Company: LGN
Filing Date: 2025-04-30
Form Type: DRS/A
Source: 0000950123-25-003868
Chunk: 209

Company: Legence Corp.
Filing Date: 2025-04-30
Form: DRS/A
Chunk 209
---
 by contrast, hold their equity ownership in the form of shares of Class A Common Stock in us, a corporation for U.S. federal income tax purposes. The LGN Unit Holders will generally incur U.S. federal, state and
local income taxes on their proportionate share of any taxable income of Legence Holdings.

In addition, pursuant to our amended and
restated certificate of incorporation and the Legence Holdings LLC Agreement, our capital structure and the capital structure of Legence Holdings will generally replicate one another and will provide for customary antidilution mechanisms in order to
maintain the one-for-one exchange ratio between the LGN Units (and a corresponding number of shares of Class B Common Stock) and our Class A Common Stock,
among other things.

We and the LGN Unit Holders will generally incur U.S. federal, state and local income taxes on our proportionate
share of any taxable income of Legence Holdings and will be allocated our proportionate share of any taxable loss of Legence Holdings. The Legence Holdings LLC Agreement will provide, to the extent cash is available, for distributions pro rata to us
and the LGN Unit Holders in an amount at least sufficient to allow us to pay our taxes and make payments under the Tax Receivable Agreement.

139

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section 200.83

CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

Corporate Reorganization

In connection
with our Corporate Reorganization, we will engage in transactions with certain affiliates and our existing equity holders. “Corporate Reorganization” contains a description of these transactions.

Transactions with Entities Associated with Legence Holdings and Blackstone Fund

Legence Holdings had related-party revenue from certain unconsolidated joint ventures of $5.7 million for the year ended December 31, 2024.
Additionally, during the years ended December 31, 2023 and 2022, Legence Holdings had revenue of $3.0 million and $6.0 million, respectively, related to contracts with entities associated with Legence Holdings and the Blackstone Fund. In connection
with certain business acquisitions, a portion of the contingent consideration was transferred to certain sellers who became members of management of the Company. See “Note 4—Acquisitions” and “Note 10—Fair Value
Measurements” in the Notes to Consolidated Financial Statements for additional information about the contingent consideration.

In
addition, we lease real