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 significant shareholder of Altice USA, sold 805,230 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, sold 805,230 shares of Altice USA Class A common stock on December 12, 2024.
• The sales were executed at three different prices: $23.3164, $24.5, and $25.6836 per share.
• These transactions were related to the expiration of capped call options held by Next Alt.
• The capped calls required Next Alt to deliver shares to a financial institution to repay debt incurred when the capped calls were established.
• Following these transactions, Next Alt's direct holdings decreased to 12,288,492 shares of Class A common stock.
• Next Alt also holds call options on 6,441,840 shares of Class A common stock after these transactions.

Sentiment

Score: 5

Explanation: The document is neutral, detailing a routine transaction related to derivative positions. While the sale of shares could be seen as negative, it is part of a pre-existing arrangement.

Negatives

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

Risks

• The continued unwinding of capped call positions could lead to further share sales by Next Alt.
• The market may react negatively to large share sales by major shareholders.

Future Outlook

The document does not provide specific forward-looking statements, but the ongoing expiration of capped calls suggests potential for further share sales.

Industry Context

This filing is a routine disclosure of share transactions by a major shareholder, which is common in the context of derivative positions and debt obligations. It is not unusual for large shareholders to adjust their positions based on financial instruments.

Comparison to Industry Standards

• The use of capped call transactions is a common strategy for large shareholders to manage risk and debt obligations.
• The share sales are similar to other transactions where shareholders unwind derivative positions.
• The disclosure of these transactions is in line with SEC regulations for insider trading and beneficial ownership.

Stakeholder Impact

• Shareholders may react to the share sales, potentially impacting the stock price.
• The transactions do not directly impact employees, customers, or suppliers.

Key Dates

Keywords

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