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

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

Summary

• Next Alt S.a.r.l., an indirect wholly-owned and controlled personal holding company of Patrick Drahi, sold 268,410 shares of Altice USA, Inc. Class A common stock at prices of $23.3164, $24.5, and $25.6836 on December 19, 2024.
• The sales were made to repay debt to a financial institution related to existing bilateral European capped call transactions.
• These capped calls involve a total of 33,819,573 shares of Class A common stock and expire in equal tranches over a 42-day period starting October 25, 2024.
• Next Alt still beneficially owns 8,262,342 shares of Class A common stock after the transactions.
• Next Alt also holds call options (obligation to sell) for 2,415,690 shares of Class A common stock.

Sentiment

Score: 5

Explanation: The document primarily reports transactions related to capped calls and debt repayment. It's a neutral disclosure with no clear positive or negative implications for the company's future performance.

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

Share sales by significant shareholders are common, especially when linked to structured financial instruments like capped calls. The impact on the stock price depends on the size of the sale relative to the trading volume and overall market sentiment.

Comparison to Industry Standards

• Capped call transactions are frequently used by companies to reduce potential dilution from convertible securities or stock options.
• The specific terms of the capped calls (strike prices, expiration dates) are not fully disclosed, making a precise comparison to industry benchmarks difficult.
• Similar transactions are often seen among companies with concentrated ownership structures.

Stakeholder Impact

• The share sale could have a minor impact on shareholders due to the increased supply of shares in the market.
• The repayment of debt benefits creditors by reducing the company's liabilities.

Key Dates