Company: LGN
Filing Date: 2025-09-02
Form Type: S-1/A
Source: 0001193125-25-193346
Chunk: 109

Company: Legence Corp.
Filing Date: 2025-09-02
Form: S-1/A
Chunk 109
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 newly issued LGN Units from Legence Holdings, which Legence Holdings will in turn use to repay outstanding indebtedness under the Term Loan Credit Facility and for general corporate purposes. Legence will bear all of the expenses of this offering. After giving effect to the Corporate Reorganization and the offering contemplated by this prospectus, the Company will own (including through the Pubco Subsidiaries) approximately 54% of the economic interest in Legence Holdings (or 56% if the underwriters’ option to purchase additional shares is exercised in full and after giving effect to the application of the net proceeds therefrom). In addition, Legence will be the managing member of Legence Holdings and will be responsible for all operational, management and administrative decisions relating to Legence Holdings’ business and will have the obligation to absorb losses and receive benefits from Legence Holdings. The Corporate Reorganization lacks economic substance under GAAP and therefore will be accounted for in a manner consistent with a reorganization of entities under common control. As a result, the consolidated financial statements of the Company will recognize the assets and liabilities received in the reorganization at their historical carrying amounts, as reflected in the historical consolidated financial statements of Legence Holdings. For a complete description of the Corporate Reorganization, see the section entitled “Corporate Reorganization” included elsewhere in this prospectus. 2. Notes to Unaudited Pro Forma Condensed Consolidated Balance Sheet Transaction accounting adjustments include the following adjustments related to the unaudited pro forma condensed consolidated balance sheet as of June 30, 2025, as follows:

| a) | Legence incurred $21.0 million of legal, accounting, and other direct costs related to the Offering                                                                                                           
 Transaction, which are recorded in “Other assets” as of June 30, 2025. In addition, Legence accrued $5.4 million of estimated non-recurring direct offering costs in accrued and other current liabilities on |

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| the unaudited pro forma condensed consolidated balance sheet that are expected to be incurred prior to the transaction. Upon completion of the offering, these capitalized costs will be offset 
 against the proceeds and recorded as a reduction of additional paid-in capital.                                                                                                                 |

Separately, Legence has also accrued $2.3 million of estimated transaction related costs that are not eligible for capitalization in accrued and other current liabilities.

| b) | As a result of the Corporate Reorganization and Offering Transactions, Legence will own (including through the                                                                                                                                     
 Pubco Subsidiaries