Company: LGN
Filing Date: 2025-12-09
Form Type: S-1
Source: 0001193125-25-312729
Chunk: 282

Company: Legence Corp.
Filing Date: 2025-12-09
Form: S-1
Chunk 282
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      — |     | $       |   137 |     | $       | — |

The carrying value of Cash approximates fair value due to its short-term nature. Interest Rate Swap Instruments:Additional derivative instrument disclosures for the Company’s interest rate swaps can be found in “Note 9—Derivatives”. For determining the fair value of the interest rate swap contracts, the Company uses significant observable market data or assumptions (Level 2 inputs) that market participants would use in pricing similar assets or liabilities, including assumptions about counterparty risk. The fair value estimates reflect an income approach based on the terms of the interest rate swap contracts and inputs corroborated by observable market data, including interest rate curves. Financial Instruments Not Carried at Fair Value:The table below shows the fair value and carrying value of the term loan and promissory notes (a component of notes payable) included in Total debt as shown in “Note 7—Debt” (in thousands):

|                  |     |            | September 30, 2025 |     |                |         |     |            | December 31, 2024 |     |                |           |
|:-----------------|:----|:-----------|-------------------:|:----|:---------------|--------:|:----|:-----------|------------------:|:----|:---------------|----------:|
|                  |     | Fair Value |                    |     | Carrying Value |         |     | Fair Value |                   |     | Carrying Value |           |
| Term loan        |     | $          |            800,405 |     | $              | 792,002 |     | $          |         1,597,825 |     | $              | 1,576,502 |
| Promissory notes |     | $          |             20,085 |     | $              |  22,004 |     | $          |            19,475 |     | $              |    22,646 |

The fair value of the term loan as of September 30, 2025 and December 31, 2024 was derived by taking the mid-pointof the trading prices from observable market inputs in the secondary bond market for the term loan (Level 2 measurement) and multiplying it by the outstanding face value of the term loan. The fair value of the promissory notes as of September 30, 2025 and December 31, 2024 was calculated using a discounted cash flow methodology