Boyd Gaming exits this Atlantic City casino

(Borgata Atlantic City)

Boyd Gaming Corp. is selling its 50-percent stake in Atlantic City's Borgata Hotel Casino & Spa to its partner, MGM Resorts International.

The transaction is valued at $900 million, and MGM is expected to sell the Borgata's real-estate assets to the MGM Growth Properties, a real estate investment trust that splintered off from MGM's hospitality business and went public in April. Boyd is expected to receive roughly $600 million in net cash proceeds after factoring in its share of the Borgata's debt, while MGM will take on the remainder of the resort's estimated $600-million debt, with plans to refinance it.

The real estate assets to be sold to MGM Growth Properties are worth an estimated $1.175 billion. After the sale, MGM will lease back and operate the resort. The Borgata was worth $1.1 billion when it opened in 2003. 

The deal is expected to close Q3 2016.

"While we are pleased with the performance of this property, this transaction is an attractive opportunity to immediately unlock significant value for our shareholders," Boyd said in a statement.

"While the market continues to experience challenges, Borgata has outperformed and differentiated itself as the undisputed leader in the city," MGM Resorts said in a statement.