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 from capped call transactions.

Summary

• Next Alt S.a.r.l., an indirect wholly-owned holding company of Patrick Drahi, sold 805,230 shares of Altice USA Class A common stock on December 6, 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, requiring Next Alt to deliver shares to a financial institution.
• The capped calls are part of a larger transaction involving 33,819,573 shares, expiring in tranches over 42 trading days.
• Next Alt used the share sales to repay debt incurred when the capped calls were initially executed.
• Patrick Drahi, a director of Altice USA, is associated with Next Alt and disclaims beneficial ownership except for his pecuniary interests.

Sentiment

Score: 5

Explanation: The document is a routine disclosure of share sales related to derivative transactions. It doesn't indicate any significant positive or negative sentiment, but the share sales could be seen as slightly negative.

Risks

• The ongoing expiration of capped calls could lead to further share sales by Next Alt.
• The share sales could potentially put downward pressure on the stock price.

Future Outlook

The document indicates that capped calls will continue to expire in tranches over a 42 trading day period, suggesting further share sales may occur.

Management Comments

• Next Alt disclaims beneficial ownership of the reported interests except to the extent of its pecuniary interests.
• Patrick Drahi disclaims beneficial ownership of the reported interests except to the extent of his pecuniary interests.

Industry Context

This filing is a routine disclosure of transactions by a major shareholder, which is common in the context of publicly traded companies and their reporting requirements.

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 a relatively common strategy for managing risk and hedging positions, particularly among large shareholders.
• The disclosure of these transactions is consistent with regulatory requirements for transparency in financial markets.

Stakeholder Impact

• Shareholders may experience some downward pressure on the stock price due to the share sales.
• The financial institution counterparty to the capped calls is impacted by the share delivery.

Next Steps

• Monitor future Form 4 filings for further transactions related to the capped calls.
• Observe the impact of these share sales on the stock price.

Key Dates

Keywords

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