BLUEFLY GETS $15 MILLION INVESTMENT
NEW YORK — Bluefly, a leading online off-pricer, has received a $15 million funding commitment from its largest shareholders, a group led by Soros Private Equity Partners. Of the $15 million available, Bluefly has so far borrowed $3 million.
The $3 million loan carries an interest rate of 8 percent and is due in January 2002, according to Bluefly’s annual report, filed with the Securities & Exchange Commission Thursday. Amounts due under the note will convert into securities sold in Bluefly’s next round of financing, expected to take place sometime this year.
In connection with the financing commitment, Bluefly also gave the Soros group a warrant to buy up to 175,000 additional shares of Bluefly stock. The investor group, which is affiliated with billionaire financier and philanthropist George Soros, made a $10 million investment in Bluefly last September.
Bluefly’s investment bank, Credit Suisse First Boston, is helping the firm to determine the most prudent financing strategy, according to the filing. Bluefly said that even if it does not raise more money, its current resources should satisfy its cash requirements through the end of 2000.
Bluefly shares lost 1/16 to close at 9 3/8 in over-the-counter trading Thursday.