Moody’s: Sirius XM unaffected by acquisition

Moody's Investors Service said that Sirius XM Radio Inc.'s acquisition of Pandora Media, Inc. is not expected to impact Sirius’ existing ratings.

The company’s long-term corporate family rating is Ba3 and its outlook is stable.

Sirius recently announced that it has entered into an agreement to acquire Pandora in an all-stock transaction valued at $3.5 billion.

“While the transaction will be financed with all equity, we project leverage to increase in the near term given the assumption of Pandora's convertible notes and negative EBITDA generation,” the agency said in a news release.

“Sirius's high level of free cash flow generation is expected to be modestly impacted by Pandora's negative free cash flow.”

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