[FWP] MicroSectors Energy 3x Leveraged ETNs Free Writing Prospectus
Bank of Montreal is offering Auto-Callable Securities linked to the performance of Chevron Corporation and Exxon Mobil Corporation common stocks, due July 3, 2028. Key features include:
The securities, priced at $1,000 per unit, offer monthly contingent coupon payments at a rate of at least 10.60% per annum if the lowest-performing underlying stock closes at or above its 75% coupon threshold. The securities include a memory feature for missed payments.
- Automatic call feature triggers if the lowest-performing stock closes at or above its starting value on any monthly calculation day from December 2025 to May 2028
- At maturity, if not called earlier, investors face potential principal loss if the lowest-performing stock closes below its 70% downside threshold
- Estimated initial value is $960.00 per security, with a minimum of $920.00
Notable risks include potential loss of principal, no fixed interest payments, and exposure to the worst-performing stock. The securities will not be listed on any exchange, limiting liquidity options.
Bank of Montreal offre titoli Auto-Callable collegati alla performance delle azioni ordinarie di Chevron Corporation e Exxon Mobil Corporation, con scadenza il 3 luglio 2028. Le caratteristiche principali includono:
I titoli, quotati a 1.000 USD per unità, offrono pagamenti di cedole condizionali mensili con un tasso minimo del 10,60% annuo se l'azione sottostante con la performance più bassa chiude al di sopra o pari al 75% della soglia di cedola. I titoli prevedono una funzione di memoria per i pagamenti non effettuati.
- La funzione di richiamo automatico si attiva se l'azione con la performance più bassa chiude al di sopra o pari al valore iniziale in una qualsiasi giornata di calcolo mensile tra dicembre 2025 e maggio 2028
- Alla scadenza, se non richiamati anticipatamente, gli investitori possono subire una perdita del capitale se l'azione con la performance più bassa chiude sotto la soglia del 70%
- Il valore iniziale stimato è di 960,00 USD per titolo, con un minimo di 920,00 USD
I rischi principali includono la possibile perdita del capitale, l'assenza di pagamenti di interessi fissi e l'esposizione all'azione con la performance peggiore. I titoli non saranno quotati in alcuna borsa, limitando le opzioni di liquidità.
Bank of Montreal ofrece valores Auto-Callable vinculados al desempeño de las acciones comunes de Chevron Corporation y Exxon Mobil Corporation, con vencimiento el 3 de julio de 2028. Las características clave incluyen:
Los valores, con un precio de $1,000 por unidad, ofrecen pagos de cupones contingentes mensuales a una tasa mínima del 10.60% anual si la acción subyacente con peor desempeño cierra en o por encima del 75% del umbral del cupón. Incluyen una función de memoria para pagos omitidos.
- La característica de llamada automática se activa si la acción con peor desempeño cierra en o por encima de su valor inicial en cualquier día de cálculo mensual entre diciembre de 2025 y mayo de 2028
- Al vencimiento, si no se ha llamado antes, los inversionistas enfrentan posible pérdida de capital si la acción con peor desempeño cierra por debajo del 70% del umbral de caída
- El valor inicial estimado es de $960.00 por valor, con un mínimo de $920.00
Los riesgos importantes incluyen posible pérdida de capital, ausencia de pagos de intereses fijos y exposición a la acción con peor desempeño. Los valores no estarán listados en ninguna bolsa, limitando las opciones de liquidez.
뱅크 오브 몬트리올은 셰브런 코퍼레이션과 엑손 모빌 코퍼레이션 보통주 실적에 연동된 자동 콜 가능 증권을 2028년 7월 3일 만기일로 제공하고 있습니다. 주요 특징은 다음과 같습니다:
단위당 1,000달러에 가격이 책정된 이 증권은 최저 성과 기초 주식이 75% 쿠폰 임계값 이상으로 마감할 경우 연간 최소 10.60%의 월별 조건부 쿠폰 지급을 제공합니다. 누락된 지급에 대해 메모리 기능도 포함되어 있습니다.
- 자동 콜 기능은 2025년 12월부터 2028년 5월까지 매월 산정일 중 최저 성과 주식이 시작 가치 이상으로 마감할 경우 발동됩니다
- 만기 시 조기 콜되지 않으면, 최저 성과 주식이 70% 하락 임계값 아래로 마감할 경우 원금 손실 가능성이 있습니다
- 예상 초기 가치는 증권당 960.00달러이며, 최소 920.00달러입니다
주요 위험 요소로는 원금 손실 가능성, 고정 이자 지급 없음, 최악의 성과 주식에 대한 노출이 있으며, 이 증권은 어떠한 거래소에도 상장되지 않아 유동성 옵션이 제한됩니다.
Bank of Montreal propose des titres Auto-Callable liés à la performance des actions ordinaires de Chevron Corporation et Exxon Mobil Corporation, arrivant à échéance le 3 juillet 2028. Les caractéristiques clés incluent :
Les titres, au prix de 1 000 $ par unité, offrent des paiements de coupons conditionnels mensuels à un taux d'au moins 10,60 % par an si l'action sous-jacente la moins performante clôture à ou au-dessus de son seuil de coupon à 75 %. Les titres comportent une fonction mémoire pour les paiements manqués.
- La fonction de rappel automatique se déclenche si l'action la moins performante clôture à ou au-dessus de sa valeur initiale lors de toute journée de calcul mensuelle entre décembre 2025 et mai 2028
- À l'échéance, si le titre n'a pas été rappelé plus tôt, les investisseurs s'exposent à une perte potentielle du capital si l'action la moins performante clôture en dessous de son seuil de baisse à 70 %
- La valeur initiale estimée est de 960,00 $ par titre, avec un minimum de 920,00 $
Les risques notables incluent une perte potentielle du capital, l'absence de paiements d'intérêts fixes et une exposition à l'action la moins performante. Les titres ne seront pas cotés en bourse, limitant ainsi les options de liquidité.
Bank of Montreal bietet Auto-Callable Securities an, die an die Wertentwicklung der Stammaktien von Chevron Corporation und Exxon Mobil Corporation gekoppelt sind und am 3. Juli 2028 fällig werden. Die wichtigsten Merkmale sind:
Die Wertpapiere, zum Preis von 1.000 USD pro Einheit, bieten monatliche bedingte Kuponzahlungen mit einem Satz von mindestens 10,60 % pro Jahr, wenn die am schlechtesten performende zugrunde liegende Aktie an ihrem 75%-Kupon-Schwellenwert oder darüber schließt. Die Wertpapiere enthalten eine Memory-Funktion für verpasste Zahlungen.
- Die automatische Rückruf-Funktion wird ausgelöst, wenn die am schlechtesten performende Aktie an einem monatlichen Berechnungstag von Dezember 2025 bis Mai 2028 auf oder über ihrem Startwert schließt
- Bei Fälligkeit, falls nicht vorher zurückgerufen, besteht für Anleger ein mögliches Kapitalverlustrisiko, wenn die am schlechtesten performende Aktie unter ihrem 70%-Abschwungschwellenwert schließt
- Der geschätzte Anfangswert beträgt 960,00 USD pro Wertpapier, mit einem Minimum von 920,00 USD
Wesentliche Risiken umfassen potenziellen Kapitalverlust, keine festen Zinszahlungen und die Exponierung gegenüber der am schlechtesten performenden Aktie. Die Wertpapiere werden an keiner Börse notiert sein, was die Liquiditätsoptionen einschränkt.
- High potential yield with contingent coupon rate of at least 10.60% per annum
- Memory feature allows recovery of previously unpaid coupon payments if conditions are met
- Automatic call feature provides early exit opportunity if either stock performs well
- High risk of principal loss - investors could lose over 30% or all of their investment if lowest performing stock falls below 70% threshold
- No participation in any upside appreciation of the underlying stocks
- Complex structure with multiple barriers and conditions makes risk assessment difficult
- Estimated initial value ($960) is significantly below the offering price ($1,000), indicating substantial embedded costs
- Limited liquidity with no listing on securities exchanges and no expected trading market
Bank of Montreal offre titoli Auto-Callable collegati alla performance delle azioni ordinarie di Chevron Corporation e Exxon Mobil Corporation, con scadenza il 3 luglio 2028. Le caratteristiche principali includono:
I titoli, quotati a 1.000 USD per unità, offrono pagamenti di cedole condizionali mensili con un tasso minimo del 10,60% annuo se l'azione sottostante con la performance più bassa chiude al di sopra o pari al 75% della soglia di cedola. I titoli prevedono una funzione di memoria per i pagamenti non effettuati.
- La funzione di richiamo automatico si attiva se l'azione con la performance più bassa chiude al di sopra o pari al valore iniziale in una qualsiasi giornata di calcolo mensile tra dicembre 2025 e maggio 2028
- Alla scadenza, se non richiamati anticipatamente, gli investitori possono subire una perdita del capitale se l'azione con la performance più bassa chiude sotto la soglia del 70%
- Il valore iniziale stimato è di 960,00 USD per titolo, con un minimo di 920,00 USD
I rischi principali includono la possibile perdita del capitale, l'assenza di pagamenti di interessi fissi e l'esposizione all'azione con la performance peggiore. I titoli non saranno quotati in alcuna borsa, limitando le opzioni di liquidità.
Bank of Montreal ofrece valores Auto-Callable vinculados al desempeño de las acciones comunes de Chevron Corporation y Exxon Mobil Corporation, con vencimiento el 3 de julio de 2028. Las características clave incluyen:
Los valores, con un precio de $1,000 por unidad, ofrecen pagos de cupones contingentes mensuales a una tasa mínima del 10.60% anual si la acción subyacente con peor desempeño cierra en o por encima del 75% del umbral del cupón. Incluyen una función de memoria para pagos omitidos.
- La característica de llamada automática se activa si la acción con peor desempeño cierra en o por encima de su valor inicial en cualquier día de cálculo mensual entre diciembre de 2025 y mayo de 2028
- Al vencimiento, si no se ha llamado antes, los inversionistas enfrentan posible pérdida de capital si la acción con peor desempeño cierra por debajo del 70% del umbral de caída
- El valor inicial estimado es de $960.00 por valor, con un mínimo de $920.00
Los riesgos importantes incluyen posible pérdida de capital, ausencia de pagos de intereses fijos y exposición a la acción con peor desempeño. Los valores no estarán listados en ninguna bolsa, limitando las opciones de liquidez.
뱅크 오브 몬트리올은 셰브런 코퍼레이션과 엑손 모빌 코퍼레이션 보통주 실적에 연동된 자동 콜 가능 증권을 2028년 7월 3일 만기일로 제공하고 있습니다. 주요 특징은 다음과 같습니다:
단위당 1,000달러에 가격이 책정된 이 증권은 최저 성과 기초 주식이 75% 쿠폰 임계값 이상으로 마감할 경우 연간 최소 10.60%의 월별 조건부 쿠폰 지급을 제공합니다. 누락된 지급에 대해 메모리 기능도 포함되어 있습니다.
- 자동 콜 기능은 2025년 12월부터 2028년 5월까지 매월 산정일 중 최저 성과 주식이 시작 가치 이상으로 마감할 경우 발동됩니다
- 만기 시 조기 콜되지 않으면, 최저 성과 주식이 70% 하락 임계값 아래로 마감할 경우 원금 손실 가능성이 있습니다
- 예상 초기 가치는 증권당 960.00달러이며, 최소 920.00달러입니다
주요 위험 요소로는 원금 손실 가능성, 고정 이자 지급 없음, 최악의 성과 주식에 대한 노출이 있으며, 이 증권은 어떠한 거래소에도 상장되지 않아 유동성 옵션이 제한됩니다.
Bank of Montreal propose des titres Auto-Callable liés à la performance des actions ordinaires de Chevron Corporation et Exxon Mobil Corporation, arrivant à échéance le 3 juillet 2028. Les caractéristiques clés incluent :
Les titres, au prix de 1 000 $ par unité, offrent des paiements de coupons conditionnels mensuels à un taux d'au moins 10,60 % par an si l'action sous-jacente la moins performante clôture à ou au-dessus de son seuil de coupon à 75 %. Les titres comportent une fonction mémoire pour les paiements manqués.
- La fonction de rappel automatique se déclenche si l'action la moins performante clôture à ou au-dessus de sa valeur initiale lors de toute journée de calcul mensuelle entre décembre 2025 et mai 2028
- À l'échéance, si le titre n'a pas été rappelé plus tôt, les investisseurs s'exposent à une perte potentielle du capital si l'action la moins performante clôture en dessous de son seuil de baisse à 70 %
- La valeur initiale estimée est de 960,00 $ par titre, avec un minimum de 920,00 $
Les risques notables incluent une perte potentielle du capital, l'absence de paiements d'intérêts fixes et une exposition à l'action la moins performante. Les titres ne seront pas cotés en bourse, limitant ainsi les options de liquidité.
Bank of Montreal bietet Auto-Callable Securities an, die an die Wertentwicklung der Stammaktien von Chevron Corporation und Exxon Mobil Corporation gekoppelt sind und am 3. Juli 2028 fällig werden. Die wichtigsten Merkmale sind:
Die Wertpapiere, zum Preis von 1.000 USD pro Einheit, bieten monatliche bedingte Kuponzahlungen mit einem Satz von mindestens 10,60 % pro Jahr, wenn die am schlechtesten performende zugrunde liegende Aktie an ihrem 75%-Kupon-Schwellenwert oder darüber schließt. Die Wertpapiere enthalten eine Memory-Funktion für verpasste Zahlungen.
- Die automatische Rückruf-Funktion wird ausgelöst, wenn die am schlechtesten performende Aktie an einem monatlichen Berechnungstag von Dezember 2025 bis Mai 2028 auf oder über ihrem Startwert schließt
- Bei Fälligkeit, falls nicht vorher zurückgerufen, besteht für Anleger ein mögliches Kapitalverlustrisiko, wenn die am schlechtesten performende Aktie unter ihrem 70%-Abschwungschwellenwert schließt
- Der geschätzte Anfangswert beträgt 960,00 USD pro Wertpapier, mit einem Minimum von 920,00 USD
Wesentliche Risiken umfassen potenziellen Kapitalverlust, keine festen Zinszahlungen und die Exponierung gegenüber der am schlechtesten performenden Aktie. Die Wertpapiere werden an keiner Börse notiert sein, was die Liquiditätsoptionen 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 with Memory Feature and Contingent Downside Principal at Risk Securities Linked to the Lowest Performing of the Common Stock of Chevron Corporation and the Common Stock of Exxon Mobil Corporation due July 3, 2028 Term Sheet to Preliminary Pricing Supplement dated June 24, 2025 |
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Summary of Terms |
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Summary of Terms (continued) |
| Issuer: | Bank of Montreal |
| Market Measures: | The common stock of Chevron Corporation and the common stock of Exxon Mobil Corporation (each referred to as an “Underlier,” and collectively as the “Underliers”). |
| Pricing Date*: | June 30, 2025 |
| Issue Date*: | July 3, 2025 |
| Face Amount and Original Offering Price: |
$1,000 per security |
| Contingent Coupon Payments (with Memory Feature): |
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. In addition, if the closing value of the lowest performing Underlier on one or more calculation days is less than its coupon threshold value and, on a subsequent calculation day, the closing value of the lowest performing Underlier on that subsequent calculation day is greater than or equal to its coupon threshold value, on the contingent coupon payment date related to that subsequent calculation day, you will receive the contingent coupon payment due for that subsequent calculation day plus all previously unpaid contingent coupon payments (without interest on amounts previously unpaid). 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 10.60% 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 December 2025 to May 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 28th day of each month, commencing in July 2025 and ending in May 2028, and June 28, 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 3, 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, 75% 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: | 06376ELU4 |
| 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 either 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 $960.00 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/927971/000121465925009532/w624253424b2.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
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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 Either Underlier Performs Poorly, Even If The Other Underlier Performs 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 Underlier. |
| · | You Will Be Subject To Risks Resulting From The Relationship Between 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 Either 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 | 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 Either 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.
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FAQ
What are the key features of WTIU's Market Linked Securities offering dated June 28, 2025?
What is the downside risk protection for WTIU's Market Linked Securities?
What is the estimated initial value of WTIU's Market Linked Securities?
How are coupon payments determined for WTIU's Market Linked Securities?
What are the automatic call conditions for WTIU's Market Linked Securities?
