Company: LGN
Filing Date: 2025-12-09
Form Type: S-1
Source: 0001193125-25-312729
Chunk: 280

Company: Legence Corp.
Filing Date: 2025-12-09
Form: S-1
Chunk 280
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 September 30, 2025 or December 31, 2024.

The revolving line of credit agreement contains a springing financial
maintenance covenant solely for the benefit of the revolving credit facility that requires the Net Leverage Ratio not to exceed 8.50 to 1.00. The revolving line of credit agreement generally defines this as the ratio of first lien secured
indebtedness (net of cash) to consolidated pro forma adjusted EBITDA for the preceding four fiscal quarters. The springing financial maintenance covenant is only tested if, as of the last day of any fiscal quarter, the amount of loans and/or letters
of credit outstanding under the revolving line of credit is greater than 35% of the aggregate revolving credit commitments. The Company has never been required to test the springing financial maintenance covenant.

Subsequent to September 30, 2025, on October 30, 2025, the revolving line of credit agreement was amended to increase the revolving line of credit
capacity to $200.0 million and extend the maturity date to September 22, 2030. After the amendment, the interest rate is reduced to 2.25% for SOFR rate loans and 1.25% for base rate loans.

Notes payable

As part of the consideration transferred
to acquire certain companies, the Company issued notes payable to former owners of acquired companies. The former owners are considered related parties when they are employees or Common Interests holders. The Company can prepay these notes without
penalty.

The Company issued a promissory note payable in connection with a 2022 acquisition. As of September 30, 2025 and December 31, 2024,
the outstanding balance was $10.5 million and $10.0 million, respectively and the carrying value was $9.9 million and $9.3 million, respectively, recorded in Long-term debt, net of current portion

F-29

Legence Corp. Notes to Condensed Consolidated Financial Statements - (Continued) (Unaudited) on the Condensed Consolidated Balance Sheets. The stated interest rate is 5.50%. All principal and interest are due at the earlier of the end of the 5-yearterm in 2027 or upon a sale event as defined in the note agreement. The Company issued promissory notes payable in connection with a 2023 acquisition and a 2022 acquisition, and the holders of the promissory notes were related parties as of September 30