California-based commercial heating, ventilation, air-conditioning, and mechanical, electrical, and plumbing services provider Legence Holdings LLC , plans to issue a $250 million incremental first-lien term loan and use the proceeds to fund general corporate purposes including dividends and mergers and acquisitions. Pro forma for the transaction, the company?s S&P Global Ratings-adjusted leverage increases to 8.1x from 6.9x for the 12 months ended Sept. 30, 2024; however, we expect the company will deleverage towards the mid-7x area by the end of 2024 with moderate free operating cash flow (FOCF) generation due to strong growth prospects and favorable industry trends. Therefore, we affirmed our ratings on Legence, including our ?B-? issuer credit rating and first-lien debt ratings. The stable outlook reflects our
