Form 4: Altice USA Director Next Alt S.a.r.l. Sells 805,230 Shares to Repay Debt from Capped Call Transactions

Next Alt S.a.r.l., a 10% owner and director of Altice USA, Inc., sold 805,230 shares of Class A common stock on December 24, 2024, to repay debt incurred from capped call transactions.

Summary

• On December 24, 2024, Next Alt S.a.r.l., an indirect wholly-owned and controlled personal holding company of Patrick Drahi, sold 805,230 shares of Altice USA, Inc. 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 varying prices: 268,410 shares at $23.3164, 268,410 shares at $24.5, and 268,410 shares at $25.6836.
• The sales were used to repay debt to a financial institution incurred in connection with the execution of the capped calls.
• Following the transactions, Next Alt S.a.r.l. directly owns 5,846,652 shares of Class A common stock.
• Patrick Drahi, also a director of Altice USA, disclaims beneficial ownership of the reported interests except to the extent of his pecuniary interests.
• The capped calls expire in equal tranches over a 42 scheduled trading day period, beginning October 25, 2024, and are automatically exercised upon expiration.

Sentiment

Score: 5

Explanation: The sentiment is neutral. The document reports a transaction related to capped calls, which is a planned financial activity. There are no explicit positive or negative implications for the company's future performance.

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

Sales by significant shareholders are often monitored closely by the market as they can indicate the shareholder's view of the company's prospects. In this case, the sale is tied to capped call transactions, which adds context to the move.

Comparison to Industry Standards

• Capped call transactions are a common strategy used by companies and major shareholders to hedge against potential stock dilution or to monetize existing equity positions.
• Similar transactions have been undertaken by other companies with concentrated ownership structures.
• The specific terms of the capped calls (strike prices, expiration dates) would need to be compared to industry benchmarks to assess their favorability.

Stakeholder Impact

• The sale of shares by a major shareholder could potentially create short-term price volatility.
• The repayment of debt using the proceeds from the share sale could be viewed positively by creditors.

Key Dates