Form 4: Altice USA Director Next Alt S.a.r.l. Executes Capped Calls, Repays Debt with Class A Common Stock

Next Alt S.a.r.l., a 10% owner and director of Altice USA, Inc., executed capped call transactions and repaid debt by delivering Class A common stock.

Summary

• Next Alt S.a.r.l., an indirect wholly-owned and controlled personal holding company of Patrick Drahi, a director of Altice USA, Inc., filed a Form 4.
• The form details transactions related to the exercise and expiration of capped call options and the subsequent repayment of debt.
• On December 18, 2024, Next Alt delivered 268,410 shares of Class A common stock at prices of $23.3164, $24.5, and $25.6836 per share to repay debt incurred in connection with the execution of capped calls.
• These transactions resulted in a decrease in Next Alt's holdings of Class A common stock from 9,604,392 to 9,067,572 shares.
• The capped calls are bilateral European transactions with a financial institution counterparty, covering a total of 33,819,573 shares of Class A common stock.
• The capped calls expire in equal tranches over a 42-day trading period, beginning October 25, 2024, and are automatically exercised upon expiration.

Sentiment

Score: 6

Explanation: The document is a standard SEC filing detailing transactions related to capped calls and debt repayment. It doesn't contain overtly positive or negative information, but the execution of these transactions could be interpreted as a neutral signal regarding the company's financial health and the shareholder's risk management strategy.

Future Outlook

The capped calls expire in equal tranches over a 42 scheduled trading day period, beginning October 25, 2024 and are automatically exercised upon expiration.

Industry Context

Capped call transactions are often used by companies or major shareholders to hedge against potential stock dilution or to manage risk associated with stock-based compensation programs. The execution of these transactions by Next Alt S.a.r.l. suggests a strategy to manage their exposure to Altice USA's stock price fluctuations.

Comparison to Industry Standards

• Capped call transactions are a relatively common hedging strategy employed by large shareholders and companies, particularly in the technology and telecommunications sectors.
• Comparable companies such as Charter Communications or Comcast might use similar strategies to manage their equity exposure.
• The specific terms of the capped calls (strike prices, expiration dates) would need to be compared to industry benchmarks to assess their relative favorability.

Stakeholder Impact

• The transactions may have a minor impact on shareholders due to the change in ownership structure.
• The debt repayment could be viewed positively by creditors.

Key Dates