Form 4: Altice USA Director and 10% Owner, Next Alt S.a.r.l., Disposes of Shares Through Capped Call Transactions

Next Alt S.a.r.l., a significant shareholder and director of Altice USA, Inc., disposed of 805,227 Class A common shares through the exercise of capped call transactions.

Summary

• Next Alt S.a.r.l., an indirect holding company controlled by Patrick Drahi, a director of Altice USA, Inc., disposed of 805,227 Class A common shares on December 3, 2024.
• The shares were disposed of through the exercise of existing capped call transactions with a financial institution.
• These capped calls, covering a total of 33,819,573 shares, expire in tranches over a 42-day period starting October 25, 2024, and are automatically exercised upon expiration.
• The shares were delivered to the counterparty to repay debt incurred when the capped calls were executed.
• The transactions occurred at prices of $23.3164, $24.5, and $25.6836 per share.
• Following these transactions, Next Alt's direct holdings decreased to 17,925,096 shares, and its holdings of call options decreased to 12,078,444.

Sentiment

Score: 5

Explanation: The document reflects a routine transaction related to existing financial arrangements. While a large shareholder reduced their holdings, it was expected due to the capped call expirations. The sentiment is neutral.

Negatives

• A significant shareholder, Next Alt S.a.r.l., reduced its holdings in Altice USA, Inc. through the sale of 805,227 shares.

Risks

• The continued exercise of capped calls could lead to further reductions in Next Alt's holdings of Altice USA stock.
• The market may react negatively to the reduction in holdings by a major shareholder.

Future Outlook

The capped calls will continue to expire in tranches over a 42-day period, potentially leading to further share disposals by Next Alt S.a.r.l.

Industry Context

This transaction is a specific event related to a major shareholder's financial arrangements and does not necessarily reflect broader industry trends.

Comparison to Industry Standards

• Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders and major shareholders.
• Capped call transactions are a common financial instrument used by large shareholders to manage risk and liquidity.

Stakeholder Impact

• Shareholders may react to the reduction in holdings by a major shareholder.
• The transactions do not directly impact employees, customers, or suppliers.

Next Steps

• The remaining capped calls will continue to expire over the next 42 trading days, potentially leading to further share disposals.
• Next Alt S.a.r.l. will continue to report any changes in beneficial ownership through Form 4 filings.

Key Dates

Keywords

Altice USA, Next Alt S.a.r.l., Patrick Drahi, Capped Calls, Share Disposal, Form 4, Beneficial Ownership, Director, 10% Owner