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 company's Class A common stock.
• On November 29, 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, which are derivative contracts.
• The capped calls involved a total of 33,819,573 shares and expire in tranches over a 42-day period, with automatic exercise upon expiration.
• Next Alt repaid debt to a financial institution by delivering the shares as part of the capped call settlement.

Sentiment

Score: 5

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

Risks

• The sale of a significant number of shares by a major shareholder could potentially exert downward pressure on the stock price.
• The complex nature of the capped call transactions introduces a level of financial risk and complexity.

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 financial management of a major shareholder and director, and are not necessarily indicative of broader industry trends. 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 strategy used by large shareholders to manage risk and liquidity, and the reported transactions are not unusual in the context of large institutional investors.
• The volume of shares sold is significant but not unusual for a 10% owner managing their position.

Stakeholder Impact

• The share sales could potentially have a minor negative impact on the share price in the short term.
• The transactions do not appear to have any 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 calls, share sale, derivative securities, SEC Form 4, beneficial ownership