ࡱ> kl l \pThe Free Software Foundation B=PF0*8X@"1 Helvetica1Courier1 Courier New1 Courier New1 Helvetica$#,##0_);($#,##0)$#,##0_);[Red]($#,##0)$#,##0.00_);($#,##0.00)$#,##0.00_);[Red]($#,##0.00)-**_($* #,##0_);_($* (#,##0);_($* "-"_);_(@_)*)'_(* #,##0_);_(* (#,##0);_(* "-"_);_(@_)5,2_($* #,##0.00_);_($* (#,##0.00);_($* "-"??_);_(@_)2+/_(* #,##0.00_);_(* (#,##0.00);_(* "-"??_);_(@_)2$#,##0.00;[Red]$#,##0.003$#,##0.00;[Red]($#,##0.00)4$#,##0;[Red]($#,##00)50.00%;[Red](0.00%)6 0%;[Red](0%)7#,##0.00;[Red](#,##0.00)8#,##0;[Red](#,##0)                + ) , *   Ј ~~ ؈ ~~#؈ ~~ ؈ ~~8#܈ ~~7#܈ ~~<#܈ ~~4#܈ ~~83ffff̙̙3f3fff3f3f33333f33Prospectus Supplement\ Prospectus&The following is a brief summar$8The following is a brief (1)$RThe following is a brief (2)&uaS39 RATIO OF EARNINGS TO FIXED pTABLE OF CONTENTSySELLING STOCKHOLDERSSELLING STOCKHO (1) l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? Prospectus!The following is a brief summarThe following is a brief (1)The following is a brief (2)!S39 RATIO OF EARNINGS TO FIXED TABLE OF CONTENTSSELLING STOCKHOLDERSSELLING STOCKHO (1)U } 8}        B. Riley Financial, Inc. 424B5 12/19/2017Prospectus Supplement Page(  ABOUT THIS PROSPECTUS SUPPLEMENT S-11 )CAUTIONARY NOTE REGARDING FORWARD-LOOKING S-2  STATEMENTS% PROSPECTUS SUPPLEMENT SUMMARY S-4  THE OFFERING S-6 RISK FACTORS S-9USE OF PROCEEDS S-39*"RATIO OF EARNINGS TO FIXED CHARGES S-40 DESCRIPTION OF THE NOTES S-417/MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS S-54PLAN OF DISTRIBUTION S-59CONFLICTS OF INTEREST S-60EXPERTS S-61 LEGAL MATTERS S-61-%INCORPORATION OF CERTAIN DOCUMENTS BY S-61 REFERENCE$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/>0|pdH {T-EWB6=PF0*8X> @ l  x  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??Prospectus Supplement!The following is a brief summarThe following is a brief (1)The following is a brief (2)!S39 RATIO OF EARNINGS TO FIXED TABLE OF CONTENTSSELLING STOCKHOLDERSSELLING STOCKHO (1)U } 0.}        B. Riley Financial, Inc. 424B5 12/19/2017 Prospectus Page& ABOUT B. RILEY FINANCIAL, INC.~   RISK FACTORS~  . &SPECIAL NOTE REGARDING FORWARD-LOOKING~   STATEMENTS' DETERMINATION OF OFFERING PRICE~ USE OF PROCEEDS~ SECURITIES WE MAY OFFER~ $DESCRIPTION OF CAPITAL STOCK~ DESCRIPTION OF WARRANTS~ &DESCRIPTION OF DEBT SECURITIES~ DESCRIPTION OF UNITS~ 6SELLING STOCKHOLDERS~ 6PLAN OF DISTRIBUTION~ J LEGAL MATTERS~ VEXPERTS~ V+#WHERE YOU CAN FIND MORE INFORMATION~ Z-%INCORPORATION OF CERTAIN DOCUMENTS BY~ Z REFERENCE$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/BX{oSf= m?^ =PF0*8X> @ l  Y"&0 8  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??Prospectus Supplement ProspectusThe following is a brief (1)The following is a brief (2)!S39 RATIO OF EARNINGS TO FIXED TABLE OF CONTENTSSELLING STOCKHOLDERSSELLING STOCKHO (1)U } %} > Y      B. Riley Financial, Inc. 424B5 12/19/2017kcThe following is a brief summary of some of the terms of the offering and is qualified in its entirIssuer B. Riley Financial, Inc.    Notes Offered- %Up to $19,000,000 aggregate principal 4 ,amount of 7.25% Notes due 2027, 7.50% Senior 1 )Notes due 2027 and 7.50% Senior Notes due ~ 2*The 7.25% 2027 Notes, 7.50% 2027 Notes and/'2021 Notes offered hereby are a further1)issuance of, form of a single series with3+and will have the same terms as the Initial2*7.25% 2027 Notes, Initial 7.50% 2027 Notes-%and Initial 2021 Notes, respectively.Manner of offering1)?At the market? offering that may be made5-from time to time through the Agent, as sales/'agent, subject to our instruction as to4,amount and timing. The Agent is not required0(to sell any specific principal amount of4,the Notes, but the Agent will make all sales-%using commercially reasonable efforts.&consistent with its normal trading and0(sales practices on mutually agreed terms<4between the Agent and us. See ?Plan of Distribution?Dl:."~:FC+TO !"#$%&'()*+,-./0123456789:;<=>?   on page S-59.!!""#Maturity4#,The 7.25% 2027 Notes will mature on December$2$*31, 2027, the 7.50% 2027 Notes will mature%7%/on May 31, 2027, and the 2021 Notes will mature&1&)on October 31, 2021, each unless redeemed''prior to maturity.((')Interest Rate and Payment Dates1))7.25% interest per annum on the principal*0*(amount of the 7.25% 2027 Notes and 7.50%+2+*interest per annum on the principal amount,6,.of each of the 7.50% 2027 Notes and 2021 Notes-1-)will accrue from the most recent interest...&payment date immediately preceding the/1/)date of issuance of the 7.25% 2027 Notes,060.7.50% 2027 Notes and 2021 Notes, respectively,141,except that Notes purchased after the record242,dates noted below, but prior to the interest3/3'payment date immediately following such434+record date (or if settlement of a purchase535+of Notes otherwise occurs after such record636+date but prior to the interest payment date707(immediately following such record date),848,such Notes will not begin to accrue interest939+until the interest payment date immediately:0:(following such record date. The interest;2;*payable on each interest payment date will<6<.be paid only to holders of record of the Notes=5=-at the close of business on January 31, April>3>+30, July 31 and October 31 of each year, as?.?&the case may be, immediately precedingD@ l_kSq+k%^UL@ABCDEFGHIJKLMNOPQRSTUVWX@-@%the applicable interest payment date.A1A)As a general matter, holders of the NotesB4B,will not be entitled to receive any paymentsC5C-of principal on the Notes prior to the statedDDmaturity date.EEF Guarantors FNone.GGHRanking:H2The Notes will be our senior unsecured obligationsI4I,and will rank equal in right of payment withJ7J/all of our existing and future senior unsecuredK,K$and unsubordinated indebtedness. TheL.L&Notes will be effectively subordinatedM1M)to all of our existing and future securedN/N'indebtedness to the extent of the valueO1O)of the assets securing such indebtedness.P3P+The Notes will be structurally subordinatedQ/Q'to all existing and future indebtednessR7R/(including trade payables) of our subsidiaries.SSTU$V____________________________1W)Created by Morningstar Document Research.0X(http://documentresearch.morningstar.com/6>|+d&e"xlD=PF0*8X> @XXWWVV l  OCM]R  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??Prospectus Supplement Prospectus!The following is a brief summarThe following is a brief (2)!S39 RATIO OF EARNINGS TO FIXED TABLE OF CONTENTSSELLING STOCKHOLDERSSELLING STOCKHO (1)U } $} : O      B. Riley Financial, Inc. 424B5 12/19/2017kcThe following is a brief summary of some of the terms of the offering and is qualified in its entir.&The indenture governing the Notes does 1 )not limit the amount of indebtedness that 3 +we or our subsidiaries may incur or whether / 'any such indebtedness can be secured by   our assets.  Optional Redemption4,We may redeem the 7.25% 2027 Notes, in whole2*or in part, on or after December 31, 2020,2*the 7.50% 2027 Notes, in whole or in part,5-on or after May 31, 2020, and the 2021 Notes,4,in whole or in part, on or after October 31,1)2018, at our option, at any time and from2*time to time, prior to maturity at a price0(equal to 100% of their principal amount,0(plus accrued and unpaid interest to, but.&excluding, the date of redemption. See80?Description of the Notes ? Optional Redemption?for additional details. Sinking Fund4,The Notes will not be subject to any sinking0(fund (i.e., no amounts will be set aside1)by us to ensure repayment of the Notes at maturity).Dl:."TAv5s5V !"#$%&'()*+,-./0123456789:;<=>? Use of Proceeds1 )We expect to use the net proceeds of this!0!(offering for general corporate purposes.""See ?Use of Proceeds.?##$Events of Default0$(Events of default generally will include%0%(failure to pay principal, failure to pay&/&'interest, failure to observe or perform'3'+any other covenant or warranty in the Notes(/('or in the indenture, and certain events)4),of bankruptcy, insolvency or reorganization.*1*)See ?Description of the Notes ? Events of++ Default.?,,-Certain Covenants5--The indenture that governs the Notes contains.-.%certain covenants, including, but not///'limited to, restrictions on our ability000(to merge or consolidate with or into any131+other entity. See ?Description of the Notes22 ? Covenants.?334No Financial Covenants04(The indenture relating to the Notes does5(5 not contain financial covenants.667Additional Notes07(We may create and issue additional notes828*ranking equally and ratably with the 7.25%939+2027 Notes, 7.50% 2027 Notes and 2021 Notes:0:(in all respects, so that such additional;/;'notes will constitute and form a single</<'series with the 7.25% 2027 Notes, 7.50%=1=)2027 Notes and 2021 Notes, as applicable,>2>*and will have the same terms as to status,?1?)redemption or otherwise (except the priceD lpB*ZS2H2P O@ABCDEFGHIJKLMN@5@-to public, the issue date and, if applicable,A2A*the initial interest payment date) as suchB0B(Notes; provided that any such additionalC2C*notes that are not fungible with the NotesD5D-for United States federal income tax purposesE)E!may have a separate CUSIP number.FFG Defeasance3G+The Notes are subject to legal and covenantH1H)defeasance by us. See ?Description of theI1I)Notes ? Defeasance? for more information.JK$L____________________________1M)Created by Morningstar Document Research.0N(http://documentresearch.morningstar.com/"Cy9yazR=PF0*8X> @NNMMLL l  (&^L`  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??Prospectus Supplement Prospectus!The following is a brief summarThe following is a brief (1)!S39 RATIO OF EARNINGS TO FIXED TABLE OF CONTENTSSELLING STOCKHOLDERSSELLING STOCKHO (1)U } } $ (      B. Riley Financial, Inc. 424B5 12/19/2017kcThe following is a brief summary of some of the terms of the offering and is qualified in its entirTrustee'U.S. Bank National Association.    Governing Law1 )The Notes and the indenture governing the 1 )Notes will be governed by the laws of the  State of New York.   Risk Factors7/An investment in the Notes involves significant7/risks. Please refer to ?Risk Factors? beginning2*on page S-9 and other information included7/or incorporated by reference in this prospectus2*supplement and the accompanying prospectus80for a discussion of factors you should carefully/'consider before investing in the Notes.Conflicts of Interest;3B. Riley FBR is an affiliate of B. Riley Financial,2*Inc. and, as such, may be deemed to have a/'?conflict of interest? in this offering0(of Notes within the meaning of Financial5-Industry Regulatory Authority, Inc. (?FINRA?).&Rule 5121. Consequently, this offering0(of Notes will be conducted in compliance/'with the provisions of FINRA Rule 5121.3+B. Riley FBR may not make sales of Notes in1)this offering to any of its discretionaryD< l:."r1UBI G !"#$%&' 3 +accounts without the prior written approval!!of the account holder."""#$$%____________________________1&)Created by Morningstar Document Research.0'(http://documentresearch.morningstar.com/k_S+=PF0*8X> @''&&%%!!     l  n  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??Prospectus Supplement Prospectus!The following is a brief summarThe following is a brief (1)The following is a brief (2)TABLE OF CONTENTSSELLING STOCKHOLDERSSELLING STOCKHO (1)U } m)} $ }  } $} $ }  } $} $ } } $} $ }  } $} $ }  } $} $ }  } $} $ }  } $       B. Riley Financial, Inc. 424B5 12/19/2017/'S-39 RATIO OF EARNINGS TO FIXED CHARGESNine Months Ended  Year Ended December 31,    September 30,  ~   ~   ~   ~ ~  ~ z  ~ v  ~ r  Earnings (loss) ~   ~ r  ~ NO  ~ =  ~   ~ 6E  ~ ~   Fixed charges ~ .Q  ~   ~ 2  ~    ~   ~ )  ~ ( * "Ratio of earnings to fixed charges   HzG@ x   ףp= '@ x   (\2@ x   Q^8@ x   Q x   (\? x   Q@ xCoverage deficiency ? ?    ?   ?~  ? ?$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/, |vj^RvS-!=PF0*8X> @                     l  .y  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??Prospectus Supplement Prospectus!The following is a brief summarThe following is a brief (1)The following is a brief (2)!S39 RATIO OF EARNINGS TO FIXED SELLING STOCKHOLDERSSELLING STOCKHO (1)U } 0.}        B. Riley Financial, Inc. 424B5 12/19/2017TABLE OF CONTENTS Page& ABOUT B. RILEY FINANCIAL, INC.~   RISK FACTORS~  . &SPECIAL NOTE REGARDING FORWARD-LOOKING~   STATEMENTS' DETERMINATION OF OFFERING PRICE~ USE OF PROCEEDS~ SECURITIES WE MAY OFFER~ $DESCRIPTION OF CAPITAL STOCK~ DESCRIPTION OF WARRANTS~ &DESCRIPTION OF DEBT SECURITIES~ DESCRIPTION OF UNITS~ 6SELLING STOCKHOLDERS~ 6PLAN OF DISTRIBUTION~ J LEGAL MATTERS~ VEXPERTS~ V+#WHERE YOU CAN FIND MORE INFORMATION~ Z-%INCORPORATION OF CERTAIN DOCUMENTS BY~ Z REFERENCE$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/BXthL_6f8 W=PF0*8X> @ l  /  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??Prospectus Supplement Prospectus!The following is a brief summarThe following is a brief (1)The following is a brief (2)!S39 RATIO OF EARNINGS TO FIXED TABLE OF CONTENTSSELLING STOCKHO (1)U } 6} $ } a/} $ } $} $ } } $ } a/} $ }  } $ } $} $ } $} $ /      B. Riley Financial, Inc. 424B5 12/19/2017SELLING STOCKHOLDERSSelling Stockholder/'Broker-dealer / Broker-dealer AffiliateFootnote, if any1)Shares of Common Stock Beneficially Owned  . &Percentage of Outstanding Common Stock /'Shares of Common Stock Being Offered in1)Shares of Common Stock Beneficially Owned.&Percentage of Outstanding Common Stock         Before This Offering  / 'Beneficially Owned Before This Offering   This Offering  (  upon Completion of This Offering  - %Beneficially Owned upon Completion of            ~           This Offering (1)(2)4 ,Acquirors pursuant to the Purchase Agreement                        ~  John A. Fichthorn  ?  ~    ~ Ҏ   *  ~ Ҏ    ?    ? 2*Acquirors pursuant to the Merger Agreement     ~ !Albert May Alexander, Jr. ?~ ~  V9    * ~ V9 ? ?Philip Auerbach ?~  b    * ~ b ? ?Charles Wallace Berry~ ~      * ~  ? ?Stephen Bonnema ?~ ~  (    * ~ ( ? ?4,Anthony J. Bove III (IRA), WFCS as Custodian ?~      * ~  ? ?Robert J. Brous ?~  N    * ~ N ? ?1)Chad D. Champion (IRA), WFCS as Custodian ?~  .     * ~ .  ? ?.&D. Keith Cole (IRA), WFCS as Custodian ?~  :    * ~ : ? ? Bruce Durkee ?~      * ~  ? ?Juliet Songy Durkee~      * ~  ? ?2*Brian Scott Freed (IRA), WFCS as Custodian~  "    * ~ " ? ?1)Lawrence J. Gaia (IRA), WFCS as Custodian ?~  &    * ~ & ? ?3+Larry J. Goldsmith (IRA), WFCS as Custodian ?~  ^    * ~ ^ ? ?,$James Gould (IRA), WFCS as Custodian~      * ~  ? ?Russell Paul Green ?~      * ~  ? ?David Seth Gurievsky ?~ ~      * ~  ? ?D l}qefgY_-3P= !"#$%&'()*+,-.  Thomas Hadley  ?      ~    *  ~     ?    ? !James Edward Harwood IV!!!!~ !!!!~ !  ! !  ! *! !~ ! !!! !?!!! !?!"James Walker Hays IV" "?""~ """"~ " *" "  " *" "~ "*""" "?""" "?"5#-Haywood H. Henderson (IRA), WFCS as Custodian########~ # # #  # *# #~ #### #?### #?#3$+Stephen C. Iskalis (IRA), WFCS as Custodian$ $?$$$$$$~ $ B$ $  $ *$ $~ $B$$$ $?$$$ $?$.%&Joseph C. Koch (IRA), FCC as Custodian% %?%%%%%%~ % % %  % *% %~ %%%% %?%%% %?%0&(Daniel P. O?Neil (IRA), FCC as Custodian& &?&&&&&&~ & & &  & *& &~ &&&& &?&&& &?&3'+Robin Olin Oegerle (IRA), WFCS as Custodian''''''''~ '  ' '  ' *' '~ ' ''' '?''' '?'-(%Todd A. Onda (IRA), WFCS as Custodian( (?((((((~ ( ( (  ( *( (~ (((( (?((( (?(3)+Timothy J. Paisley (IRA), WFCS as Custodian) )?))))))~ ) ) )  ) *) )~ )))) )?))) )?)*+$,____________________________1-)Created by Morningstar Document Research.0.(http://documentresearch.morningstar.com/"7s)jV^=PF0*8X> @j ..--,,       l  $  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??Prospectus Supplement Prospectus!The following is a brief summarThe following is a brief (1)The following is a brief (2)!S39 RATIO OF EARNINGS TO FIXED TABLE OF CONTENTSSELLING STOCKHOLDERSU } 0} $ } a/} $ } U} $ } } $ } a/} $ }  } $ }  } $ } $} $ $      B. Riley Financial, Inc. 424B5 12/19/2017SELLING STOCKHOLDERSSelling Stockholder/'Broker-dealer / Broker-dealer AffiliateFootnote, if any1)Shares of Common Stock Beneficially Owned  . &Percentage of Outstanding Common Stock /'Shares of Common Stock Being Offered in1)Shares of Common Stock Beneficially Owned.&Percentage of Outstanding Common Stock         Before This Offering  / 'Beneficially Owned Before This Offering   This Offering  (  upon Completion of This Offering  - %Beneficially Owned upon Completion of            ~           This Offering (1)(2) James A. Parrish, Jr.    ~    ~ fB   *  ~ fB    ?    ?  Scott Elliott Poore  ?  ~    ~ z   *  ~ z    ?    ?   Robert Reilly  ?      ~    *  ~     ?    ? Kathryn Lee Ridley ?~  ^    * ~ ^ ? ?/'Anthony C. Ruda (IRA), FCC as Custodian ?~      * ~  ? ?Arthur N. Seessel III~ ~  J    * ~ J ? ?/'Edward Sinnott (IRA), WFCS as Custodian~      * ~  ? ?/'Thomas Udelson (IRA), WFCS as Custodian ?~  N    * ~ N ? ?0(Becky T. Walker (IRA), WFCS as Custodian~  r    * ~ r ? ?Wenaas Kapital AS~  F    * ~ F ? ? Westco AS~  p    * ~ p ? ? Tracy Wiswall ?~      * ~  ? ?.&Alvin Wunderlich, Jr. Grandchild Trust ?~ ~  v    * ~ v ? ?Gary K. Wunderlich, Jr. ?~ ~  j     * ~  ~ z/ *$Gary K. Wunderlich III Trust ?~ ~  ~    * ~ ~ ? ?Kent Wunderlich~      * ~  ? ?'Madison Graves Wunderlich Trust ?~ ~  ~    * ~ ~ ? ?#Wunderlich Children?s Trust ?~ ~  2    * ~ 2 ? ?Philip R. Zanone, Jr. ?~ ~  "    * ~ " ? ?Philip R. Zanone, Sr.~  z     * ~ z  ? ?D!l}qefu,JKp/3K !"# $!____________________________1")Created by Morningstar Document Research.0#(http://documentresearch.morningstar.com/ <=PF0*8X> @j ##""!!       Root Entry FBook    !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghij