Company: LGN
Filing Date: 2025-09-02
Form Type: S-1/A
Source: 0001193125-25-193346
Chunk: 312

Company: Legence Corp.
Filing Date: 2025-09-02
Form: S-1/A
Chunk 312
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. As of December 31, 2024,
there are $5.2 million letters of credit outstanding under the revolving line of credit, with an interest rate of 3.88%.

As of December 31,
2024, $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, 2024 or 2023.

The Company’s revolving line of 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, 2024.

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, 2024 and 2023, the outstanding
balance is $10.0 million and $9.5 million, respectively, and the carrying value is $9.3 million and $8.5 million, respectively, recorded in Long-term debt, net of current portion on the Consolidated Balance Sheets. 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
holders of the promissory notes were related parties as of December 31, 2024 and 2023. As of December 31, 2024 and 2023, the outstanding balance