Infrastructure and Energy Alternatives, Inc. Announces Closing of $50 Million Equity Transaction
May 20 2019 - 6:24PM
Infrastructure and Energy Alternatives, Inc. (NASDAQ: IEA) (“IEA”
or the “Company”), a leading infrastructure construction company
with specialized energy and heavy civil expertise, today announced
that it has successfully completed the previously announced $50
million equity transaction (“Equity Transaction”) with a fund
managed by the Private Equity Group of Ares Management Corporation
(NYSE: ARES), a leading global alternative asset manager, and funds
managed by Oaktree Capital Management, L.P. (“Oaktree”).
Under the terms of the transaction, the funds
have purchased $50 million of newly created Series B Preferred
Stock from the Company and have received initial warrants with an
exercise price of $.01 per share for the purchase of up to
2,545,934 million shares of the Company’s common stock, with the
opportunity to obtain warrants for up to an additional 6% of
the Company’s fully diluted common stock outstanding in the event
that the Company fails to meet certain performance targets. Ares
will be entitled to appoint one director to the Company’s Board of
Directors.
The proceeds from the sale of the Series B
Preferred Stock will be used for working capital and to reduce
outstanding borrowings under the Company’s revolving credit
facility.
In conjunction with the closing of the Equity
Transaction, the Company entered into an amendment with a majority
in interest of its lenders under its senior credit facility to
amend such facility. Terms of the amendment include, among other
items, an increase in the first lien debt to Adjusted EBITDA ratio
through 2019, allowing the Company additional flexibility. The
Company has also agreed to provide the lenders with several
additional protections, including further limitations on existing
negative covenants and limits on the Company’s ability to incur
additional debt and make payments on its equity. Investors should
review the Company’s Quarterly Report on Form 10-Q for the quarter
ended March 31, 2019 and the Company’s filing of a current report
on Form 8-K today regarding the transaction for a more detailed
description of the Amendment.
Guggenheim Securities, LLC acted as the
Company’s sole placement agent and Jefferies acted as a financial
advisor in connection with the transaction.
About IEA
Infrastructure and Energy Alternatives, Inc.
(IEA) is a leading infrastructure construction company with
specialized energy and heavy civil expertise. Headquartered in
Indianapolis, Indiana, with operations throughout the country,
IEA’s service offering spans the entire construction process. The
Company offers a full spectrum of delivery models including full
engineering, procurement, and construction, turnkey, design-build,
balance of plant, and subcontracting services. IEA is one of three
Tier 1 wind energy contractors in the United States and has
completed more than 200 wind and solar projects across North
America. In the heavy civil space, IEA offers a number of specialty
services including environmental remediation, industrial
maintenance, specialty transportation infrastructure and other site
development for public and private projects. For more information,
please visit IEA’s website at www.iea.net or follow IEA on
Facebook, LinkedIn and Twitter for the latest company news and
events.
About Ares Management
Corporation
Ares Management Corporation is a publicly
traded, leading global alternative asset manager with approximately
$137 billion of assets under management as of March 31, 2019 and 18
offices in the United States, Europe, Asia and Australia. Since its
inception in 1997, Ares has adhered to a disciplined investment
philosophy that focuses on delivering strong risk-adjusted
investment returns throughout market cycles. Ares believes each of
its three distinct but complementary investment groups in Credit,
Private Equity and Real Estate is a market leader based on assets
under management and investment performance. Ares was built upon
the fundamental principle that each group benefits from being part
of the greater whole. For more information, visit
www.aresmgmt.com.
Forward Looking Statements
This release contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended (the “Securities Act”) and Section 21E of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”). The
forward-looking statements can be identified by the use of
forward-looking terminology including “may,” “should,” “likely,”
“will,” “believe,” “expect,” “anticipate,” “estimate,” “forecast,”
“seek,” “target,” “continue,” “plan,” “intend,” “project,” or other
similar words. All statements, other than statements of historical
fact included in this press release, our use of proceeds, future
financial performance, business strategies, expectations for our
business, future operations, financial position, estimated revenues
and losses, projected costs, prospects, plans, objectives and
beliefs of management are forward-looking statements. These
forward-looking statements are based on information available as of
the date of this release and our management’s current expectations,
forecasts and assumptions, and involve a number of judgments, risks
and uncertainties. Although we believe that the expectations
reflected in such forward-looking statements are reasonable, we
cannot give any assurance that such expectations will prove
correct. Forward-looking statements should not be relied upon as
representing our views as of any subsequent date. As a result of a
number of known and unknown risks and uncertainties, our actual
results or performance may be materially different from those
expressed or implied by these forward-looking statements. Some
factors that could cause actual results to differ include:
- availability of commercially reasonable and accessible sources
of liquidity;
- our ability to generate cash flow and liquidity to fund
operations;
- the timing and extent of fluctuations in geographic, weather
and operational factors affecting our customers, projects and the
industries in which we operate;
- our ability to identify acquisition candidates, integrate
acquired businesses and realize upon the expected benefits of the
acquisition of CCS and William Charles;
- consumer demand;
- our ability to grow and manage growth profitably;
- the possibility that we may be adversely affected by economic,
business, and/or competitive factors;
- market conditions, technological developments, regulatory
changes or other governmental policy uncertainty that affects us or
our customers;
- our ability to manage projects effectively and in accordance
with management estimates, as well as the ability to accurately
estimate the costs associated with our fixed price and other
contracts, including any material changes in estimates for
completion of projects;
- the effect on demand for our services and changes in the amount
of capital expenditures by customers due to, among other things,
economic conditions, commodity price fluctuations, the availability
and cost of financing, and customer consolidation;
- the ability of customers to terminate or reduce the amount of
work, or in some cases, the prices paid for services, on short or
no notice;
- customer disputes related to the performance of
services;
- disputes with, or failures of, subcontractors to deliver
agreed-upon supplies or services in a timely fashion;
- our ability to replace non-recurring projects with new
projects;
- the impact of U.S. federal, local, state, foreign or tax
legislation and other regulations affecting the renewable energy
industry and related projects and expenditures;
- the effect of state and federal regulatory initiatives,
including costs of compliance with existing and future safety and
environmental requirements;
- fluctuations in maintenance, materials, labor and other
costs;
- our beliefs regarding the state of the renewable wind energy
market generally; and
- the “Risk Factors” described in our Annual Report on Form 10-K
for the year ended December 31, 2018, and in our quarterly reports,
other public filings and press releases.
We do not undertake any obligation to update
forward-looking statements to reflect events or circumstances after
the date they were made, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws.
Contact
Andrew Layman |
Financial Profiles, Inc. |
Chief Financial Officer |
Larry Clark, Senior Vice President |
Andrew.Layman@iea.net |
lclark@finprofiles.com |
765-828-2580 |
310-622-8223 |
Ares Management (NYSE:ARES)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ares Management (NYSE:ARES)
Historical Stock Chart
From Apr 2023 to Apr 2024