The primary investor in Bluefly Inc. keeps pouring money into the company. Bluefly, an online discount retailer of brand-name fashions, reported today that Soros Private Equity Partners LLC has invested an additional $2 million in the company. Soros investors have put $53 million into Bluefly since its start and now own 89.9% of the company.
Under the terms of the deal, Bluefly issued $2 million of convertible promissory notes that bear interest at a rate of 12% and have a maturity date of January 12, 2004. The promissory notes together with any interest that has accrued are convertible into equity in any subsequent round of financing, at the holder`s option, at a price equal to the lowest price per share accepted by any investor in the round.
The Soros group also made a $1 million investment in May and $2million in March. Bluefly’s first quarter revenue was $8.25 million.