Form 4: Altice USA Director Next Alt S.a.r.l. Sells 805,227 Shares to Repay Debt from Capped Call Transactions

Next Alt S.a.r.l., a 10% owner and director of Altice USA, Inc., sold 805,227 shares of Class A common stock on October 29, 2024, to repay debt incurred from capped call transactions.

Summary

• On October 29, 2024, Next Alt S.a.r.l., an indirect wholly-owned and controlled personal holding company of Patrick Drahi, sold 805,227 shares of Altice USA, Inc.'s Class A common stock.
• The sales were executed in connection with the exercise and expiration of existing bilateral European capped call transactions.
• The shares were sold at prices of $23.3164, $24.5, and $25.6836.
• Next Alt repaid debt to a financial institution incurred in connection with the execution of the Capped Calls by delivering the shares.
• Following the transactions, Next Alt beneficially owns 37,250,544 shares of Class A common stock.
• Next Alt is party to capped call transactions with a financial institution counterparty with respect to a total of 33,819,573 shares of Class A common stock of the Issuer.
• The Capped Calls expire in equal tranches over a 42 scheduled trading day period, beginning October 25, 2024 and are automatically exercised upon expiration.
• Patrick Drahi, a director of Altice USA, disclaims beneficial ownership of the reported interests except to the extent of his pecuniary interests.

Sentiment

Score: 5

Explanation: The document is a standard regulatory filing related to stock transactions. The sentiment is neutral as it primarily reports facts without expressing opinions or predictions.

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.

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

Capped call transactions are often used by companies or major shareholders to hedge against potential stock dilution or to raise capital. The unwinding of these transactions can create selling pressure on the stock.

Comparison to Industry Standards

• Comparable transactions would include similar Form 4 filings by major shareholders or company insiders involving the exercise or expiration of derivative securities.
• It is common for large shareholders to use derivatives like capped calls to manage their exposure to the company's stock.

Stakeholder Impact

• The sale of shares by a major shareholder could potentially create short-term selling pressure on the stock, impacting shareholders.
• The unwinding of capped call transactions could have implications for the financial institution counterparty involved.

Key Dates