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 shares of Class A common stock through the exercise of capped call transactions.

Summary

• Next Alt S.a.r.l., an entity controlled by Patrick Drahi, a director and 10% owner of Altice USA, Inc., has reported the disposal of 805,227 shares of Class A common stock.
• These disposals occurred on December 2, 2024, through the exercise of existing capped call transactions.
• The shares were sold at varying prices: 268,409 shares at $23.3164, 268,409 shares at $24.5, and 268,409 shares at $25.6836.
• The capped call transactions are part of a larger agreement involving 33,819,573 shares, expiring in tranches over a 42-day period starting October 25, 2024.
• The exercise of these capped calls resulted in Next Alt repaying debt to a financial institution by delivering the shares.
• Following these transactions, Next Alt's direct holdings of Class A common stock decreased to 18,730,323 shares.

Sentiment

Score: 5

Explanation: The document is a routine disclosure of share transactions. While the disposal of shares by a major shareholder could be seen as slightly negative, it is part of a pre-existing agreement and not necessarily indicative of a negative outlook.

Negatives

• The disposal of shares by a major shareholder could be perceived negatively by the market.

Risks

• Continued exercise of capped calls could lead to further share disposals by Next Alt.
• The market may react negatively to the reduction in holdings by a major shareholder.

Future Outlook

The document does not provide specific forward-looking statements, but it implies that further share disposals may occur as the capped call transactions continue to expire.

Management Comments

• Each Reporting Person disclaims beneficial ownership of all interests reported on this Form 4 except to the extent of such Reporting Person's pecuniary interests.

Industry Context

This filing is a routine disclosure of share transactions by a major shareholder and director, which is common in publicly traded companies. The use of capped call transactions is a sophisticated financial strategy often employed by large investors.

Comparison to Industry Standards

• The use of capped call transactions is not uncommon among large shareholders seeking to manage their risk and exposure.
• Similar transactions can be seen in other companies with significant insider ownership, such as those in the telecommunications and media sectors.
• The reporting of these transactions via Form 4 is standard practice for compliance with SEC regulations.

Stakeholder Impact

• Shareholders may react to the reduction in holdings by a major shareholder.
• The transactions may have a minor impact on the share price.

Next Steps

• Continued monitoring of the expiration of the remaining capped call tranches.
• Potential further share disposals by Next Alt as the capped calls expire.

Key Dates

Keywords

Altice USA, Next Alt S.a.r.l., Patrick Drahi, capped call, share disposal, Form 4, derivative securities, shareholder, director