Bluefly Gets Another $2 Million in Financing

Online-only cataloger Bluefly on March 14 received $2.0 million in investment capital from Soros Private Equity Partners. Soros also converted more than $3 million of debt and exchanged $2.1 million of its series 2002 convertible preferred stock. In return, the discounter of designer apparel and home accessories issued to Soros approximately $7.1 million of series D convertible preferred stock that will earn dividends at the rate of 12% per year, payable in cash or stock, at the company’s option, upon conversion.

Soros has also agreed to provide on a standby basis at any time prior to Jan. 1, 2004, an additional $1.0 million, assuming certain conditions. On a fully diluted basis, Soros’s stake in New York-based Bluefly has increased to 76.1% from 70.8%. To date, Soros has invested some $50 million in Bluefly.