Company: LGN
Filing Date: 2025-07-15
Form Type: DRS/A
Source: 0000950123-25-006399
Chunk: 210

Company: Legence Corp.
Filing Date: 2025-07-15
Form: DRS/A
Chunk 210
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ence Holdings.

This offering is being conducted through what is commonly referred to as an “UP-C”
structure, which is often used by partnerships and limited liability companies undertaking an initial public offering. The UP-C structure provides the LGN Unit Holders with the tax advantage of continuing to
own interests in a pass-through structure, which is tax efficient because their allocable shares of income from Legence Holdings will not be subject to entity-level tax. The UP-C structure will also provide
potential future tax benefits for both the public company and the LGN Unit Holders when they ultimately exchange their pass-through interests for shares of Class A Common Stock, which is expected to result in tax basis adjustments in the assets
of Legence Holdings and produce favorable tax attributes for us. See “—Holding Company Structure” and “Certain Relationships and Related Party Transactions—Tax Receivable Agreement.”

In connection with this offering: (a) Legence Parent formed Legence; (b) the ownership interests in Legence Holdings will be
recapitalized into two classes of common equity limited liability company units (defined herein as LGN Units); (c) Legence Intermediate will distribute a portion of its interests in Legence Holdings to Legence Parent, which will in turn distribute
such interests to certain of the Existing Owners; (d) such Existing Owners will contribute all of, and Legence Intermediate will contribute a portion of, their interests in Legence Holdings directly, or indirectly by contribution of interests
in Blocker Entities holding interests in Legence Holdings, to Legence in exchange for newly issued Class A Common Stock; (e) such Existing Owners will contribute such Class A Common Stock received to Aggregator II, and Legence
Intermediate will liquidate and distribute such Class A Common Stock and its remaining interests in Legence Holdings to Legence Parent; (f) Legence Parent will subscribe for newly issued Class B Common Stock from Legence in exchange
for nominal consideration as a result of its historic indirect ownership of Legence Holdings, and certain of the Existing Owners will continue to hold a portion of their pre-IPO ownership interest in Legence
Holdings through Legence Parent; (g) Legence (through Legence Sub) will contribute the net proceeds of this offering to Legence Holdings in exchange for newly issued LGN Units; and (h) the Legence Holdings LLC Agreement will be amended and
restated to, among other things, make Legence the managing member of Legence Holdings. After giving effect to the Corporate Reorganization