
| $12.11 $12.23 | ▲ +0.99% | ▲ +1.71% | $16.30 (+34.60%) |
|
May 6, 2026
4w ago
|
Press Release
| $12.52 $13.96 | ▲ +11.50% | ▲ +10.00% | $16.30 (+30.19%) |
|
Apr 15, 2026
7w ago
|
10-K/A
| $14.36 $15.38 | ▲ +7.10% | ▲ +6.12% | $16.30 (+13.51%) |
|
Apr 1, 2026
9w ago
|
DEFA14A
| $12.92 $13.78 | ▲ +6.66% | ▲ +3.04% | $16.30 (+26.16%) |
|
Mar 26, 2026
10w ago
|
Press Release
| $11.83 $13.15 | ▲ +11.16% | ▲ +7.30% | $16.30 (+37.79%) |
|
Mar 23, 2026
11w ago
|
Press Release
| $10.33 $12.19 | ▲ +18.01% | ▲ +18.43% | $16.30 (+57.79%) |
|
Mar 6, 2026
13w ago
|
8-K
| $9.20 $9.20 | · 0.00% | ▼ −1.53% | $16.30 (−77.17%) |
US Market Status
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