[FWP] MicroSectors Energy 3x Leveraged ETNs Free Writing Prospectus
Bank of Montreal (BMO) is offering auto-callable Market Linked Securities tied to the lowest performing share among Advanced Micro Devices (AMD), Amazon.com (AMZN) and Alphabet Class A (GOOGL). Each security has a $1,000 face amount, will be priced on July 18 2025 and issued on July 23 2025.
Early call feature: if on the July 23 2026 call date the lowest-performing Underlier closes at or above 90 % of its starting value, the notes are automatically redeemed for $1,000 plus a call premium of at least 25.35 %. Investors then forgo all further upside.
At maturity (July 21 2028) if not called:
- Upside: 200 % participation in any gain of the worst Underlier.
- Contingent absolute return: if that Underlier ends ≤ its start but ≥ 55 %, holders receive a positive payout equal to the absolute decline (maximum 45 %).
- Downside: if it finishes below 55 %, investors are fully exposed to the loss and can lose up to 100 % of principal.
Bank of Montreal (BMO) offre titoli Market Linked auto-richiami legati all'azione con la performance più bassa tra Advanced Micro Devices (AMD), Amazon.com (AMZN) e Alphabet Classe A (GOOGL). Ogni titolo ha un valore nominale di 1.000 $, sarà quotato il 18 luglio 2025 e emesso il 23 luglio 2025.
Caratteristica di richiamo anticipato: se alla data di richiamo del 23 luglio 2026 l'azione con la performance più bassa chiude a o sopra il 90% del suo valore iniziale, i titoli vengono automaticamente rimborsati a 1.000 $ più un premio di richiamo di almeno il 25,35%. Gli investitori rinunciano così a qualsiasi ulteriore rialzo.
Alla scadenza (21 luglio 2028), se non richiamati:
- Rendimento positivo: partecipazione al 200% di qualsiasi guadagno dell'azione peggiore.
- Rendimento assoluto condizionato: se quell’azione termina ≤ al valore iniziale ma ≥ al 55%, i detentori ricevono un pagamento positivo pari al calo assoluto (massimo 45%).
- Rischio ribassista: se chiude sotto il 55%, gli investitori sono esposti completamente alla perdita e possono perdere fino al 100% del capitale.
Bank of Montreal (BMO) ofrece valores Market Linked auto-llamables vinculados a la acción con peor desempeño entre Advanced Micro Devices (AMD), Amazon.com (AMZN) y Alphabet Clase A (GOOGL). Cada valor tiene un valor nominal de $1,000, se valorará el 18 de julio de 2025 y se emitirá el 23 de julio de 2025.
Función de llamada anticipada: si en la fecha de llamada del 23 de julio de 2026 la acción con peor desempeño cierra en o por encima del 90% de su valor inicial, los bonos se redimen automáticamente por $1,000 más una prima de llamada de al menos el 25.35%. Los inversores renuncian a cualquier ganancia adicional.
Al vencimiento (21 de julio de 2028), si no son llamados:
- Ganancia: participación del 200% en cualquier ganancia de la acción con peor desempeño.
- Retorno absoluto contingente: si esa acción termina ≤ su valor inicial pero ≥ 55%, los tenedores reciben un pago positivo igual a la caída absoluta (máximo 45%).
- Riesgo a la baja: si cierra por debajo del 55%, los inversores están completamente expuestos a la pérdida y pueden perder hasta el 100% del principal.
뱅크 오브 몬트리올(BMO)은 Advanced Micro Devices(AMD), Amazon.com(AMZN), Alphabet Class A(GOOGL) 중 가장 성과가 낮은 주식에 연동된 자동 상환 가능 마켓 링크 증권을 제공합니다. 각 증권의 액면가는 $1,000이며, 2025년 7월 18일에 가격이 책정되고 2025년 7월 23일에 발행됩니다.
조기 상환 기능: 2026년 7월 23일 상환일에 가장 성과가 낮은 기초자산이 시작 가치의 90% 이상으로 마감될 경우, 해당 노트는 $1,000과 최소 25.35%의 상환 프리미엄과 함께 자동으로 상환됩니다. 투자자는 이후 추가 상승 기회를 포기하게 됩니다.
만기(2028년 7월 21일) 시 상환되지 않은 경우:
- 상승 참여: 가장 낮은 성과를 보인 기초자산의 상승분에 대해 200% 참여.
- 조건부 절대 수익: 해당 기초자산이 시작가 이하이지만 55% 이상일 경우, 보유자는 최대 45%의 절대 하락폭에 해당하는 긍정적 지급을 받습니다.
- 하락 위험: 55% 미만으로 마감할 경우, 투자자는 원금 손실에 전적으로 노출되며 최대 100% 손실 가능성이 있습니다.
La Banque de Montréal (BMO) propose des titres Market Linked auto-remboursables liés à l'action la moins performante parmi Advanced Micro Devices (AMD), Amazon.com (AMZN) et Alphabet Classe A (GOOGL). Chaque titre a une valeur nominale de 1 000 $, sera valorisé le 18 juillet 2025 et émis le 23 juillet 2025.
Option de remboursement anticipé : si, à la date de remboursement anticipé du 23 juillet 2026, l'action la moins performante clôture à au moins 90 % de sa valeur initiale, les titres sont automatiquement remboursés à 1 000 $ plus une prime d'au moins 25,35 %. Les investisseurs renoncent alors à tout gain supplémentaire.
À l'échéance (21 juillet 2028), si non remboursés :
- Participation à la hausse : participation à hauteur de 200 % à toute hausse de l'action la moins performante.
- Rendement absolu conditionnel : si cette action termine ≤ sa valeur initiale mais ≥ 55 %, les détenteurs reçoivent un paiement positif égal à la baisse absolue (maximum 45 %).
- Risque à la baisse : si elle clôture en dessous de 55 %, les investisseurs sont exposés à la perte totale et peuvent perdre jusqu'à 100 % du capital.
Die Bank of Montreal (BMO) bietet auto-kündbare Market Linked Securities an, die an die am schlechtesten performende Aktie von Advanced Micro Devices (AMD), Amazon.com (AMZN) und Alphabet Klasse A (GOOGL) gekoppelt sind. Jede Schuldverschreibung hat einen Nennwert von 1.000 $, wird am 18. Juli 2025 bepreist und am 23. Juli 2025 ausgegeben.
Frühzeitige Rückrufoption: Wenn die am schlechtesten performende Basisaktie am Rückruftag, dem 23. Juli 2026, bei mindestens 90 % ihres Anfangswerts schließt, werden die Notes automatisch zum Nennwert von 1.000 $ zuzüglich einer Rückrufprämie von mindestens 25,35 % zurückgezahlt. Anleger verzichten damit auf weitere Kursgewinne.
Bei Fälligkeit (21. Juli 2028), falls nicht zurückgerufen:
- Aufwärtspotenzial: 200 % Beteiligung an jeglicher Wertsteigerung der schlechtesten Basisaktie.
- Kontingente absolute Rendite: Liegt der Schlusskurs dieser Aktie ≤ ihrem Anfangswert, aber ≥ 55 %, erhalten Anleger eine positive Auszahlung entsprechend dem absoluten Rückgang (maximal 45 %).
- Abwärtsrisiko: Schließt die Aktie unter 55 %, tragen Anleger den vollständigen Verlust und können bis zu 100 % des Kapitals verlieren.
- 200 % upside participation if notes reach maturity without being called
- Minimum 25.35 % call premium potentially realized after only one year
- Contingent absolute return delivers positive payout on declines up to 45 %
- Principal at risk below 55 % downside threshold; losses can reach 100 %
- Upside is capped if the notes are automatically called after one year
- No periodic interest payments, reducing total return in flat markets
- Estimated initial value ($969.80) below face, reflecting embedded costs
- No exchange listing and limited secondary market liquidity
- Unsecured credit exposure to Bank of Montreal
Insights
TL;DR: High upside leverage but deep principal risk; call feature caps gains after year 1.
The 200 % participation rate and 25 %+ one-year call premium provide attractive headline returns, yet investors face multiple layers of risk. The absolute-return buffer only protects down to a 45 % drop; below that, losses are linear. Because payoff depends solely on the worst performer, cross-correlation among AMD, AMZN and GOOGL increases downside probability. Lack of coupon, wide agent spread and an estimated value 3 % below issue price make carry costly. Absence of exchange listing further limits exit options. Overall, risk/reward skews neutral: strong upside if not called, but probability-weighted outcomes hinge on one-year performance of three volatile tech stocks.
Bank of Montreal (BMO) offre titoli Market Linked auto-richiami legati all'azione con la performance più bassa tra Advanced Micro Devices (AMD), Amazon.com (AMZN) e Alphabet Classe A (GOOGL). Ogni titolo ha un valore nominale di 1.000 $, sarà quotato il 18 luglio 2025 e emesso il 23 luglio 2025.
Caratteristica di richiamo anticipato: se alla data di richiamo del 23 luglio 2026 l'azione con la performance più bassa chiude a o sopra il 90% del suo valore iniziale, i titoli vengono automaticamente rimborsati a 1.000 $ più un premio di richiamo di almeno il 25,35%. Gli investitori rinunciano così a qualsiasi ulteriore rialzo.
Alla scadenza (21 luglio 2028), se non richiamati:
- Rendimento positivo: partecipazione al 200% di qualsiasi guadagno dell'azione peggiore.
- Rendimento assoluto condizionato: se quell’azione termina ≤ al valore iniziale ma ≥ al 55%, i detentori ricevono un pagamento positivo pari al calo assoluto (massimo 45%).
- Rischio ribassista: se chiude sotto il 55%, gli investitori sono esposti completamente alla perdita e possono perdere fino al 100% del capitale.
Bank of Montreal (BMO) ofrece valores Market Linked auto-llamables vinculados a la acción con peor desempeño entre Advanced Micro Devices (AMD), Amazon.com (AMZN) y Alphabet Clase A (GOOGL). Cada valor tiene un valor nominal de $1,000, se valorará el 18 de julio de 2025 y se emitirá el 23 de julio de 2025.
Función de llamada anticipada: si en la fecha de llamada del 23 de julio de 2026 la acción con peor desempeño cierra en o por encima del 90% de su valor inicial, los bonos se redimen automáticamente por $1,000 más una prima de llamada de al menos el 25.35%. Los inversores renuncian a cualquier ganancia adicional.
Al vencimiento (21 de julio de 2028), si no son llamados:
- Ganancia: participación del 200% en cualquier ganancia de la acción con peor desempeño.
- Retorno absoluto contingente: si esa acción termina ≤ su valor inicial pero ≥ 55%, los tenedores reciben un pago positivo igual a la caída absoluta (máximo 45%).
- Riesgo a la baja: si cierra por debajo del 55%, los inversores están completamente expuestos a la pérdida y pueden perder hasta el 100% del principal.
뱅크 오브 몬트리올(BMO)은 Advanced Micro Devices(AMD), Amazon.com(AMZN), Alphabet Class A(GOOGL) 중 가장 성과가 낮은 주식에 연동된 자동 상환 가능 마켓 링크 증권을 제공합니다. 각 증권의 액면가는 $1,000이며, 2025년 7월 18일에 가격이 책정되고 2025년 7월 23일에 발행됩니다.
조기 상환 기능: 2026년 7월 23일 상환일에 가장 성과가 낮은 기초자산이 시작 가치의 90% 이상으로 마감될 경우, 해당 노트는 $1,000과 최소 25.35%의 상환 프리미엄과 함께 자동으로 상환됩니다. 투자자는 이후 추가 상승 기회를 포기하게 됩니다.
만기(2028년 7월 21일) 시 상환되지 않은 경우:
- 상승 참여: 가장 낮은 성과를 보인 기초자산의 상승분에 대해 200% 참여.
- 조건부 절대 수익: 해당 기초자산이 시작가 이하이지만 55% 이상일 경우, 보유자는 최대 45%의 절대 하락폭에 해당하는 긍정적 지급을 받습니다.
- 하락 위험: 55% 미만으로 마감할 경우, 투자자는 원금 손실에 전적으로 노출되며 최대 100% 손실 가능성이 있습니다.
La Banque de Montréal (BMO) propose des titres Market Linked auto-remboursables liés à l'action la moins performante parmi Advanced Micro Devices (AMD), Amazon.com (AMZN) et Alphabet Classe A (GOOGL). Chaque titre a une valeur nominale de 1 000 $, sera valorisé le 18 juillet 2025 et émis le 23 juillet 2025.
Option de remboursement anticipé : si, à la date de remboursement anticipé du 23 juillet 2026, l'action la moins performante clôture à au moins 90 % de sa valeur initiale, les titres sont automatiquement remboursés à 1 000 $ plus une prime d'au moins 25,35 %. Les investisseurs renoncent alors à tout gain supplémentaire.
À l'échéance (21 juillet 2028), si non remboursés :
- Participation à la hausse : participation à hauteur de 200 % à toute hausse de l'action la moins performante.
- Rendement absolu conditionnel : si cette action termine ≤ sa valeur initiale mais ≥ 55 %, les détenteurs reçoivent un paiement positif égal à la baisse absolue (maximum 45 %).
- Risque à la baisse : si elle clôture en dessous de 55 %, les investisseurs sont exposés à la perte totale et peuvent perdre jusqu'à 100 % du capital.
Die Bank of Montreal (BMO) bietet auto-kündbare Market Linked Securities an, die an die am schlechtesten performende Aktie von Advanced Micro Devices (AMD), Amazon.com (AMZN) und Alphabet Klasse A (GOOGL) gekoppelt sind. Jede Schuldverschreibung hat einen Nennwert von 1.000 $, wird am 18. Juli 2025 bepreist und am 23. Juli 2025 ausgegeben.
Frühzeitige Rückrufoption: Wenn die am schlechtesten performende Basisaktie am Rückruftag, dem 23. Juli 2026, bei mindestens 90 % ihres Anfangswerts schließt, werden die Notes automatisch zum Nennwert von 1.000 $ zuzüglich einer Rückrufprämie von mindestens 25,35 % zurückgezahlt. Anleger verzichten damit auf weitere Kursgewinne.
Bei Fälligkeit (21. Juli 2028), falls nicht zurückgerufen:
- Aufwärtspotenzial: 200 % Beteiligung an jeglicher Wertsteigerung der schlechtesten Basisaktie.
- Kontingente absolute Rendite: Liegt der Schlusskurs dieser Aktie ≤ ihrem Anfangswert, aber ≥ 55 %, erhalten Anleger eine positive Auszahlung entsprechend dem absoluten Rückgang (maximal 45 %).
- Abwärtsrisiko: Schließt die Aktie unter 55 %, tragen Anleger den vollständigen Verlust und können bis zu 100 % des Kapitals verlieren.
Filed Pursuant to Rule 433
Registration Statement No. 333-285508
|
Bank of Montreal Market Linked Securities |
 |
|
Market Linked Securities—Auto-Callable with Leveraged Upside Participation, Contingent Absolute Return and Contingent Downside Principal at Risk Securities Linked to the Lowest Performing of the Common Stock of Advanced Micro Devices, Inc., the Common Stock of Amazon.com, Inc. and the Class A Common Stock of Alphabet Inc. due July 21, 2028 Term Sheet to Preliminary Pricing Supplement dated July 7, 2025 |
|
Summary of Terms |
|
Summary of Terms (continued) |
| Issuer: | Bank of Montreal |
| Market Measures: | The common stock of Advanced Micro Devices, Inc., the common stock of Amazon.com, Inc. and the Class A common stock of Alphabet Inc. (each an “Underlier” and collectively, the “Underliers”) |
| Pricing Date*: | July 18, 2025 |
| Issue Date*: | July 23, 2025 |
Face Amount and Original Offering Price: |
$1,000 per security |
| Automatic Call: | If the closing value of the lowest performing Underlier on the call date is greater than or equal to its call threshold value, the securities will be automatically called, and on the call settlement date, investors will receive the face amount per security plus the call premium. |
| Call Date*: | July 23, 2026 |
Call Settlement Date: |
Three business days after the call date. |
| Call Premium: | At least 25.35% of the face amount (to be determined on the pricing date) |
Maturity Payment Amount (per security): |
If the securities are not automatically called: · if the ending value of the lowest performing Underlier on the final calculation day is greater than its starting value: $1,000 + ($1,000 × underlier return of the lowest performing underlier on the final calculation day × upside participation rate); · if the ending value of the lowest performing Underlier on the final calculation day is less than or equal to its starting value, but greater than or equal to its downside threshold value: $1,000 + ($1,000 × absolute value of underlier return of the lowest performing Underlier on the final calculation day); or · if the ending value of the lowest performing Underlier on the final calculation day is less than its downside threshold value: $1,000 + ($1,000 × underlier return of the lowest performing Underlier on the final calculation day) |
Stated Maturity Date*: |
July 21, 2028 |
| Lowest Performing Underlier: | For the call date or the final calculation day, the “lowest performing Underlier” will be the Underlier with the lowest underlier return on that day. |
| Starting Value: | For each Underlier, its closing value on the pricing date |
| Ending Value: | For each Underlier, its closing value on the final calculation day |
Call Threshold Value: |
For each Underlier, 90% of its starting value |
Downside Threshold Value: |
For each Underlier, 55% of its starting value |
Upside Participation Rate: |
200% |
| Underlier Return: |
With respect to an Underlier on the call date or the final calculation day: (closing value on that day – starting value) / starting value If the underlier return of an Underlier is equal to -5%, the absolute value of the underlier return for that Underlier would be +5%. |
Final Calculation Day*: |
July 18, 2028 |
| Calculation Agent: | BMO Capital Markets Corp. (“BMOCM”), an affiliate of the issuer |
| Denominations: | $1,000 and any integral multiple of $1,000 |
*subject to change
Agent Discount**: |
Up to 2.575% for Wells Fargo Securities, LLC (“WFS”). Of that agent discount, Wells Fargo Advisors (“WFA”), may receive a selling concession of up to 2.00% and a distribution expense fee of up to 0.075% |
| CUSIP: | 06376ER53 |
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***
*** assumes a call premium equal to the lowest possible call premium that may be determined on the pricing date.
If the securities are automatically called, the positive return on the securities will be limited to the call premium, and you will not participate in any appreciation of any Underlier, which may be significant. If the securities are automatically called, you will no longer have the opportunity to participate in any appreciation of any Underlier at the upside participation rate.
If the securities are not automatically called, and the ending value of the lowest performing Underlier on the final calculation day is less than its downside threshold value, you will have full downside exposure to the decrease in the value of the lowest performing Underlier on the final calculation day from its starting value and will lose more than 45%, and possibly all, of the face amount of your securities at maturity.
On the date of the accompanying preliminary pricing supplement, the estimated initial value of the securities is $969.80 per security. The estimated initial value of the securities at pricing may differ from this value but will not be less than $919.00 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/927971/000121465925010082/u73251424b2.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, 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 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 45%, And Possibly All, Of The Face Amount Of Your Securities At Maturity. |
| · | If The Securities Are Automatically Called, Your Return Will Be Limited To The Call Premium. |
| · | Any Positive Return Based On The Depreciation Of The Lowest Performing Underlier On The Final Calculation Day Is Effectively Capped. |
| · | 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 The Call Date Or The Final Calculation Day, As Applicable, 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 Will Be Subject To Reinvestment Risk. |
| · | The Securities Do Not Pay Interest. |
| · | 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
| · | Whether The Securities Will Be Automatically Called And The Maturity Payment Amount 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 | The Securities May Become Linked To The Common Stock Of A Company Other Than The Original Underlying Stock Issuers. |
| o | We Cannot Control Actions By An Underlying Stock Issuer. |
| o | We And Our Affiliates Have No Affiliation With Any Underlying Stock Issuer And Have Not Independently Verified Their Public Disclosure Of Information. |
| o | You Have Limited Anti-dilution Protection. |
| · | The Securities Will Be Subject To Single Stock Risk. |
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.
2
FAQ
When can the Bank of Montreal Market Linked Securities be called early?
What is the minimum call premium investors may receive?
How much upside participation do the securities offer at maturity?
What happens if the worst Underlier falls more than 45 % by maturity?
Will the securities pay any interest during the term?
Is there an active secondary market for these securities?
