Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 186

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 186
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 or indirectly owns all of the outstanding membership interests in the operating subsidiaries through which we
operate our assets. After the consummation of the transactions contemplated by this prospectus, Legence will be the managing member of Legence Holdings and will control and be responsible for all operational, management and administrative decisions
relating to Legence Holdings’ business, will consolidate the financial results of Legence Holdings and its subsidiaries and will report non-controlling interests in its consolidated financial statements
related to the LGN Units that the LGN Unit Holders will own in Legence Holdings.

This offering is being conducted through what is
commonly referred to as an “UP-C” structure, which is often used by partnerships and limited liability companies undertaking an initial public offering. The
UP-C structure provides the LGN Unit Holders with the tax advantage of continuing to own interests in a pass-through structure, which is tax efficient because their allocable shares of income from Legence
Holdings will not be subject to entity-level tax. The UP-C structure will also provide potential future tax benefits for both the public company and the LGN Unit Holders when they ultimately exchange their
pass-through interests for shares of Class A Common Stock, which is expected to result in tax basis adjustments in the assets of Legence Holdings and produce favorable tax attributes for us. See “—Holding Company Structure” and
“Certain Relationships and Related Party Transactions—Tax Receivable Agreement.”

In connection with this offering:
(a) Legence Parent formed Legence; (b) the ownership interests in Legence Holdings will be recapitalized into a single class of common equity limited liability company units (defined herein as LGN Units); (c) Legence Intermediate will
distribute a portion of its interests in Legence Holdings to Legence Parent, which will in turn distribute such interests to certain of the Existing Owners; (d) such Existing Owners will contribute all of, and Legence Intermediate will
contribute a portion of, their interests in Legence Holdings directly, or indirectly by contribution of interests in Blocker Entities holding interests in Legence Holdings, to Legence in exchange for newly issued Class A Common Stock;
(e) such Existing Owners will contribute such Class A Common Stock received to Legence Investment Aggregator II, and Legence Intermediate will liquidate and distribute such Class A Common Stock and its remaining interests in Legence
Holdings to Legence Parent; (f) Legence Parent will subscribe for newly issued Class B Common Stock from Legence in exchange for nominal