Ares Management Corp.'s private equity arm and Oaktree Capital Management LP, through their respective funds, closed a $50 million equity transaction with Infrastructure and Energy Alternatives Inc., or IEA.

The funds bought $50 million of newly created series B preferred shares of IEA and obtained initial warrants to buy as many as 2,545,934 million common shares at an exercise price of 1 cent apiece. The funds may also secure warrants for up to an additional 6% of IEA's fully diluted common stock outstanding if the company fails to achieve certain performance targets. Ares will be entitled to name one director to IEA's board.

The infrastructure construction company, which has expertise on heavy civil and energy, plans to use the proceeds for working capital and for reducing outstanding borrowings under its revolving credit facility. It also amended its senior credit facility to give it additional flexibility by increasing the first-lien debt-to-adjusted EBITDA ratio through 2019, among other changes.

Guggenheim Securities LLC was IEA's sole placement agent, and Jefferies served as financial adviser.