March 14, 2003, 12:00 AM

Bluefly gets more money from its majority owner

Soros Private Equity Partners has put $2 million of new capital into Bluefly, converted more than $3 million of debt into equity, and is providing a standby commitment for another $1 million, bringing its total investment to $50 million.

Kurt Peters

Executive Editor

Soros Private Equity Partners continues to invest in Bluefly Inc., an online retailer of discount fashion apparel. Soros reported today that it has put $2 million of new capital into Bluefly, converted more than $3 million of debt into equity, and is providing a standby commitment for another $1 million. As a result, the company has issued to Soros approximately $7.1 million of Series D Convertible Preferred Stock that will earn dividends at 12% per year, payable in cash or stock, at the company`s option.

This increases Soros’ ownership of Bluefly to 89.7% from 86.9% and brings Soros’s investment in Bluefly to $50 million. Unlike an infusion from Soros last year that Bluefly used to fund technology investments to improve the web site experience, the company says only that this funding will be used for general corporate purposes.

In a statement announcing the investment, Soros pointed out that it has invested in Bluefly “more than $40 million … after March 2000 when many investors began to lose interest in the e-commerce sector.”

 

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