Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 104

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 104
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Confidential Treatment Requested by Legence Corp. Pursuant to 17 C.F.R. Section 200.83

| condensed consolidated balance sheet. Upon completion of this offering, these capitalized costs will be offset against the proceeds raised from this offering as a reduction of additional paid-in capital. |

| b) | Legence Holdings will be treated as a partnership for U.S. federal income tax purposes. As such, Legence                                                                                                                                            
 Holdings’ earnings and losses will flow through to its partners, including Legence, and are generally not subject to significant entity level taxes at the Legence Holdings level. Legence Holdings wholly owns certain corporate subsidiaries that 
 are regarded entities for tax purposes and subject to U.S. federal, state and local taxes on income they generate. As such, the consolidated provision of Legence will include corporate taxes that it incurs based on its flow-through income from 
 Legence Holdings, as well as corporate taxes that are incurred by its regarded subsidiaries. As described in “Corporate Reorganization,” upon completion of the Corporate Reorganization, Legence will become the managing member of Legence        
 Holdings and its subsidiaries and operate and control all of the business and affairs of Legence Holdings. As a result of the Transactions, Legence will own approximately % of the economic interest in Legence Holdings will have  % of the       
 voting power and will control the management of Legence Holdings. Immediately following the completion of the Corporate Reorganization, the ownership percentage held by noncontrolling interest will be approximately  %.                          |

Represents an adjustment to equity reflecting (i) the par value for Class A Common Stock and Class B Common Stock, (ii) a decrease in $ of LGN Unit Holders’ interest to the noncontrolling interests related to the % economic interest held by the Existing Owners and (iii) reclassification of LGN Unit Holders’ interest of $ to additional paid-in capital.

| c) | Prior to the completion of the Offering Transactions, Legence will enter into a Tax Receivable Agreement with                                                                                                                                             
 certain of our Existing Owners that provides for the payment by Legence to the TRA Members of 85% of the realized benefits, if any, as a result of increases in Legence’s share of existing tax basis and adjustments to the tax basis of the assets      
 of Legence Holdings as a result of sales or exchanges of LGN Units, and Legence’s utilization of certain tax attributes of the Blocker Entities and certain other tax benefits