Prospectus Supplement No. 4
The Prospectus dated November 14, 1996 (the "Prospectus") relating to the
offer for resale of up to $115,000,000 aggregate principal amount of 5 1/2%
Convertible Subordinated Debentures due 2006 of Aames Financial Corporation
(the "Company") and 4,107,142 shares of the common stock of the Company,
par value $0.001 per share, into which such Debentures are convertible is
hereby amended as follows:
(1) The fourth paragraph appearing on the cover page of the
Prospectus is deleted and replaced in its entirety as follows:
"The Debentures are general unsecured obligations of the Company,
subordinated to all existing and future Senior Indebtedness (as defined
herein), which at October 31, 1996 was approximately $256 million,
including $23.0 million of the Company's 10.5% Senior Notes due 2002, $150
million of the Company's 9.125% Senior Notes due 2003 and Company
guarantees of approximately $82.9 million of warehouse indebtedness
outstanding on such date incurred by a wholly owned subsidiary of the
Company. See `Description of the Debentures.'"
(2) The following entity is hereby named as Selling Security Holder
as contemplated on page 33 of the Prospectus:
SELLING SECURITY HOLDER PRINCIPAL AMOUNT OF DEBENTURES
----------------------- ------------------------------
NatWest Securities Limited $7,670,000
135 Bishops Gate
London, England EC2M3XT
NatWest Securities Limited and its affiliates have in the past provided to
the Company and its subsidiaries investment banking services for which it
has received customary fees and may in the future provide such services.
The date of this Prospectus Supplement is December 12, 1996.
