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 director and 10% owner 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 disposed of 805,227 shares of Class A common stock.
• The shares were disposed of through the exercise of existing bilateral European capped call transactions.
• These capped calls are automatically exercised upon expiration and require Next Alt to deliver shares to a financial institution counterparty.
• The transactions occurred on November 27, 2024, with shares sold at prices of $23.3164, $24.5, and $25.6836 per share.
• Following these transactions, Next Alt's direct holdings of Class A common stock decreased to 20,340,777 shares.
• Next Alt also holds call options (obligations to sell) for 14,494,125 shares of Class A common stock after these transactions.

Sentiment

Score: 5

Explanation: The document reflects a planned transaction related to existing financial instruments. While the share disposal could be seen as slightly negative, it is part of a pre-existing arrangement and not a sign of distress.

Negatives

• The sale of 805,227 shares by a major shareholder could be perceived negatively by the market.

Risks

• The exercise of capped calls and subsequent share sales could put downward pressure on the stock price.
• The complex nature of the capped call transactions may be difficult for some investors to understand.

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

Comparison to Industry Standards

• Share disposals by major shareholders are not uncommon, but the use of capped call transactions adds a layer of complexity.
• The specific details of the capped call transactions are unique to this situation and not easily comparable to standard industry practices.

Stakeholder Impact

• The share disposal could potentially impact the share price, affecting shareholders.
• The transactions do not appear to have a direct impact on employees, customers, or suppliers.

Key Dates

Keywords

Altice USA, Next Alt S.a.r.l., Patrick Drahi, Capped Calls, Share Disposal, SEC Form 4, Director, 10% Owner, Class A Common Stock