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 director and 10% owner of Altice USA, Inc., executed share sales and settled capped call obligations on December 9, 2024.

Summary

• Next Alt S.a.r.l., an entity controlled by Patrick Drahi, a director and 10% owner of Altice USA, Inc., sold 268,410 shares of Class A common stock at three different prices on December 9, 2024.
• The sales were executed at prices of $23.3164, $24.5, and $25.6836 per share.
• These transactions were related to the settlement of existing capped call obligations.
• Next Alt is party to capped call transactions with a financial institution covering 33,819,573 shares of Altice USA Class A common stock.
• The capped calls expire in tranches over a 42-day period, starting October 25, 2024, and are automatically exercised upon expiration.
• The settlement of these capped calls involved the delivery of shares to the counterparty to repay debt incurred when the capped calls were executed.

Sentiment

Score: 5

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

Risks

• The capped call transactions expose Next Alt to potential losses if the share price of Altice USA falls below the lower strike price.
• The automatic exercise of the capped calls could lead to further share sales by Next Alt.

Future Outlook

The capped calls will continue to expire in tranches over the next 42 trading days, potentially leading to further share sales by Next Alt.

Management Comments

• Next Alt 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

This filing reflects the ongoing management of derivative positions by a major shareholder in a publicly traded company, which is a common practice in the financial markets.

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 typical for these types of transactions.
• The reporting of these transactions via SEC Form 4 is standard practice for insiders of publicly traded companies.

Stakeholder Impact

• The share sales may have a minor impact on the stock price of Altice USA.
• The settlement of capped calls is a routine transaction and should not have a significant impact on stakeholders.

Next Steps

• Next Alt will continue to settle its capped call obligations as they expire over the next 42 trading days.
• Further SEC Form 4 filings may be expected as these transactions continue.

Key Dates

Keywords

Altice USA, Next Alt S.a.r.l., Patrick Drahi, Capped Calls, Share Sales, Derivative Securities, Director, 10% Owner, SEC Form 4