Nortech Systems Incorporated filed SEC Form 8-K: Entry into a Material Definitive Agreement, Financial Statements and Exhibits
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ITEM 1.01 Entry into a Material Definitive Agreement
On March 20, 2026, we entered into a new Credit and Security Agreement with Associated Bank, National Association, which provides for a revolving credit facility of up to $15,000,000, subject to a borrowing base based on eligible accounts receivable, inventory and fixed assets, and a $2,200,000 term loan (the “Associated Facility”). The new Associated Facility replaces our existing credit facility, which was scheduled to mature in August 2026. The Associated Facility includes a sublimit of $1,500,000 for letters of credit and is secured by substantially all of our assets in the United States of America, and the facility and term loan each mature in March 2029. Borrowings under the Associated Facility bear interest, at our option, at a defined base rate, or at one-month or three-month Term Secured Overnight Financing Rate, plus 2.00% in the case of revolving credit borrowings and plus 2.25% in the case of the term loan.
The Associated Facility contains customary affirmative and negative covenants that restrict or limit our ability to incur additional indebtedness, create liens, make investments, sell assets, pay dividends or engage in certain transactions without lender consent. This agreement also requires us to comply with financial covenants, including maintaining a Fixed Charge Coverage Ratio of 1.10 to 1.00, which measures the ratio of EBITDA, as defined to exclude certain other non-cash items, and less unfunded capital expenditures, to fixed charges such as interest as well as debt and capital lease principal payments. The Associated Facility contains a broad definition of events of default including non-compliance with the credit agreement, change of control of the company, destruction of collateral and if the company suffers a material adverse affect.
ITEM 9.01 Financial Statements and Exhibits.
Exhibits.
| Exhibit No. | Description | |
| 10.1 | Credit Agreement dated as of March 20, 2026, by and between Nortech Systems Incorporated and Associated Bank, National Association. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRLdocument). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: March 23, 2026
| Nortech Systems Incorporated | |
| (Registrant) | |
| /s/ Andrew D. C. LaFrence | |
|
Andrew D. C. LaFrence Senior Vice President of Finance and Chief Financial Officer |
EXHIBIT INDEX
| Exhibit No. | Description | |
| 10.1 | Credit Agreement dated as of March 20, 2026, by and between Nortech Systems Incorporated and Associated Bank, National Association. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRLdocument). |