Bluefly gets another infusion of cash

Bluefly Inc., an online discounter of brand-name fashions, received another infusion of capital through a $2 investment by affiliates of Soros Private Equity Partners LLC, Bluefly said today. That brings the investment to date in Bluefly by Soros investors to $55 million, or 89.8% of Bluefly’s outstanding equity. Bluefly will use the funds for general operating purposes at Bluefly.com, a spokeswoman says.

Under terms of the deal, Bluefly issued $2 million of convertible promissory notes that bear interest at a rate of 12% per annum and have a maturity date of April 14, 2004, Bluefly said. The promissory notes, together with any interest that has accrued, are convertible into equity securities of the company in any subsequent round of financing, at the holder’s option, at a price that is equal to the lowest price per share accepted by any investor in the round.

Soros investors also invested $2 million in Bluefly in July, $1 million in May and $2 million in March. Bluefly reported second-quarter net sales of $7.47 million, up 9% from $6.8million in the year-earlier period.