Company: LGN
Filing Date: 2025-04-30
Form Type: DRS/A
Source: 0000950123-25-003868
Chunk: 208

Company: Legence Corp.
Filing Date: 2025-04-30
Form: DRS/A
Chunk 208
---
, therefore, will continue to hold their ownership 138

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section 200.83

interests indirectly in Legence Holdings until such time in the future as they or Aggregator I may elect to cause us to redeem or exchange their LGN Units and a corresponding number of
Class B Common Stock for a corresponding number of shares of our Class A Common Stock. Additionally, because Aggregator I is entitled to have its LGN Units and a corresponding number of Class B Common Stock redeemed or exchanged for a
corresponding number of shares of our Class A Common Stock, the UP-C structure also provides the Existing Owners that will hold through Aggregator I with potential liquidity for their LGN Units that
holders of non-publicly traded limited liability companies are not typically afforded.

The UP-C structure also provides future tax benefits for both the public company and certain of the Existing Owners. As described further below under “—Holding Company Structure” and “Certain
Relationships and Related Party Transactions—Tax Receivable Agreement,” additional acquisitions by Legence of LGN Units from Aggregator I or any of the Existing Owners that will own an interest in Legence Holdings through Aggregator I and
any future taxable redemptions or exchanges by the LGN Unit Holders of LGN Units for shares of our Class A Common Stock are expected to result in tax basis adjustments with respect to the assets of Legence Holdings that will be allocated to us
and thus produce favorable tax attributes for us. These tax attributes are expected to reduce the amount of tax that we would otherwise be required to pay in the future. While the Tax Receivable Agreement will require us to pay the TRA Members 85%
of the amount of cash savings, if any, in our U.S. federal, state and local income tax or franchise tax that we actually realize from the utilization of such tax attributes, we will be able to retain the benefit of the remaining 15% of these tax
savings.

Holding Company Structure

Our post-offering organizational structure will allow Legence Parent to retain its equity ownership in Legence Holdings, a partnership for U.S.
federal income tax purposes and, as such, generally will not be subject to any entity-level U.S. federal income tax. Instead, any taxable income of Legence Holdings will be allocated to holders of LGN Units, including us and the Pubco Subsidiaries.
Investors in this offering will,