Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 261

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 261
---
     |   |  5,168 |   |
| Capitalized interest                              |     |                         |    (355 | ) |     |   |   (619 | ) |
| Interest expense, net of capitalized interest     |     | $                       |  51,551 |   |     | $ | 44,285 |   |

Interest expense—related parties consists of the following (in thousands):

|                                                   |     | Year Ended December 31, |   2023 |     |   |  2022 |
|:--------------------------------------------------|:----|:------------------------|-------:|:----|:--|------:|
| Contractual interest expense                      |     | $                       | 11,621 |     | $ | 5,948 |
| Amortization of debt issuance costs and discounts |     |                         |    775 |     |   |   367 |
| Interest expense—related parties                  |     | $                       | 12,396 |     | $ | 6,315 |

Term loan On December 16, 2020, the Company entered into a term loan with Jefferies Finance LLC (Jefferies) as the administrative agent for a group of lenders. The term loan agreement matures on December 16, 2027, and is secured by substantially all assets of the Company, subject to customary exclusions. The term loan—related parties are term loan balances held by affiliates of the Company’s Sponsor. They are subject to the same terms described below, including interest payments, principal payments and maturity. Throughout 2022, the Company drew the full amount of a $146.7 million DDTL commitment under its term loan. The proceeds were used or designated to fund acquisition-related payments, and quarterly principal payments increased by 0.25% of the amount drawn. The Company paid debt issuance costs of $1.5 million related to issuing term loan debt on the DDTL commitment and $2.5 million related to amending the DDTL commitment. On February 27, 2023, the Company amended the term loan agreement to transition from London Interbank Offered Rate (“LIBOR”) to Secured Overnight Financing Rate (“SOFR”) for an additional credit spread adjustment of 0.10%. On July 31, 2023, the Company secured a $155.0 million incremental term loan, and the proceeds were used to fund acquisition-related payments. The Company paid debt issuance costs of $3.