Company: LGN
Filing Date: 2025-11-03
Form Type: DRS
Source: 0001193125-25-262782
Chunk: 324

Company: Legence Corp.
Filing Date: 2025-11-03
Form: DRS
Chunk 324
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 Since August 5, 2021, the facility size has been $90.0 million and the Net Leverage Ratio has not been required to be tested, therefore, the Company is in compliance
with the financial covenant as of June 30, 2025.

Notes payable

As part of the consideration transferred to acquire certain companies, the Company issued notes payable to former owners of acquired companies.
The former owners are considered related parties when they are employees or Parent interests holders. The Company can prepay these notes without penalty.

The Company issued a promissory note payable in connection with a 2022 acquisition. As of June 30, 2025 and December 31, 2024, the
outstanding balance was $10.3 million and $10.0 million, respectively and the carrying value was $9.7 million and $9.3 million, respectively, recorded in Long-term debt, net of current portion on the Condensed Consolidated
Balance Sheets. The stated interest rate is 5.50%. All principal and interest are due at the earlier of the end of the 5-year term in 2027 or upon a sale event as defined in the note agreement.

The Company issued promissory notes payable in connection with a 2023 acquisition and a 2022 acquisition, and the holders of the promissory
notes were related parties as of June 30, 2025 and December 31, 2024. As of June 30, 2025 and December 31, 2024, the outstanding balance was $13.0 million and $14.6 million, respectively, and the carrying value was
$11.9 million and $13.4 million, respectively. As of June 30, 2025, $11.9 million was recorded in Long-term debt, net of current portion on the Condensed Consolidated Balance Sheet. As of December 31, 2024,
$11.8 million was recorded in Long-term debt, net of current portion and $1.6 million was recorded in Current portion of long-term debt on the Condensed Consolidated Balance Sheet. The $1.6 million was paid during the six months ended
June 30, 2025. The remaining promissory notes have a range of stated interest rates from 5.50—6.00% and maturities ranging from 2026—2028, at which time all principal and interest are due. The promissory