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, disposed of 805,227 Class A common shares through the exercise of capped call transactions.

Summary

• Next Alt S.a.r.l., a company controlled by Patrick Drahi, who is a director and 10% owner of Altice USA, disposed of 805,227 Class A common shares.
• The shares were disposed of through the exercise of existing capped call transactions with a financial institution.
• These capped calls are part of a larger transaction involving 33,819,573 shares and expire in tranches over a 42-day period.
• The shares were delivered to the financial institution to repay debt incurred when the capped calls were executed.
• The transactions occurred on November 13, 2024, at prices ranging from $23.3164 to $25.6836 per share.
• After these transactions, Next Alt still beneficially owns 28,393,047 Class A common shares directly and 22,546,395 shares indirectly through call options.

Sentiment

Score: 5

Explanation: The document describes a routine transaction related to existing financial arrangements. There is no indication of positive or negative sentiment, it is a neutral event.

Risks

• The exercise of capped calls and the subsequent sale of shares by a major shareholder could potentially create downward pressure on the stock price.
• The complex nature of the capped call transactions may introduce uncertainty for investors.

Future Outlook

The capped calls expire in tranches over a 42-day period, suggesting further similar transactions may occur.

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. However, it highlights the use of complex financial instruments like capped calls in managing large shareholdings.

Comparison to Industry Standards

• Capped call transactions are a relatively common strategy for large shareholders to manage risk and monetize their holdings without directly selling shares on the open market.
• The specific details of the capped call transactions, such as the strike prices and expiration dates, are not publicly available, making a direct comparison to other similar transactions difficult.
• The size of the transaction, involving over 33 million shares, is significant and indicates the scale of Next Alt's investment in Altice USA.

Stakeholder Impact

• The share disposal may have a minor impact on the stock price.
• The transaction is unlikely to have a significant impact on other stakeholders.

Next Steps

• Further tranches of the capped calls will expire over the next 42 trading days.
• Next Alt may continue to adjust its holdings based on the terms of the capped call agreements.

Key Dates

Keywords

Altice USA, Next Alt S.a.r.l., Patrick Drahi, Capped Calls, Share Disposal, Class A Common Stock, Derivative Securities, Stockholder Agreement, Director, 10% Owner