Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 264

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 264
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 line of credit provides for standby letters of credit, which reduce the available borrowings. As of
December 31, 2023, there are

F-34

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section 200.83

Legence Holdings LLC and Subsidiaries

Notes to Consolidated Financial Statements

$5.2 million letters of credit outstanding under the revolving line of credit, with an interest rate of 3.88%.

As of December 31, 2023, $84.8 million was available to be borrowed under the revolving line of credit. There were no borrowings under the revolving
line of credit as of December 31, 2023, or 2022.

The Company’s credit agreement, in addition to customary affirmative covenants, contains a
financial covenant that requires the Consolidated First Lien Net Leverage Ratio to be less than 8.50 to 1.00. The Net Leverage Ratio is only tested if as of the last day of a Test Period (generally quarterly) the amount of loans and/or letters of
credit outstanding under the revolving line of credit is greater than 35% of the facility size. Since August 5, 2021, the facility size has been $90.0 million and the Net Leverage Ratio has not been required to be tested, therefore, the
Company is in compliance with the financial covenant as of December 31, 2023.

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, 2023 the outstanding balance is
$9.5 million and the carrying value is $8.5 million, recorded in Long-term debt on the Consolidated Balance Sheet. 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 lenders were related parties as