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

Next Alt S.a.r.l., a 10% owner and director of Altice USA, Inc., settled capped call transactions and repaid debt by delivering 805,227 shares of 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 filing reports transactions related to the settlement of existing bilateral European capped call transactions.
• Next Alt repaid debt to a financial institution by delivering 805,227 shares of Class A common stock on October 30, 2024.
• The shares were valued at prices ranging from $23.3164 to $25.6836.
• These transactions resulted in a decrease in Next Alt's direct holdings of Class A common stock from 36,982,135 to 36,445,317 shares.
• The capped calls expire in equal tranches over a 42 scheduled trading day period, beginning October 25, 2024, and are automatically exercised upon expiration.
• Armelle Koelf acted as attorney-in-fact for both Next Alt S.a r.l. and Patrick Drahi in these transactions.

Sentiment

Score: 5

Explanation: The document reports routine transactions related to capped calls and debt repayment. It doesn't contain information that would significantly impact investor sentiment positively or negatively.

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 dilution from convertible securities or to manage the cost of equity financing. The unwinding of these transactions can have an impact on the company's stock price.

Comparison to Industry Standards

• Capped call transactions are a relatively common hedging strategy employed by large shareholders and companies, similar to those used by entities like SoftBank when dealing with Alibaba shares.
• The size of the transaction, involving 805,227 shares, is significant but not unusual for a major shareholder like Next Alt.
• The use of a power of attorney for executing these transactions is standard practice.

Stakeholder Impact

• The transactions may have a minor impact on shareholders due to the change in the number of shares held by a major shareholder.
• The settlement of capped calls could affect the company's outstanding share count and potentially its earnings per share.

Key Dates