Nortech Systems Extends its Bank of America Credit Facility Until June 2026

Rhea-AI Summary

Nortech Systems Incorporated (NASDAQ: NSYS) has announced a sixth amendment to its Credit Facility with Bank of America on December 31, 2021. The original agreement, established on June 15, 2017, was set to expire on June 15, 2022, but has now been extended by four years to June 15, 2026. The company utilizes a $16 million asset-based lending facility to finance working capital, supporting its operations in manufacturing and engineering for medical, industrial, and defense sectors.

Positive

• Extension of Credit Facility maturity date to June 15, 2026.
• Access to $16 million asset-based lending facility enhances working capital.

Negative

• None.

MINNEAPOLIS--(BUSINESS WIRE)-- Nortech Systems Incorporated (Nasdaq: NSYS) (the “Company”) today is announcing that on December 31, 2021, the Company executed a sixth amendment to its Bank of America (“BOA”) Loan and Security Agreement (“Credit Facility”). Nortech entered into the original agreement on June 15, 2017 and it was set to expire on June 15, 2022. Nortech and BOA have agreed to renew the Credit Facility and extend the maturity date four years until June 15, 2026. Under the Credit Facility, Nortech utilizes a $16 million asset-based lending facility (“Revolver”) to finance working capital.

Nortech, in partnership with our medical, industrial and defense customers, uses intelligence, innovation, speed and global expertise to provide manufacturing and engineering solutions. This enables our customers to be leaders in digital connectivity and data management to achieve their business goals. Nortech strives to be a premier workplace that fosters valued relationships internally and in our communities.

About Nortech Systems Incorporated Nortech Systems, Incorporated is a leading provider of design and manufacturing solutions for complex electromedical devices, electromechanical systems, assemblies, and components. Nortech Systems primarily serves the medical, aerospace & defense, and industrial markets. Its design services span concept development to commercial design, and include medical device, software, electrical, mechanical, and biomedical engineering. Its manufacturing and supply chain capabilities are vertically integrated around wire/cable/interconnect assemblies, printed circuit board assemblies, as well as system-level assembly, integration, and final test. Headquartered in Maple Grove, Minn., Nortech currently has seven manufacturing locations and design centers across the U.S., Latin America, and Asia. Nortech Systems is traded on the NASDAQ Stock Market under the symbol NSYS. Nortech’s website is www.nortechsys.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220105005302/en/

Chris Jones, CFO

cjones@nortechsys.com

952-345-2244

Source: Nortech Systems Incorporated

FAQ

What did Nortech Systems announce on December 31, 2021?

Nortech Systems announced a sixth amendment to its Credit Facility with Bank of America, extending the maturity date to June 15, 2026.

What is the significance of the Credit Facility for NSYS?

The Credit Facility allows Nortech Systems to access a $16 million asset-based lending facility to finance working capital, crucial for their operational flexibility.

When was the original Credit Facility agreement established for NSYS?

The original Credit Facility agreement for Nortech Systems was established on June 15, 2017.