Nortech Systems Secures Covenant Waiver, Amends Bank of America Credit Agreement
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Nortech Systems has secured a waiver and amendment to its credit agreement with Bank of America, preventing a default on financial covenants for the quarter ended December 31, 2025, including leverage ratio, fixed charge coverage, and EBITDA. While the waiver mitigates immediate financial risk, the amendment also revises borrowing base mechanics, adjusts revolving commitment levels, and raises the applicable borrowing rate, indicating less favorable terms. The company is also negotiating a new asset-backed lending facility, suggesting ongoing efforts to stabilize its financial position. This event is critical for NSYS, highlighting underlying financial pressures while providing a temporary reprieve from default.
At the time of this announcement, NSYS was trading at $9.41 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $26.2M. The 52-week trading range was $6.50 to $12.40. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Wiseek News.