Brazil's Azul reduces $1.6 billion in debt as it concludes restructuring process

SAO PAULO (Reuters) -Brazilian airline 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 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, 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 future," Chief Executive John Rodgerson said in a press statement, adding the airline expects to receive 15 new Embraer's E2 jets during the year.

($1 = 5.8571 reais)

(Reporting by Andre Romani; additional reporting by Gabriel Araujo; Editing by Aida Pelaez-Fernandez)

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