[FWP] MicroSectors Energy 3x Leveraged ETNs Free Writing Prospectus
Bank of Montreal has filed a prospectus for Market Linked Securities tied to the performance of three major indices: Nasdaq-100, Russell 2000, and S&P 500. These auto-callable securities, due July 7, 2028, offer contingent coupon payments and feature contingent downside principal risk.
Key features include:
- Face amount of $1,000 per security
- Monthly contingent coupon rate of at least 8.60% per annum
- Automatic call feature if lowest performing index exceeds starting value
- Downside threshold value set at 70% of starting value
- Estimated initial value of $967.20 per security
Notable risks include potential loss of principal if the lowest performing index falls below threshold, no guaranteed coupon payments, and exposure to the worst-performing index regardless of other indices' performance. Securities will not be listed on any exchange, limiting liquidity options for investors.
Bank of Montreal ha presentato un prospetto per titoli collegati al mercato basati sulla performance di tre principali indici: Nasdaq-100, Russell 2000 e S&P 500. Questi titoli auto-rimborso, con scadenza il 7 luglio 2028, offrono pagamenti di cedole condizionali e prevedono un rischio di perdita del capitale condizionato al ribasso.
Caratteristiche principali includono:
- Valore nominale di 1.000$ per titolo
- Tasso cedolare mensile condizionale di almeno 8,60% annuo
- Funzione di richiamo automatico se l’indice con la performance più bassa supera il valore iniziale
- Soglia di rischio ribassista fissata al 70% del valore iniziale
- Valore iniziale stimato di 967,20$ per titolo
I rischi principali includono la possibile perdita del capitale se l’indice con la performance più bassa scende sotto la soglia, l’assenza di garanzia sui pagamenti delle cedole e l’esposizione all’indice peggiore indipendentemente dalla performance degli altri indici. I titoli non saranno quotati in alcun mercato, limitando le opzioni di liquidità per gli investitori.
Bank of Montreal ha presentado un prospecto para Valores Vinculados al Mercado relacionados con el desempeño de tres índices principales: Nasdaq-100, Russell 2000 y S&P 500. Estos valores autocancelables, con vencimiento el 7 de julio de 2028, ofrecen pagos de cupones contingentes y presentan riesgo condicional sobre el capital principal.
Características clave incluyen:
- Importe nominal de $1,000 por valor
- Tasa de cupón mensual contingente de al menos 8.60% anual
- Función de llamada automática si el índice con peor desempeño supera el valor inicial
- Umbral de caída establecido en 70% del valor inicial
- Valor inicial estimado de $967.20 por valor
Los riesgos destacados incluyen la posible pérdida de capital si el índice con peor desempeño cae por debajo del umbral, la ausencia de pagos garantizados de cupones y la exposición al índice con peor desempeño sin importar el desempeño de los otros índices. Los valores no estarán listados en ninguna bolsa, lo que limita las opciones de liquidez para los inversores.
뱅크 오브 몬트리올은 세 가지 주요 지수인 나스닥-100, 러셀 2000, S&P 500의 성과에 연계된 시장 연동 증권에 대한 투자설명서를 제출했습니다. 이 자동 콜 가능 증권은 2028년 7월 7일 만기이며, 조건부 쿠폰 지급과 조건부 원금 하락 위험을 포함합니다.
주요 특징은 다음과 같습니다:
- 증권당 액면가 $1,000
- 연 최소 8.60%의 월별 조건부 쿠폰율
- 최저 성과 지수가 시작가를 초과할 경우 자동 콜 기능
- 하락 임계값은 시작가의 70%
- 증권당 예상 초기 가치 $967.20
주요 위험 요소로는 최저 성과 지수가 임계값 아래로 떨어질 경우 원금 손실 가능성, 쿠폰 지급 보장 없음, 그리고 다른 지수와 관계없이 최악의 성과 지수에 노출된다는 점이 있습니다. 이 증권들은 어떤 거래소에도 상장되지 않아 투자자의 유동성 옵션이 제한됩니다.
Bank of Montreal a déposé un prospectus pour des titres liés au marché basés sur la performance de trois indices majeurs : Nasdaq-100, Russell 2000 et S&P 500. Ces titres à remboursement automatique, arrivant à échéance le 7 juillet 2028, offrent des paiements de coupons conditionnels et comportent un risque conditionnel sur le capital en cas de baisse.
Caractéristiques clés :
- Montant nominal de 1 000 $ par titre
- Taux de coupon mensuel conditionnel d’au moins 8,60 % par an
- Option de remboursement automatique si l’indice le moins performant dépasse la valeur initiale
- Seuil de baisse fixé à 70 % de la valeur initiale
- Valeur initiale estimée à 967,20 $ par titre
Risques notables : perte potentielle du capital si l’indice le moins performant descend en dessous du seuil, absence de garantie des paiements de coupons, et exposition à l’indice le moins performant quelle que soit la performance des autres indices. Ces titres ne seront pas cotés en bourse, limitant ainsi les options de liquidité pour les investisseurs.
Bank of Montreal hat einen Prospekt für marktgebundene Wertpapiere eingereicht, die an die Entwicklung von drei wichtigen Indizes gebunden sind: Nasdaq-100, Russell 2000 und S&P 500. Diese automatisch kündbaren Wertpapiere mit Fälligkeit am 7. Juli 2028 bieten bedingte Kuponzahlungen und beinhalten ein bedingtes Risiko auf den Kapitalbetrag bei Abwärtsbewegungen.
Wesentliche Merkmale umfassen:
- Nennwert von 1.000 $ pro Wertpapier
- Monatlicher bedingter Kuponzins von mindestens 8,60 % p.a.
- Automatische Kündigungsfunktion, wenn der am schlechtesten performende Index den Startwert übersteigt
- Abwärts-Schwellenwert von 70 % des Startwerts
- Geschätzter Anfangswert von 967,20 $ pro Wertpapier
Wesentliche Risiken beinhalten den möglichen Kapitalverlust, falls der am schlechtesten performende Index unter die Schwelle fällt, keine garantierten Kuponzahlungen und die Exponierung gegenüber dem schlechtesten Index unabhängig von der Performance der anderen Indizes. Die Wertpapiere werden an keiner Börse notiert sein, was die Liquiditätsmöglichkeiten für Anleger einschränkt.
- Offers high contingent coupon rate of at least 8.60% per annum, providing potential for attractive yield
- Monthly coupon payment frequency provides regular income potential if conditions are met
- Automatic call feature provides early exit opportunity if any underlying performs well
- 70% downside protection barrier offers some cushion against market decline
- High risk of principal loss - investors can lose more than 30% or all of their investment if worst-performing index falls below threshold
- No participation in upside performance of the indices - returns are capped at coupon payments
- Complex worst-of structure exposes investors to the poorest performing of three indices
- Contingent coupons may not be paid if any underlying falls below 70% threshold
- Estimated initial value ($967.20) is significantly below the offering price ($1,000), indicating substantial embedded costs
- Lack of secondary market liquidity as securities will not be listed on any exchange
Bank of Montreal ha presentato un prospetto per titoli collegati al mercato basati sulla performance di tre principali indici: Nasdaq-100, Russell 2000 e S&P 500. Questi titoli auto-rimborso, con scadenza il 7 luglio 2028, offrono pagamenti di cedole condizionali e prevedono un rischio di perdita del capitale condizionato al ribasso.
Caratteristiche principali includono:
- Valore nominale di 1.000$ per titolo
- Tasso cedolare mensile condizionale di almeno 8,60% annuo
- Funzione di richiamo automatico se l’indice con la performance più bassa supera il valore iniziale
- Soglia di rischio ribassista fissata al 70% del valore iniziale
- Valore iniziale stimato di 967,20$ per titolo
I rischi principali includono la possibile perdita del capitale se l’indice con la performance più bassa scende sotto la soglia, l’assenza di garanzia sui pagamenti delle cedole e l’esposizione all’indice peggiore indipendentemente dalla performance degli altri indici. I titoli non saranno quotati in alcun mercato, limitando le opzioni di liquidità per gli investitori.
Bank of Montreal ha presentado un prospecto para Valores Vinculados al Mercado relacionados con el desempeño de tres índices principales: Nasdaq-100, Russell 2000 y S&P 500. Estos valores autocancelables, con vencimiento el 7 de julio de 2028, ofrecen pagos de cupones contingentes y presentan riesgo condicional sobre el capital principal.
Características clave incluyen:
- Importe nominal de $1,000 por valor
- Tasa de cupón mensual contingente de al menos 8.60% anual
- Función de llamada automática si el índice con peor desempeño supera el valor inicial
- Umbral de caída establecido en 70% del valor inicial
- Valor inicial estimado de $967.20 por valor
Los riesgos destacados incluyen la posible pérdida de capital si el índice con peor desempeño cae por debajo del umbral, la ausencia de pagos garantizados de cupones y la exposición al índice con peor desempeño sin importar el desempeño de los otros índices. Los valores no estarán listados en ninguna bolsa, lo que limita las opciones de liquidez para los inversores.
뱅크 오브 몬트리올은 세 가지 주요 지수인 나스닥-100, 러셀 2000, S&P 500의 성과에 연계된 시장 연동 증권에 대한 투자설명서를 제출했습니다. 이 자동 콜 가능 증권은 2028년 7월 7일 만기이며, 조건부 쿠폰 지급과 조건부 원금 하락 위험을 포함합니다.
주요 특징은 다음과 같습니다:
- 증권당 액면가 $1,000
- 연 최소 8.60%의 월별 조건부 쿠폰율
- 최저 성과 지수가 시작가를 초과할 경우 자동 콜 기능
- 하락 임계값은 시작가의 70%
- 증권당 예상 초기 가치 $967.20
주요 위험 요소로는 최저 성과 지수가 임계값 아래로 떨어질 경우 원금 손실 가능성, 쿠폰 지급 보장 없음, 그리고 다른 지수와 관계없이 최악의 성과 지수에 노출된다는 점이 있습니다. 이 증권들은 어떤 거래소에도 상장되지 않아 투자자의 유동성 옵션이 제한됩니다.
Bank of Montreal a déposé un prospectus pour des titres liés au marché basés sur la performance de trois indices majeurs : Nasdaq-100, Russell 2000 et S&P 500. Ces titres à remboursement automatique, arrivant à échéance le 7 juillet 2028, offrent des paiements de coupons conditionnels et comportent un risque conditionnel sur le capital en cas de baisse.
Caractéristiques clés :
- Montant nominal de 1 000 $ par titre
- Taux de coupon mensuel conditionnel d’au moins 8,60 % par an
- Option de remboursement automatique si l’indice le moins performant dépasse la valeur initiale
- Seuil de baisse fixé à 70 % de la valeur initiale
- Valeur initiale estimée à 967,20 $ par titre
Risques notables : perte potentielle du capital si l’indice le moins performant descend en dessous du seuil, absence de garantie des paiements de coupons, et exposition à l’indice le moins performant quelle que soit la performance des autres indices. Ces titres ne seront pas cotés en bourse, limitant ainsi les options de liquidité pour les investisseurs.
Bank of Montreal hat einen Prospekt für marktgebundene Wertpapiere eingereicht, die an die Entwicklung von drei wichtigen Indizes gebunden sind: Nasdaq-100, Russell 2000 und S&P 500. Diese automatisch kündbaren Wertpapiere mit Fälligkeit am 7. Juli 2028 bieten bedingte Kuponzahlungen und beinhalten ein bedingtes Risiko auf den Kapitalbetrag bei Abwärtsbewegungen.
Wesentliche Merkmale umfassen:
- Nennwert von 1.000 $ pro Wertpapier
- Monatlicher bedingter Kuponzins von mindestens 8,60 % p.a.
- Automatische Kündigungsfunktion, wenn der am schlechtesten performende Index den Startwert übersteigt
- Abwärts-Schwellenwert von 70 % des Startwerts
- Geschätzter Anfangswert von 967,20 $ pro Wertpapier
Wesentliche Risiken beinhalten den möglichen Kapitalverlust, falls der am schlechtesten performende Index unter die Schwelle fällt, keine garantierten Kuponzahlungen und die Exponierung gegenüber dem schlechtesten Index unabhängig von der Performance der anderen Indizes. Die Wertpapiere werden an keiner Börse notiert sein, was die Liquiditätsmöglichkeiten für Anleger einschränkt.
Filed Pursuant to Rule 433
Registration Statement No. 333-285508
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Bank of Montreal Market Linked Securities |
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Market Linked Securities—Auto-Callable with Contingent Coupon and Contingent Downside Principal at Risk Securities Linked to the Lowest Performing of the Nasdaq-100 Index®, the Russell 2000® Index and the S&P 500® Index due July 7, 2028 Term Sheet to Preliminary Pricing Supplement dated June 23, 2025 |
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Summary of Terms |
Summary of Terms (continued) |
| Issuer: | Bank of Montreal |
| Market Measures: | The Nasdaq-100 Index®, the Russell 2000® Index and the S&P 500® Index (each referred to as an “Underlier,” and collectively as the “Underliers”). |
| Pricing Date*: | July 1, 2025 |
| Issue Date*: | July 7, 2025 |
| Face Amount and Original Offering Price: |
$1,000 per security |
| Contingent Coupon Payments: |
On each contingent coupon payment date, unless the securities have been automatically called, you will receive a contingent coupon payment at a per annum rate equal to the contingent coupon rate if the closing value of the lowest performing Underlier on the related calculation day is greater than or equal to its coupon threshold value. Each “contingent coupon payment,” if any, will be calculated per security as follows: ($1,000 × contingent coupon rate)/12. |
| Contingent Coupon Payment Dates: |
Monthly, on the third business day following each calculation day; provided that the contingent coupon payment date with respect to the final calculation day will be the stated maturity date |
| Contingent Coupon Rate: |
At least 8.60% per annum, to be determined on the pricing date |
| Automatic Call: | If the closing value of the lowest performing Underlier on any of the calculation days scheduled to occur from January 2026 to June 2028, inclusive, is greater than or equal to its starting value, the securities will be automatically called, and on the related call settlement date, you will be entitled to receive a cash payment per security in U.S. dollars equal to the face amount plus a final contingent coupon payment |
| Call Settlement Date: | Three business days after the applicable calculation day |
| Calculation Days*: | Monthly, on the 1st day of each month, commencing August 2025 and ending June 2028, and July 3, 2028 (the “final calculation day”) |
| Maturity Payment Amount (per security): |
If the securities are not automatically called prior to the stated maturity date: · if the ending value of the lowest performing Underlier on the final calculation day is greater than or equal to its downside threshold value: $1,000; or · if the ending value of the lowest performing Underlier on the final calculation day is less than its downside threshold value: $1,000 × performance factor of the lowest performing Underlier on the final calculation day |
| Stated Maturity Date*: | July 7, 2028 |
| Lowest Performing Underlier: |
For any calculation day, the “lowest performing Underlier” will be the Underlier with the lowest performance factor on that calculation day |
| Performance Factor: | With respect to an Underlier on any calculation day, its closing value on such day divided by its starting value (expressed as a percentage) |
| Starting Value: | With respect to each Underlier, its closing value on the pricing date |
| Ending Value: | With respect to each Underlier, its closing value on the final calculation day |
| Coupon Threshold Value: |
With respect to each Underlier, 70% of its starting value |
| Downside Threshold Value: |
With respect to each Underlier, 70% of its starting value |
| Calculation Agent: | BMO Capital Markets Corp., an affiliate of the issuer |
| Denominations: | $1,000 and any integral multiple of $1,000 |
| *subject to change | |
| Agent Discount**: | Up to 2.325% for Wells Fargo Securities, LLC (“WFS”). Of that agent discount, Wells Fargo Advisors (“WFA”), may receive a selling concession of up to 1.75% and a distribution expense fee of up to 0.075% |
| CUSIP: | 06376ELP5 |
| Material Tax Consequences: |
See the preliminary pricing supplement |
** In addition, selected dealers may receive a fee of up to 0.30% for marketing and other services.
Hypothetical Payout Profile (maturity payment amount)
If the securities are not automatically called prior to stated maturity and the ending value of the lowest performing Underlier on the final calculation day is less than its downside threshold value, you will lose more than 30%, and possibly all, of the face amount of your securities at stated maturity.
Any return on the securities will be limited to the sum of your contingent coupon payments, if any. You will not participate in any appreciation of any Underlier, but you will have full downside exposure to the lowest performing Underlier on the final calculation day if the ending value of that Underlier is less than its downside threshold value.
On the date of the accompanying preliminary pricing supplement, the estimated initial value of the securities is $967.20 per security. The estimated initial value of the securities at pricing may differ from this value but will not be less than $920.00 per security. However, as discussed in more detail in the accompanying preliminary pricing supplement, the actual value of the securities at any time will reflect many factors and cannot be predicted with accuracy. See “Estimated Value of the Securities” in the accompanying preliminary pricing supplement.
Preliminary Pricing Supplement: sec.gov/Archives/edgar/data/927971/000121465925009495/z623250424b2.htm
The securities have complex features and investing in the securities involves risks not associated with an investment in conventional debt securities. See “Selected Risk Considerations” in this term sheet and the accompanying preliminary pricing supplement and “Risk Factors” in the accompanying product supplement.
This introductory term sheet does not provide all of the information that an investor should consider prior to making an investment decision.
Investors should carefully review the accompanying preliminary pricing supplement, product supplement, underlying supplement, prospectus supplement and prospectus before making a decision to invest in the securities.
NOT A BANK DEPOSIT AND NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY
Selected Risk Considerations
The risks set forth below are discussed in detail in the “Selected Risk Considerations” section in the accompanying preliminary pricing supplement and the “Risk Factors” section in the accompanying product supplement. Please review those risk disclosures carefully.
Risks Relating To The Securities Generally
| · | If The Securities Are Not Automatically Called Prior To Stated Maturity, You May Lose Some Or All Of The Face Amount Of Your Securities At Stated Maturity. |
| · | The Securities Do Not Provide For Fixed Payments Of Interest And You May Receive No Contingent Coupon Payments On One Or More Contingent Coupon Payment Dates, Or Even Throughout The Entire Term Of The Securities. |
| · | The Securities Are Subject To The Full Risks Of Each Underlier And Will Be Negatively Affected If Any Underlier Performs Poorly, Even If The Other Underliers Perform Favorably. |
| · | Your Return On The Securities Will Depend Solely On The Performance Of The Underlier That Is The Lowest Performing Underlier On Each Calculation Day, And You Will Not Benefit In Any Way From The Performance Of The Better Performing Underliers. |
| · | You Will Be Subject To Risks Resulting From The Relationship Among The Underliers. |
| · | You May Be Fully Exposed To The Decline In The Lowest Performing Underlier On The Final Calculation Day From Its Starting Value, But Will Not Participate In Any Positive Performance Of Any Underlier. |
| · | Higher Contingent Coupon Rates Are Associated With Greater Risk. |
| · | You Will Be Subject To Reinvestment Risk. |
| · | The Securities Are Subject To Credit Risk. |
| · | The U.S. Federal Income Tax Consequences Of An Investment In The Securities Are Unclear. |
| · | The Stated Maturity Date May Be Postponed If The Final Calculation Day Is Postponed. |
Risks Relating To The Estimated Value Of The Securities And Any Secondary Market
| · | The Estimated Value Of The Securities On The Pricing Date, Based On Our Proprietary Pricing Models, Will Be Less Than The Original Offering Price. |
| · | The Terms Of The Securities Are Not Determined By Reference To The Credit Spreads For Our Conventional Fixed-Rate Debt. |
| · | The Estimated Value Of The Securities Is Not An Indication Of The Price, If Any, At Which WFS Or Any Other Person May Be Willing To Buy The Securities From You In The Secondary Market. |
| · | The Value Of The Securities Prior To Stated Maturity Will Be Affected By Numerous Factors, Some Of Which Are Related In Complex Ways. |
| · | The Securities Will Not Be Listed On Any Securities Exchange And We Do Not Expect A Trading Market For The Securities To Develop. |
Risks Relating To The Underliers
| · | Any Payments On The Securities And Whether The Securities Are Automatically Called Will Depend Upon The Performance Of The Underliers And Therefore The Securities Are Subject To The Following Risks, Each As Discussed In More Detail In The Accompanying Product Supplement. |
| o | Investing In The Securities Is Not The Same As Investing In The Underliers. |
| o | Historical Values Of The Underliers Should Not Be Taken As An Indication Of The Future Performance Of The Underliers During The Term Of The Securities. |
| o | Changes That Affect The Underliers May Adversely Affect The Value Of The Securities And Any Payments On The Securities. |
| o | We Cannot Control Actions By Any Of The Unaffiliated Companies Whose Securities Are Included In The Underliers. |
| o | We And Our Affiliates Have No Affiliation With Any Underlier Sponsor And Have Not Independently Verified Their Public Disclosure Of Information. |
| · | The Securities Are Subject To Risks Relating To Non-U.S. Securities With Respect To The Nasdaq-100 Index®. |
| · | The Securities Are Subject To Small-Capitalization Companies Risk With Respect To The Russell 2000® Index. |
Risks Relating To Conflicts Of Interest
| · | Our Economic Interests And Those Of Any Dealer Participating In The Offering Are Potentially Adverse To Your Interests. |
The Issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this document relates. Before you invest, you should read the prospectus in that registration statement and the other documents that the Issuer has filed with the SEC for more complete information about us and this offering. You may obtain these documents free of charge by visiting the SEC’s website at http://www.sec.gov. Alternatively, the Issuer will arrange to send to you the prospectus (as supplemented by the prospectus supplement) if you request it by calling the Issuer’s agent toll-free at 1-877-369-5412.
Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.
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FAQ
What are the key features of WTIU's Market Linked Securities offering from June 2025?
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What is the potential loss risk for WTIU's Market Linked Securities at maturity?
What is the estimated initial value of WTIU's Market Linked Securities?
How are contingent coupon payments structured for WTIU's Market Linked Securities?
