Form 4: Altice USA Director and 10% Owner, Next Alt S.a.r.l., Executes Share Disposals and Capped Call Transactions

Next Alt S.a.r.l., a significant shareholder and director of Altice USA, executed share disposals and capped call transactions involving Class A common stock.

Summary

• Next Alt S.a.r.l., an indirect holding company controlled by Patrick Drahi, disposed of 268,409 shares of Altice USA Class A common stock at three different prices on November 18, 2024.
• The disposals were related to the expiration of existing capped call transactions.
• These capped calls involved a total of 33,819,573 shares of Class A common stock and expire in tranches over a 42-day period starting October 25, 2024.
• The capped calls are automatically exercised upon expiration, requiring Next Alt to deliver shares to the counterparty based on a formula involving strike prices and settlement prices.
• The shares were delivered to repay debt incurred in connection with the execution of the capped calls.

Sentiment

Score: 5

Explanation: The document is a routine SEC filing detailing share disposals related to capped call expirations. It doesn't indicate a significant positive or negative sentiment, but the reduction in shareholding could be viewed slightly negatively.

Negatives

• Next Alt S.a.r.l. reduced its holdings of Altice USA Class A common stock through share disposals.

Risks

• The expiration of capped calls and associated share disposals could create downward pressure on the stock price.
• The complex nature of the capped call transactions may introduce uncertainty for investors.

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 reflects the ongoing financial activities of a major shareholder in Altice USA, which is common in the telecommunications and media industry. Capped call transactions are often used by large shareholders to manage risk and liquidity.

Comparison to Industry Standards

• Capped call transactions are a common strategy used by large shareholders in publicly traded companies to manage their exposure and liquidity.
• The share disposals are not unusual for a 10% owner and director, and are often part of a pre-planned strategy.
• Similar transactions can be seen in other companies with large institutional or insider ownership.

Stakeholder Impact

• Shareholders may react to the share disposals, potentially impacting the stock price.
• 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, Class A common stock, capped call, share disposal, derivative securities, beneficial ownership, SEC Form 4