Company: LGN
Filing Date: 2025-04-30
Form Type: DRS/A
Source: 0000950123-25-003868
Chunk: 69

Company: Legence Corp.
Filing Date: 2025-04-30
Form: DRS/A
Chunk 69
---
 of such
additional indebtedness is subject to other customary conditions including, but not limited to, the absence of an event of default and certain maturity limitations.

With respect to the incurrence tests described above, as of December 31, 2024, we estimate that Legence Holdings and its subsidiaries would
have been able to incur (i) approximately $46.0 million of debt secured on a junior-priority basis to the obligations under the Credit Agreement and (ii) approximately $170.6 million of unsecured debt or debt that is not secured by any collateral
that secures the obligations under the Credit Agreement. Legence Holdings and its subsidiaries could also have incurred unlimited indebtedness in connection with a permitted acquisition or investment to the extent such transaction was
leverage-neutral.

In addition, the debt covenant under the Credit Agreement provides for additional exceptions that could permit an
unlimited amount of debt under certain circumstances, including in connection with non-speculative hedging agreements, certain acquisitions, indemnification obligations, purchase price adjustments, insurance premiums and certain other debt incurred
in the ordinary course of business or consistent with Legence Holdings’ past practice. If new indebtedness is added to Legence Holdings and its subsidiaries’ current debt levels, the related risks that we and they now face could intensify.
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Debt.”

Risks Related to Regulations

Our business and our clients’ businesses are subject to a variety of federal, state and local laws and regulations, which could adversely affect our business, financial condition and results of operations.

Federal, state and local laws and regulations affecting our clients, including, among other things, environmental, health and safety, and
permitting requirements, may have a material effect on our business. These regulations are complex and subject to change both in substance and interpretation, and often regulations across various industries and jurisdictions can differ or conflict,
all of which can negatively impact our or our clients’ ability to efficiently operate. Furthermore, certain regulatory requirements applicable to our clients are also required of us when we contract with such clients, and our inability to meet
those requirements could also result in decreased demand for our services. Increased and changing regulatory requirements applicable to us and our clients have resulted in, among other things, project delays for our services in the past, and may do
so in the future, which can adversely affect our business, financial condition and results of operations. Changes in law, regulations or requirements, or a