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Bluefly today announced that private funds associated with Maverick Capital Ltd. and an entity affiliated with Prentice Capital Management LP reached a definitive agreement to purchase $50 million of newly issued common stock.
Bluefly Inc. has a major new investor.
Bluefly today announced that private funds associated with Maverick Capital Ltd. and an entity affiliated with Prentice Capital Management LP reached a definitive agreement to purchase $50 million of newly issued common stock from Bluefly, No. 129 in the Internet Retailer Top 500 Guide to Retail Web Sites.
In connection with the transaction, private funds associated with Soros Fund Management LLC, collectively Bluefly`s largest stockholder, agreed to convert all of their preferred stock into common stock. $25 million of the proceeds will be retained by Bluefly to grow its business and fund working capital. The balance of $25 million will be used to repay debt to the Soros funds, as well as to pay accrued dividends on the preferred stock being converted in connection with the transaction.
"Bluefly is now in an outstanding position to expand its growth," says Bluefly CEO Melissa Payner. "We believe this new capital will enable us to increase our marketing results without the need to raise additional capital prior to achieving profitability. The investment will provide Bluefly with a far simpler capital structure with conversion of nearly all of the preferred stock. We also have significantly strengthened our investor base with the addition of Maverick Capital and Prentice Capital."