Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 268

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 268
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 payments, related to a 2021 acquisition, made for the settlement of a contingent consideration liability during the year ended December 31, 2023 include 6,800 Parent interests to a related party. Financial Instruments Not Carried at Fair Value:As of December 31, 2023 the estimated fair value of the term loan is approximately $1,041.7 million. The fair value of the term loan as of December 31, 2023 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 carrying value of the term loan as of December 31, 2023 was $1,021.8 million, including $925.3 million due to unrelated parties and $96.5 million due to related parties; see “ Note 8—Debt.” As of December 31, 2023, the estimated fair value of the promissory notes in Notes payable and Notes payable—related parties is approximately $7.5 million and $10.7 million, respectively. The fair value was calculated using a discounted cash flow methodology under the income approach, using interest rate curves, risk premiums, and adjustments for the size and subordination of the instrument (Level 3 measurement). The carrying value of promissory notes in Notes payable included in Long-term debt as of December 31, 2023 is $8.5 million. The carrying value of promissory notes in Notes payable—related parties included in Long-term debt—related parties as of December 31, 2023 is $12.3 million. The carrying value of the remaining Notes payable and Finance lease liabilities approximates fair value as of December 31, 2023. F-37

Confidential Treatment Requested by Legence Corp. Pursuant to 17 C.F.R. Section 200.83 Legence Holdings LLC and Subsidiaries Notes to Consolidated Financial Statements Note 10—Derivatives I nterest Rate Swaps:The Company has entered into multiple interest rate swap agreements designated as cash flow hedges. The Company utilizes these interest rate swap contracts to reduce exposure to fluctuations in variable interest rates for future interest payments on its term loan. The total notional amount is $675.0 million as of December 31, 2023. During the first quarter of 2023, the Company amended the swap agreements to transition