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.
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