April 4, 2001, 12:00 AM

Bluefly.com lands additional funding

Bluefly has completed a second round of equity financing and secured a $10 million line of revolving credit.

Bluefly Inc., an online outlet for designer fashions, has completed two separate financings, one through the issuance of $10 million of common stock to affiliates of Soros Private Equity Partners and the other through the establishment of a secured, revolving credit facility that provides Bluefly with access to additional cash or trade credit. Soros Private Equity Partners recevied 4.27 million shares of common stock at a per share price of $2.34, an 87% premium to the closing price of Bluefly`s common stock on March 30, 2001, in return for $10 million. The purchase of common stock by affiliates of Soros Private Equity Partners represented its standby commitment in connection with Bluefly`s rights offering, which closed on March 26, 2001. The public stockholders subscribed for 6,921 shares of common stock in the offering. Including its $10 million purchase of common stock, affiliates of Soros Private Equity Partners now own approximately 78% of Bluefly`s outstanding equity. Separately, in a move the company says should help improve Bluefly`s payment terms with its suppliers, Bluefly entered into a one-year agreement with Rosenthal & Rosenthal Inc., a financial services and factoring firm. Under its agreement with Rosenthal, Bluefly has the right to obtain certain credit accommodations from Rosenthal, including cash borrowings. The amount available to Bluefly is dependent in part on the value of Bluefly`s inventory, but cannot exceed $10 million. "Having completed these two transactions, Bluefly is in an even stronger position to capitalize on its growth strategy and the recent weakness in the e-tailing sector which has eliminated many competitors," said Ken Seiff, chief executive officer of Bluefly. Bluefly offers discounts of up to 75% on products from over 450 designers.

 

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