NSYS · Nortech Systems Incorporated

Summary

Nortech Systems Incorporated entered into a new Credit and Security Agreement with Associated Bank, National Association on March 20, 2026, providing a revolving credit facility of up to $15,000,000 subject to a borrowing base and a $2,200,000 term loan, replacing its existing credit facility maturing in August 2026. The facility matures in March 2029, is secured by substantially all U.S. assets, and includes financial covenants such as a Fixed Charge Coverage Ratio of 1.10 to 1.00.

Key takeaways

• Entered Credit and Security Agreement on March 20, 2026 with Associated Bank
• Revolving credit facility up to $15,000,000 based on eligible accounts receivable, inventory, and fixed assets
• $2,200,000 term loan
• Sublimit of $1,500,000 for letters of credit
• Matures March 2029, replaces facility maturing August 2026
• Interest at one-month or three-month Term SOFR plus 2.00% for revolver and 2.25% for term loan, or base rate
• Fixed Charge Coverage Ratio covenant of 1.10 to 1.00
• Secured by substantially all U.S. assets