Company: LGN
Filing Date: 2025-07-15
Form Type: DRS/A
Source: 0000950123-25-006399
Chunk: 335

Company: Legence Corp.
Filing Date: 2025-07-15
Form: DRS/A
Chunk 335
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 outstanding under the revolving line of credit, with an interest rate of 3.88%.

As of March 31, 2025, $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 March 31, 2025 or December 31, 2024.

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 March 31, 2025.

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 Parent 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 March 31, 2025 and December 31, 2024, the outstanding balance was $10.2 million and $10.0 million, respectively and the carrying value was
$9.5 million and $9.3 million, respectively, recorded in Long-term debt, net of current portion 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-year term 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 March 31, 2025 and December 31, 2024. As of March 31, 2025 and December 31, 2024, the
outstanding balance was $13.0 million and $14.6 million