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

Next Alt S.a.r.l., a significant shareholder and director of Altice USA, executed transactions involving the sale of 805,227 Class A common shares and the settlement of capped call obligations.

Summary

• Next Alt S.a.r.l., an entity controlled by Patrick Drahi, a director and 10% owner of Altice USA, has reported transactions involving the sale of Class A common stock.
• On November 19, 2024, Next Alt sold a total of 805,227 shares of Class A common stock at prices ranging from $23.3164 to $25.6836 per share.
• These sales were related to the settlement of existing capped call transactions with a financial institution.
• The capped calls, which expire in tranches, required Next Alt to deliver shares of Class A common stock to the counterparty.
• The number of shares delivered was determined by the settlement price of the stock relative to the strike prices of the capped calls.
• Following these transactions, Next Alt still beneficially owns 25,172,139 shares of Class A common stock directly and 19,325,487 shares indirectly through call options.

Sentiment

Score: 5

Explanation: The document primarily reports on transactions related to existing financial obligations. There is no indication of positive or negative sentiment, it is a neutral reporting of events.

Risks

• The sale of a significant number of shares by a major shareholder could potentially exert downward pressure on the stock price.
• The complexity of the capped call transactions and their settlement terms could 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

The transactions are related to the management of existing financial obligations through derivative instruments, which is a common practice among large shareholders and investment firms.

Comparison to Industry Standards

• Capped call transactions are a common strategy used by large shareholders to manage risk and monetize their holdings.
• The specific terms of the capped calls, such as the strike prices and expiration dates, are not unusual for these types of transactions.
• The reporting of these transactions is in line with SEC regulations for insider trading and beneficial ownership.

Stakeholder Impact

• The sale of shares by a major shareholder could potentially impact the stock price, affecting other shareholders.
• The settlement of capped calls could have implications for the financial institution counterparty involved in the transactions.

Key Dates

Keywords

Altice USA, Next Alt S.a.r.l., Patrick Drahi, Class A common stock, capped calls, share sale, derivative securities, stockholder agreement, director, 10% owner