Legence Cuts Interest Rate 25bps on $995M Term Loan to SOFR+2.00%
LGN•Legence repriced its $995 million term loan, cutting the interest rate by 25 basis points to SOFR+2.00% and resetting six-month 101% soft call protection on repricing transactions. The facility rate will drop another 25 basis points to SOFR+1.75% once Legence secures a one-notch corporate credit rating upgrade.
1. Loan Repricing Details
Legence amended its $995 million term loan facility to reduce the interest rate to SOFR+2.00%, a 25 basis-point decrease from previous pricing, and reintroduced a six-month 101% soft call protection for certain repricing transactions.
2. Future Rate Reduction Trigger
The amendment stipulates that upon achieving a one-notch upgrade from either major credit rating agency, the loan margin will further decrease by an additional 25 basis points to SOFR+1.75%, enhancing financing cost efficiency.
3. Impact on Financial Profile
This repricing lowers Legence’s annual interest expense and reflects an improved credit profile, supporting free cash flow generation and aligning with management’s strategy to finance future growth at lower borrowing costs.
