Company: LGN
Filing Date: 2025-09-02
Form Type: S-1/A
Source: 0001193125-25-193346
Chunk: 351

Company: Legence Corp.
Filing Date: 2025-09-02
Form: S-1/A
Chunk 351
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 reflect an income approach based on the terms of the interest rate swap contracts and inputs corroborated by observable market data, including interest rate curves. Financial Instruments Not Carried at Fair Value:The table below shows the fair value and carrying value of the term loan and promissory notes (a component of notes payable) included in Total debt as shown in “ Note 7—Debt” (in thousands):

|                  |     |            | June 30, 2025 |     |                |           |     |            | December 31, 2024 |     |                |           |
|:-----------------|:----|:-----------|--------------:|:----|:---------------|----------:|:----|:-----------|------------------:|:----|:---------------|----------:|
|                  |     | Fair Value |               |     | Carrying Value |           |     | Fair Value |                   |     | Carrying Value |           |
| Term loan        |     | $          |     1,585,138 |     | $              | 1,569,948 |     | $          |         1,597,825 |     | $              | 1,576,502 |
| Promissory notes |     | $          |        19,285 |     | $              |    21,608 |     | $          |            19,475 |     | $              |    22,646 |

The fair value of the term loan as of June 30, 2025 and December 31, 2024 was derived by taking the mid-pointof the trading prices from observable market inputs in the secondary bond market for the term loan (Level 2 measurement) and multiplying it by the outstanding face value of the term loan. The fair value of the promissory notes as of June 30, 2025 and December 31, 2024 was calculated using a discounted cash flow methodology under the income approach, using interest rate indices, risk premiums, and adjustments for the size and subordination of the instrument (Level 3 measurement). The carrying value of the remaining notes payable and finance lease liabilities approximates fair value as of June 30, 2025 and December 31, 2024. Note 9—Derivatives I nterest Rate Swaps:The Company has multiple interest rate swap agreements designated as cash flow hedges. The Company utilizes these interest rate swap agreements to reduce exposure to fluctuations in variable interest rates for