Form 4: Altice USA Director and 10% Owner Next Alt S.a.r.l. Sells Shares to Cover Capped Call Obligations

Next Alt S.a.r.l., a director and 10% owner of Altice USA, sold 805,227 shares of Class A common stock to cover obligations related to capped call transactions.

Summary

• Next Alt S.a.r.l., an entity controlled by Patrick Drahi, a director and 10% owner of Altice USA, sold 805,227 shares of Class A common stock on November 22, 2024.
• The sales were executed at varying prices: 268,409 shares at $23.3164, 268,409 shares at $24.5, and 268,409 shares at $25.6836.
• These transactions were related to the expiration of capped call options, which required Next Alt to deliver shares to a financial institution.
• The capped calls are part of a larger transaction involving 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.

Sentiment

Score: 5

Explanation: The document is neutral in tone, reporting a routine transaction. The sale of shares by a major shareholder could be seen as slightly negative, but it is part of a pre-existing agreement.

Negatives

• The sale of shares by a major shareholder could be perceived negatively by the market.

Risks

• Continued sales of shares by Next Alt due to capped call expirations could put downward pressure on the stock price.
• The complex nature of the capped call transactions may introduce uncertainty for investors.

Future Outlook

The document does not provide specific forward-looking statements, but it implies that further share sales may occur as the capped call options continue to expire.

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

This filing is a routine disclosure of insider transactions, which are common in publicly traded companies. The use of capped calls is a complex financial strategy that can be used for hedging or financing purposes.

Comparison to Industry Standards

• Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders, as mandated by the SEC.
• The use of capped call transactions is not uncommon among large shareholders seeking to manage risk or raise capital, but the specific terms and scale of these transactions can vary significantly.
• Comparable companies would also have similar filings when directors or major shareholders sell shares.

Stakeholder Impact

• Shareholders may be concerned about the potential for further share sales by Next Alt.
• The transactions do not appear to have a direct impact on employees, customers, or suppliers.

Next Steps

• Further share sales may occur as the remaining capped call options expire over the next 42 trading days.

Key Dates

Keywords

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