Company: LGN
Filing Date: 2025-11-03
Form Type: DRS
Source: 0001193125-25-262782
Chunk: 282

Company: Legence Corp.
Filing Date: 2025-11-03
Form: DRS
Chunk 282
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Company secured a $315.0 million incremental term loan, and the proceeds were used for general corporate purposes, including to fund a shareholder distribution, as discussed in
“,” and to fund acquisition-related payments. The Company paid debt issuance costs of $0.4 million related to this incremental term loan.

Advances under the term loan agreement may be elected to be treated as either SOFR rate loans or base rate loans. SOFR rate loans bear
interest at SOFR plus 3.25% to 3.75% based on the Company’s Consolidated First Lien Net Leverage Ratio (the “Net Leverage Ratio”), (generally defined as the ratio of indebtedness net of cash to consolidated pro forma adjusted
EBITDA for the preceding four fiscal quarters), with a SOFR floor of 0.75%, plus the 0.10% credit spread adjustment. Interest on SOFR rate loans is payable based on the selected interest period if less than three months or quarterly if the selected
interest period is three months or longer. Base rate loans bear interest at 2.25% to 2.75% plus the base rate, which is the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate and (c) the SOFR rate for one month plus 1.00%
plus the 0.10% credit spread adjustment. Interest on base rate loans is payable quarterly. The interest rates are 7.96%, 8.96% and 8.13% as of December 31, 2024, 2023 and 2022, respectively.

As of December 31, 2024, principal payments on the term loans of $4.1 million are payable quarterly, with any remaining principal
balance due on December 16, 2027. The Company may also be required to make additional principal payments based on its excess cash flow, as defined in the agreement.

The term loan contains customary representations and warranties and customary events of default, as well as certain affirmative and negative
covenants. The Company is in compliance with the financial covenants as of December 31, 2024.

Subsequent to the year ended
December 31, 2024, the term loan agreement was amended on February 6, 2025 to reduce the interest rate and extend the maturity date from December 16, 2027 to December 16, 2028.

Revolving line of