Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 192

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 192
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 to pay our taxes and make payments under the Tax Receivable Agreement.

131

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section 200.83

CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

Corporate Reorganization

In connection
with our Corporate Reorganization, we will engage in transactions with certain affiliates and our existing equity holders. “Corporate Reorganization” contains a description of these transactions.

Transactions with Affiliates

During the
years ended December 31, 2023 and 2022, we had approximately $3.0 million and $6.0 million, respectively, in revenue and approximately $0.7 million and $1.0 million, respectively, of expense related to direct transactions
with affiliates of Blackstone and several of its portfolio companies. In connection with certain business acquisitions, a portion of the contingent consideration was transferred to certain sellers who became members of management of the Company. See
Notes 4 and 9 of our Consolidated Financial Statements for additional information about the contingent consideration.

In addition,
we lease real estate, vehicles and other equipment under various arrangements. Certain real estate operating leases are under noncancelable agreements with entities owned by certain affiliates and our existing equity holders. See Note 7 of our
Consolidated Financial Statements for additional information about these leases.

In connection with certain acquisitions, we have issued
promissory notes to the sellers of the purchased entities, some of whom are now our affiliates and/or equity holders. Additionally, a portion of the Company’s term loan is held by affiliates of the Company’s Sponsor. See Note 8 of our
Consolidated Financial Statements for additional information about these notes.

Legence Holdings LLC Agreement

Under the Legence Holdings LLC Agreement, we will have the right to determine when distributions will be made to us and the LGN Unit Holders
and the amount of any such distributions. Following this offering, if we authorize a distribution, such distribution will be made to the LGN Unit Holders and us on a pro rata basis in accordance with our respective percentage ownership of LGN Units.

We and the LGN Unit Holders will generally incur U.S. federal, state and local income taxes on our proportionate share of any taxable
income of Legence Holdings LLC and will be allocated our proportionate share of any taxable loss of Legence Holdings LLC. Net profits and net losses of Legence Holdings LLC generally will be allocated to us and the LGN Unit