Company: LGN
Filing Date: 2025-08-15
Form Type: S-1
Source: 0001193125-25-181698
Chunk: 216

Company: Legence Corp.
Filing Date: 2025-08-15
Form: S-1
Chunk 216
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 Company Structure

Our post-offering organizational structure will allow Legence Parent to retain its equity ownership in Legence Holdings, a partnership for U.S.
federal income tax purposes and, as such, generally will not be subject to any entity-level U.S. federal income tax. Instead, any taxable income of Legence Holdings will be allocated to holders of LGN Units, including us and the Pubco Subsidiaries.
Investors in this offering will, 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.

157

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

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.

A portion of the Company’s term loan is held by
entities associated with Legence Holdings and the Blackstone Fund. See “Note 17—Related Party Transactions” and “Note 9—