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 from 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 Altice USA Class A common stock on November 12, 2024.
• The sales were executed in three tranches at prices of $23.3164, $24.5, and $25.6836 per share.
• These transactions were related to the expiration of existing capped call transactions, which required Next Alt to deliver shares to a financial institution.
• The capped calls are part of a larger set of transactions covering 33,819,573 shares, expiring in tranches over a 42-day period starting October 25, 2024.
• The shares were used to repay debt incurred in connection with the execution of the capped calls.

Sentiment

Score: 5

Explanation: The document is neutral in sentiment, detailing a routine transaction related to capped calls. While the share sales could be seen as negative, they are a consequence of a pre-existing financial arrangement.

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 the 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 any specific forward-looking statements, but it implies that further share sales may occur as the remaining capped call tranches expire.

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

This filing is related to the financial activities of a major shareholder in a publicly traded company, which is a common occurrence. The use of capped calls is a sophisticated financial strategy often employed by large investors.

Comparison to Industry Standards

• Capped call transactions are a relatively common hedging strategy used by large shareholders to manage risk and potential dilution.
• The share sales are a consequence of the capped call expirations, which is a standard process in such transactions.
• The reporting of these transactions via SEC Form 4 is a standard regulatory requirement for insiders.

Stakeholder Impact

• Shareholders may experience some downward pressure on the stock price due to the share sales.
• The company is not directly impacted by the transactions, as they are between a shareholder and a financial institution.

Next Steps

• Further share sales are expected as the remaining capped call tranches expire over the next 42 trading days.

Key Dates

Keywords

Altice USA, Next Alt S.a.r.l., Patrick Drahi, Capped Calls, Share Sale, Director, 10% Owner, Class A Common Stock, Derivative Securities