Form 4: Next Alt S.a.r.l. and Patrick Drahi Execute Share Disposals in Altice USA

Next Alt S.a.r.l., an entity controlled by Patrick Drahi, executed the sale of 805,227 shares of Altice USA Class A common stock through the exercise of capped call options.

Summary

• Next Alt S.a.r.l., a personal holding company indirectly owned and controlled by Patrick Drahi, sold 805,227 shares of Altice USA Class A common stock.
• The sales were executed on November 11, 2024, at prices ranging from $23.3164 to $25.6836 per share.
• These transactions were related to the expiration of existing capped call options held by Next Alt with a financial institution.
• The capped calls were part of a larger transaction involving 33,819,573 shares of Altice USA Class A common stock.
• The capped calls expire in tranches over a 42-day period, starting October 25, 2024, and are automatically exercised upon expiration.
• Next Alt used the shares from the capped call exercise to repay debt incurred with the financial institution when the capped calls were executed.

Sentiment

Score: 5

Explanation: The document is neutral in sentiment, as it primarily reports on transactions related to capped calls. While the share disposals could be seen as negative, they are part of a pre-existing arrangement and do not indicate a change in the company's fundamentals.

Negatives

• The sale of shares by a major shareholder could be perceived negatively by the market.

Risks

• The continued exercise of capped calls could lead to further share sales by Next Alt.
• The market may react negatively to the ongoing share disposals by a major shareholder.
• The complex nature of the capped call transactions may introduce uncertainty.

Future Outlook

The capped calls will continue to expire in tranches over the next 42 trading days, potentially leading to further share disposals.

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

This filing reflects the ongoing financial activities of a major shareholder in Altice USA, which is common in the telecommunications industry. The use of capped calls is a complex financial strategy that can impact share ownership and debt management.

Comparison to Industry Standards

• Capped call transactions are a relatively common strategy used by large shareholders to manage risk and debt, but the specific details of these transactions are unique to Altice USA and Next Alt.
• Other companies in the telecommunications sector may use similar strategies, but the scale and timing of these transactions are specific to Altice USA.
• The share disposals are a result of the expiration of these capped calls, which is a standard process for such instruments.

Stakeholder Impact

• Shareholders may be concerned about the ongoing share disposals by a major shareholder.
• The transactions could have a minor impact on the share price.

Next Steps

• The remaining capped calls will continue to expire over the next 42 trading days.
• Next Alt will likely continue to deliver shares to the financial institution as the capped calls expire.

Key Dates

Keywords

Altice USA, Next Alt S.a.r.l., Patrick Drahi, Capped Calls, Share Disposal, SEC Form 4, Derivative Securities, Stock Options