Company: LGN
Filing Date: 2025-04-30
Form Type: DRS/A
Source: 0000950123-25-003868
Chunk: 293

Company: Legence Corp.
Filing Date: 2025-04-30
Form: DRS/A
Chunk 293
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 therefore, the Company is in compliance with the
financial covenant as of December 31, 2024.

Notes payable

As part of the consideration transferred to acquire certain companies described in “”, 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 the 2022 acquisition of Lord Green. As of December 31, 2024 and 2023, the outstanding
balance is $10.0 million and $9.5 million, respectively, and the carrying value is $9.3 million and $8.5 million, respectively, recorded in Long-term debt, net of current portion on the Consolidated Balance Sheets. The stated
interest rate is 5.5%. 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 the 2023 acquisition of San Jose Boiler and the 2022 acquisition of SC Engineers, and the
holders of the promissory notes were related parties as of December 31, 2024 and 2023. As of December 31, 2024 and 2023, the outstanding balance is $14.6 million and $13.8 million, respectively, and the carrying value is
$13.4 million and $12.3 million, respectively. As of December 31, 2024 and 2023, $11.8 million and $12.3 million, respectively, are recorded in Long-term debt, net of current portion on the Consolidated Balance Sheets. As of
December 31, 2024, $1.6 million is recorded in Current portion of long-term debt on the Consolidated Balance Sheets. No amount was included in Current portion of long-term debt as of December 31, 2023. The promissory notes have a
range of stated interest rates from 5.5 – 6% and maturities ranging from 2025 to 2028, at which time all principal and interest are due. The promissory note related to SC Engineers requires the Company to repay all principal and interest
earlier if the Company undergoes a change of control as defined in the note agreement.

The Company also financed certain insurance-related