Legence Corp. affiliates pledge majority stake as collateral for $650 million loan

Affiliates of Blackstone Inc. holding a majority stake in Legence Corp. (NASDAQ:LGN) have pledged most of their shares in the company as collateral for a $650 million margin loan, according to a statement in a press release filed with the Securities and Exchange Commission. Legence, currently valued at approximately $4.31 billion, has seen its shares climb 34.3% over the past six months, according to InvestingPro data.

On Friday, Legence Parent LLC and Legence Parent II LLC, which are associated with investment funds managed by Blackstone and are the current majority owners of Legence Corp., informed the company that their wholly owned subsidiaries entered into two separate margin loan agreements with Goldman Sachs Bank USA as administrative agent and other lenders. The agreements were executed on Friday.

As part of the loan arrangements, the subsidiaries pledged a total of 29,022,940 shares of Class A common stock, 46,680,762 shares of Class B common stock, and 46,680,762 Class B units of Legence Holdings LLC as collateral to secure the borrowings. These pledged assets collectively represent approximately 72% of Legence Corp.’s outstanding Class A common stock, assuming conversion of all outstanding Class B units and shares.

The loan agreements include customary default provisions. In the event of default by the borrowers, the secured parties may foreclose on any or all of the pledged shares and units.

Legence Corp. stated in the press release that it did not independently verify or participate in the preparation of the disclosure regarding the loan agreements. The company is not a party to the loan documents and does not have obligations under them, but has agreed, subject to applicable law and stock exchange rules, not to take actions intended to materially hinder or delay the exercise of remedies by the lenders under the pledge agreements.

This information is based on a press release statement filed with the SEC.

In other recent news, Legence Corp has reported strong financial results, particularly in its third-quarter 2025 performance, which exceeded expectations. The company achieved a 26% year-over-year organic growth in revenue, driven primarily by its Data Centers & Technology segment, which saw a remarkable 64% increase. This growth was further bolstered by new building projects, particularly data centers, which experienced an 84% growth. Analysts have responded positively to these developments, with Stifel raising its price target for Legence to $47, citing the strength in data centers. Similarly, RBC Capital increased its price target to $48, noting that Legence’s inaugural quarter as a public company surpassed revenue and EBITDA estimates. Jefferies upgraded Legence’s stock rating to Buy, highlighting the company’s reactivation of its mergers and acquisitions strategy, which now significantly contributes to its business mix. BMO Capital also raised its price target to $46, acknowledging the strong quarterly results and the impact of recent M&A transactions. Tigress Financial initiated coverage with a Buy rating, emphasizing the company’s AI growth potential.

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