SAO PAULO, Jan 28 (Reuters) - Brazilian airline Azul ( AZUL )

said on Tuesday it has finalized a debt restructuring

process regarding financial obligations with bondholders,

suppliers and plane lessors, according to a securities filing.

Azul ( AZUL ) said the process included the termination of almost

$1.6 billion in debt from its balance sheet, while it also

raised $525 million in fresh money.

The firm said that, with the conclusion of the talks, its

financial leverage measured by a net debt to EBITDA ratio falls

to 3.4 times from 4.8 times.

Azul ( AZUL ), which this month signed an

agreement to explore

talks for a merger with rival Gol, said the

restructuring measures reduced its interest payments expected

for this year by almost 1 billion reais ($170.7 million).

"We are very optimistic regarding Azul's ( AZUL ) future," Chief

Executive John Rodgerson said in a press statement, adding the

airline expects to receive 15 new Embraer's ( ERJ ) E2 jets

during the year.

($1 = 5.8571 reais)