Company: LGN
Filing Date: 2025-12-09
Form Type: S-1
Source: 0001193125-25-312729
Chunk: 61

Company: Legence Corp.
Filing Date: 2025-12-09
Form: S-1
Chunk 61
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 limit our ability to finance future operations, acquisitions or capital needs or engage in other business activities that may be in our interest. The agreements governing our debt contain a number of significant covenants that impose operating and other restrictions on us and our subsidiaries. Such restrictions affect or will affect and, in many respects, limit or prohibit, among other things, our ability and the ability of some of our subsidiaries to:

| • |     | incur additional indebtedness; |

| • |     | create liens; |

| • |     | pay dividends and make other distributions in respect of our equity securities; |

| • |     | redeem or repurchase our equity securities; |

| • |     | make investments or other restricted payments; |

| • |     | sell assets; |

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| • |     | enter into transactions with affiliates; and |

| • |     | effect mergers or consolidations. |

In addition, these agreements require us to comply with certain leverage ratios under certain, specified circumstances. Our ability to comply with these ratios may be affected by events beyond our control. These restrictions could limit our ability to plan for or react to market or economic conditions or meet capital needs or otherwise restrict our activities or business plans and could adversely affect our ability to finance our operations, acquisitions, investments or strategic alliances or other capital needs or to engage in other business activities that would be in our interest. A breach of any of these covenants or our inability to comply with the required financial ratios could result in a default under our debt instruments. If an event of default occurs, our creditors could elect to:

| • |     | declare all borrowings outstanding, together with accrued and unpaid interest, to be immediately due and payable; |

| • |     | require us to apply all of our available cash to repay the borrowings; or |

| • |     | prevent us from making debt service payments on our borrowings. |

If we were unable to repay or otherwise refinance our borrowings when due, the applicable creditors could sell the collateral securing some of our debt instruments, which constitutes substantially all of our and our subsidiaries’ assets. Such events could have a material adverse impact on our business, financial condition and results of operations. Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly. Borrowings under our Credit Facilities are at variable rates of interest and expose us to interest rate risk. If interest rates increase, our debt service obligations on the variable rate indebtedness will