Company: LGN
Filing Date: 2025-11-03
Form Type: DRS
Source: 0001193125-25-262782
Chunk: 60

Company: Legence Corp.
Filing Date: 2025-11-03
Form: DRS
Chunk 60
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 exacerbate the risks associated with our leverage.

Under the terms of the Credit Agreement, Legence Holdings and its subsidiaries may be able to
incur substantial additional indebtedness in the future. Subject to certain conditions, Legence Holdings may incur

36

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section 200.83

additional indebtedness in the form of term loans or revolving loans. Solely in the case of incremental term loans or revolving loans incurred to finance a permitted acquisition or permitted
investment, Legence Holdings and its subsidiaries may incur unlimited indebtedness so long as, after giving effect to such acquisition or investment, the first lien net leverage ratio, secured net leverage ratio or total net leverage ratio, as
applicable, is no greater than the level immediately prior to such incurrence or the interest coverage ratio is not less than the level immediately prior to such incurrence, as applicable. The incurrence of such additional indebtedness is subject to
other customary conditions including, but not limited to, the absence of an event of default and certain maturity limitations.

If new
indebtedness is added to Legence Holdings and its subsidiaries’ current debt levels, the related risks that we and they now face could intensify. See “Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Liquidity and Capital Resources—Debt.”

Risks Related to Regulations

Our business and our clients’ businesses are subject to a variety of federal, state and local laws and regulations, which could adversely affect our business, financial condition and results of operations.

Federal, state and local laws and regulations affecting our clients,
including, among other things, environmental, health and safety, and permitting requirements, may have a material effect on our business. These regulations are complex and subject to change both in substance and interpretation, and often regulations
across various industries and jurisdictions can differ or conflict, all of which can negatively impact our or our clients’ ability to efficiently operate. Furthermore, certain regulatory requirements applicable to our clients are also required
of us when we contract with such clients, and our inability to meet those requirements could also result in decreased demand for our services. Increased and changing regulatory requirements applicable to us and our clients have resulted in, among
other things, project delays for our services in the past, and may do so in the future, which can adversely affect our business, financial condition and results of operations. Changes in law, regulations or requirements, or a material failure