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

Next Alt S.a.r.l., a significant shareholder of Altice USA, executed share sales and capped call transactions, resulting in a change in beneficial ownership.

Summary

• Next Alt S.a.r.l., an indirect holding company controlled by Patrick Drahi, sold 268,410 shares of Altice USA Class A common stock at three different prices: $23.3164, $24.5, and $25.6836 per share on December 13, 2024.
• These sales were related to the expiration of existing capped call transactions.
• The capped calls, which involved a total of 33,819,573 shares, are automatically exercised upon expiration and require Next Alt to deliver shares to a financial institution counterparty.
• The number of shares delivered depends on the settlement price relative to the lower and higher strike prices of the capped calls.
• Next Alt repaid debt to the financial institution by delivering the shares, which were valued at the prices set forth in Table I of the document.

Sentiment

Score: 5

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

Risks

• The complex nature of the capped call transactions and their settlement could introduce operational risks.
• The share sales by a major shareholder could potentially impact the market price of Altice USA stock.

Management Comments

• Next Alt S.a.r.l. is an indirect wholly-owned and controlled personal holding company of Patrick Drahi.
• 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

The transactions are related to the financial management of a major shareholder and do not directly reflect the operational performance of Altice USA. Capped call transactions are a common strategy used by large shareholders to manage risk and liquidity.

Comparison to Industry Standards

• Capped call transactions are a common financial instrument used by large shareholders to manage risk and liquidity, similar to those used by other major shareholders in publicly traded companies.
• The share sales are a normal part of the settlement process for these types of transactions, and the prices are within the range of typical market fluctuations.

Stakeholder Impact

• The share sales by a major shareholder could potentially impact the market price of Altice USA stock, affecting shareholders.
• The transactions do not appear to have a direct impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

Altice USA, Next Alt S.a.r.l., Patrick Drahi, Capped Calls, Share Sales, Beneficial Ownership, Derivative Securities, SEC Form 4