Company: LGN
Filing Date: 2025-09-02
Form Type: S-1/A
Source: 0001193125-25-193346
Chunk: 227

Company: Legence Corp.
Filing Date: 2025-09-02
Form: S-1/A
Chunk 227
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, asset sales and other forms of business combinations and certain changes to the composition of our board of directors) with respect to
any taxable periods ending on or after such early termination event, in each case, as a result of (i) our allocable share of existing tax basis acquired in connection with this offering and increases to such allocable share of existing tax
basis; (ii) our utilization of certain tax attributes of the Blocker Entities; (iii) Basis Adjustments; and (iv) certain additional tax benefits arising from payments made under the Tax Receivable Agreement. We will retain the benefit
of the remaining 15% of these cash savings, if any. If the Tax Receivable Agreement terminates early, we could be required to make a substantial, immediate lump-sum payment. Assuming no material changes in the
relevant tax law, we expect that if we experienced a change of control or the Tax Receivable Agreement were terminated immediately after this offering, the estimated lump-sum payment to the initial TRA Members would be approximately
$250 million (calculated using a discount rate equal to a per annum rate of 536 basis points, applied against an undiscounted liability of approximately $374 million). We may need to cause Legence Holdings to incur debt and make
distributions to the holders of LGN Units, including us and the Pubco Subsidiaries, to finance payments under the Tax Receivable Agreement to the extent our cash resources are insufficient to meet our obligations under the Tax Receivable Agreement
as a result of timing discrepancies or otherwise.

Directed Share Program

At our request, the underwriters have reserved up to 5% of the shares of Class A Common Stock offered by this prospectus for sale, excluding
the additional shares that the underwriters have an option to purchase within 30 days from the date of this prospectus, at the initial public offering price, to certain of our directors and officers and certain other parties related to us through a
directed share program. The number of shares of our Class A Common Stock available for sale to the general public will be reduced to the extent these individuals purchase such reserved shares. Any reserved shares that are not so purchased will be
offered by the underwriters to the general public on the same basis as the other shares offered by this prospectus. Participants in the directed share program will not be subject to the terms of any lock-up agreement with respect to any shares
purchased through the directed share program, except in the case of shares purchased by any of our