[FWP] MicroSectors Energy 3x Leveraged ETNs Free Writing Prospectus
Bank of Montreal (BMO) is marketing Auto-Callable Market Linked Securities with Contingent Coupons, Memory Feature and Contingent Downside Principal at Risk, linked to the worst performer among Apple Inc., Broadcom Inc. and McDonald’s Corporation. The $1,000-denominated notes price on 11 Jul 2025, settle on 16 Jul 2025 and mature on 14 Jul 2028 (3-year tenor unless called earlier).
Income profile: Investors receive a quarterly contingent coupon of at least 21.25 % p.a. (5.3125 % per quarter) provided the worst-performing underlier is ≥ 80 % of its starting value on the relevant calculation day. The “memory” feature adds any missed coupons once the threshold is next met.
Auto-call: From Oct 2025 to Apr 2028, if the worst performer is ≥ its starting value on a calculation day, the notes are automatically called at par plus the coupon, ending the investment early and creating reinvestment risk.
Principal repayment: If not previously called, at maturity holders receive: (i) 100 % of face if the worst performer is ≥ 70 % of its starting value; or (ii) par × performance factor of the worst performer if it is < 70 %. Investors therefore face full downside exposure below the 30 % buffer and could lose all principal.
Key structural terms: Starting values set on pricing date; coupon threshold 80 %; downside threshold 70 %; estimated initial value disclosed as $966.40 (96.64 % of face) and will not be less than $916.00. Agent discount up to 2.325 %; additional dealer fees up to 0.30 %.
Risks highlighted: conditional coupons (may receive none), potential loss of > 30 % of principal, reliance on worst performer, credit risk to BMO, illiquid secondary market, pricing transparency, and uncertain U.S. tax treatment. The notes are unsecured, not FDIC-insured and will not list on any exchange.
La Bank of Montreal (BMO) offre titoli collegati al mercato con cedole condizionali, funzione memory e capitale a rischio condizionato, legati al peggior titolo tra Apple Inc., Broadcom Inc. e McDonald’s Corporation. I titoli, denominati $1.000, sono quotati il 11 luglio 2025, regolati il 16 luglio 2025 e scadono il 14 luglio 2028 (durata di 3 anni salvo richiamo anticipato).
Profilo di rendimento: Gli investitori ricevono una cedola trimestrale condizionale di almeno il 21,25% annuo (5,3125% trimestrale) a condizione che il peggior sottostante sia ≥ 80% del valore iniziale nel giorno di calcolo. La funzione “memory” accumula eventuali cedole non pagate da corrispondere al superamento della soglia.
Richiamo automatico: Da ottobre 2025 ad aprile 2028, se il peggior titolo è ≥ al valore iniziale nel giorno di calcolo, i titoli vengono richiamati automaticamente a valore nominale più cedola, terminando anticipatamente l’investimento e creando rischio di reinvestimento.
Rimborso del capitale: Se non richiamati anticipatamente, alla scadenza i detentori ricevono: (i) 100% del valore nominale se il peggior titolo è ≥ 70% del valore iniziale; oppure (ii) valore nominale × fattore di performance del peggior titolo se inferiore al 70%. Gli investitori quindi affrontano un’esposizione completa al ribasso sotto la soglia del 30% e potrebbero perdere tutto il capitale.
Termini strutturali chiave: Valori iniziali fissati alla data di pricing; soglia cedola 80%; soglia downside 70%; valore iniziale stimato pari a $966,40 (96,64% del nominale) e non inferiore a $916,00. Sconto agente fino al 2,325%; commissioni dealer aggiuntive fino allo 0,30%.
Rischi evidenziati: cedole condizionali (possibile mancato pagamento), potenziale perdita superiore al 30% del capitale, dipendenza dal peggior titolo, rischio di credito verso BMO, mercato secondario illiquido, trasparenza di prezzo limitata e trattamento fiscale USA incerto. I titoli sono non garantiti, non assicurati FDIC e non saranno quotati in alcuna borsa.
Bank of Montreal (BMO) comercializa Valores Vinculados al Mercado con Cupones Condicionales, Función de Memoria y Principal en Riesgo Condicional, vinculados al peor desempeño entre Apple Inc., Broadcom Inc. y McDonald’s Corporation. Los bonos denominados en $1,000 se cotizan el 11 de julio de 2025, liquidan el 16 de julio de 2025 y vencen el 14 de julio de 2028 (plazo de 3 años salvo llamado anticipado).
Perfil de ingresos: Los inversionistas reciben un cupón trimestral condicional de al menos 21.25% anual (5.3125% por trimestre) siempre que el peor activo subyacente esté ≥ 80% de su valor inicial en el día de cálculo correspondiente. La función de “memoria” acumula los cupones no pagados para ser abonados cuando se cumpla el umbral.
Llamado automático: De octubre de 2025 a abril de 2028, si el peor desempeño está ≥ su valor inicial en un día de cálculo, los bonos se llaman automáticamente al valor nominal más el cupón, finalizando la inversión anticipadamente y generando riesgo de reinversión.
Reembolso del principal: Si no fueron llamados previamente, al vencimiento los tenedores reciben: (i) 100% del valor nominal si el peor desempeño está ≥ 70% de su valor inicial; o (ii) valor nominal × factor de desempeño del peor activo si es < 70%. Por lo tanto, los inversionistas enfrentan exposición total a la baja bajo el margen del 30% y podrían perder todo el principal.
Términos estructurales clave: Valores iniciales fijados en la fecha de precio; umbral de cupón 80%; umbral de pérdida 70%; valor inicial estimado divulgado como $966.40 (96.64% del nominal) y no será menor a $916.00. Descuento de agente hasta 2.325%; comisiones adicionales del distribuidor hasta 0.30%.
Riesgos destacados: cupones condicionales (puede que no se reciba ninguno), posible pérdida de > 30% del principal, dependencia del peor desempeño, riesgo crediticio hacia BMO, mercado secundario ilíquido, transparencia en precios limitada y tratamiento fiscal estadounidense incierto. Los bonos no están garantizados, no tienen seguro FDIC y no cotizarán en ninguna bolsa.
뱅크 오브 몬트리올(BMO)은 애플(Apple Inc.), 브로드컴(Broadcom Inc.), 맥도날드(McDonald’s Corporation) 중 최저 실적 종목에 연동된 조건부 쿠폰, 메모리 기능, 조건부 원금 위험이 있는 자동 콜 가능 시장 연계 증권을 판매하고 있습니다. $1,000 단위의 이 증권은 2025년 7월 11일에 가격이 정해지고, 2025년 7월 16일에 결제되며, 2028년 7월 14일에 만기가 도래합니다(조기 상환 없으면 3년 만기).
수익 프로필: 투자자는 최저 실적 종목의 가격이 해당 산정일에 최초 가치의 80% 이상일 경우 최소 연 21.25%(분기별 5.3125%)의 조건부 분기별 쿠폰을 받습니다. ‘메모리’ 기능은 쿠폰 지급 조건 미충족 시 누락된 쿠폰을 다음 조건 충족 시 합산 지급합니다.
자동 콜: 2025년 10월부터 2028년 4월까지, 최저 실적 종목이 산정일에 최초 가치 이상이면 증권은 액면가와 쿠폰을 포함해 자동 상환되어 조기 투자 종료 및 재투자 위험이 발생합니다.
원금 상환: 조기 상환되지 않은 경우 만기 시 투자자는 (i) 최저 실적 종목이 최초 가치의 70% 이상이면 액면가의 100%를 받거나, (ii) 70% 미만이면 최저 종목의 성과 지수 × 액면가를 받습니다. 따라서 30% 손실 범위 이하에서는 원금 전액 손실 위험이 있습니다.
주요 구조 조건: 최초 가치는 가격 결정일에 확정; 쿠폰 지급 기준 80%; 하락 기준 70%; 예상 초기 가치는 $966.40(액면가의 96.64%)이며 최소 $916.00 이상; 에이전트 할인 최대 2.325%; 추가 딜러 수수료 최대 0.30%.
주요 위험: 조건부 쿠폰(미지급 가능성), 30% 이상 원금 손실 가능성, 최저 실적 종목 의존, BMO 신용 위험, 유동성 낮은 2차 시장, 가격 투명성 부족, 불확실한 미국 세금 처리. 증권은 무담보이며 FDIC 보험 대상이 아니고 거래소 상장도 없습니다.
La Bank of Montreal (BMO) commercialise des titres liés au marché avec coupons conditionnels, fonction mémoire et principal à risque conditionnel, liés à la moins bonne performance parmi Apple Inc., Broadcom Inc. et McDonald’s Corporation. Les billets libellés à 1 000 $ sont prix le 11 juillet 2025, réglés le 16 juillet 2025 et arrivent à échéance le 14 juillet 2028 (durée de 3 ans sauf rappel anticipé).
Profil de revenu : Les investisseurs perçoivent un coupon trimestriel conditionnel d’au moins 21,25 % par an (5,3125 % par trimestre) à condition que le sous-jacent le moins performant soit ≥ 80 % de sa valeur initiale à la date de calcul pertinente. La fonction « mémoire » cumule les coupons manqués pour les verser dès que le seuil est atteint.
Rappel automatique : D’octobre 2025 à avril 2028, si le moins performant est ≥ à sa valeur initiale à une date de calcul, les billets sont rappelés automatiquement à la valeur nominale plus coupon, mettant fin prématurément à l’investissement et générant un risque de réinvestissement.
Remboursement du principal : S’ils n’ont pas été rappelés auparavant, à l’échéance les détenteurs reçoivent : (i) 100 % de la valeur nominale si le moins performant est ≥ 70 % de sa valeur initiale ; ou (ii) valeur nominale × facteur de performance du moins performant si < 70 %. Les investisseurs sont donc exposés pleinement à la baisse au-delà de la marge de 30 % et peuvent perdre la totalité du principal.
Principaux termes structurels : Valeurs initiales fixées à la date de tarification ; seuil du coupon 80 % ; seuil de baisse 70 % ; valeur initiale estimée à 966,40 $ (96,64 % de la valeur nominale) et ne sera pas inférieure à 916,00 $. Remise agent jusqu’à 2,325 % ; frais supplémentaires du distributeur jusqu’à 0,30 %.
Risques mis en avant : coupons conditionnels (possibilité de non-paiement), perte potentielle de > 30 % du principal, dépendance au moins performant, risque de crédit sur BMO, marché secondaire illiquide, transparence des prix limitée et traitement fiscal américain incertain. Les billets ne sont pas garantis, non assurés FDIC et ne seront pas cotés en bourse.
Die Bank of Montreal (BMO) bietet Auto-Callable Market Linked Securities mit bedingten Coupons, Memory-Funktion und bedingtem Kapitalrisiko an, die an den schlechtesten Performer unter Apple Inc., Broadcom Inc. und McDonald’s Corporation gekoppelt sind. Die auf $1.000 lautenden Notes werden am 11. Juli 2025 bepreist, am 16. Juli 2025 abgewickelt und laufen bis zum 14. Juli 2028 (3 Jahre Laufzeit, sofern nicht früher zurückgerufen).
Einkommensprofil: Anleger erhalten vierteljährlich einen bedingten Coupon von mindestens 21,25 % p.a. (5,3125 % pro Quartal), sofern der schlechteste Basiswert am jeweiligen Berechnungstag ≥ 80 % seines Anfangswerts ist. Die „Memory“-Funktion addiert verpasste Coupons, sobald die Schwelle wieder erreicht wird.
Auto-Call: Von Oktober 2025 bis April 2028 werden die Notes automatisch zum Nennwert plus Coupon zurückgerufen, wenn der schlechteste Performer an einem Berechnungstag ≥ seinem Anfangswert ist, was zu einer vorzeitigen Beendigung der Anlage und Reinvestitionsrisiko führt.
Kapitalrückzahlung: Falls nicht vorzeitig zurückgerufen, erhalten Inhaber bei Fälligkeit: (i) 100 % des Nennwerts, wenn der schlechteste Performer ≥ 70 % seines Anfangswerts ist; oder (ii) Nennwert × Performancefaktor des schlechtesten Performers, falls dieser < 70 % liegt. Anleger tragen somit ein vollständiges Abwärtsrisiko unterhalb der 30 %-Pufferzone und könnten ihr gesamtes Kapital verlieren.
Wesentliche Strukturmerkmale: Anfangswerte zum Pricing-Datum festgelegt; Coupon-Schwelle 80 %; Downside-Schwelle 70 %; geschätzter Anfangswert angegeben mit $966,40 (96,64 % des Nennwerts) und mindestens $916,00. Agenturrabatt bis zu 2,325 %; zusätzliche Händlergebühren bis 0,30 %.
Hervorgehobene Risiken: bedingte Coupons (möglicherweise keine Zahlung), potenzieller Verlust von > 30 % des Kapitals, Abhängigkeit vom schlechtesten Performer, Kreditrisiko gegenüber BMO, illiquider Zweitmarkt, eingeschränkte Preistransparenz und unsichere US-Steuerbehandlung. Die Notes sind unbesichert, nicht FDIC-versichert und werden an keiner Börse notiert.
- High contingent coupon of at least 21.25 % per annum, well above traditional fixed-income yields.
- Memory feature allows recovery of missed coupons once thresholds are re-met, increasing potential income stability.
- 30 % downside buffer protects principal against moderate equity declines if the worst underlier remains above 70 % at maturity.
- Early auto-call can return capital at par plus coupon if markets remain flat or rise, reducing duration risk.
- Full downside exposure below 70 % of the worst-performing stock can result in losses > 30 % up to total principal loss.
- No participation in equity upside; returns are capped at coupon payments.
- Estimated initial value 96.64 % indicates a built-in discount and high fees relative to par.
- Illiquidity: securities will not list on an exchange; secondary market, if any, may price unfavorably.
- Issuer credit risk to Bank of Montreal; repayment depends on BMO’s solvency.
- Complex tax treatment with uncertain U.S. federal income tax consequences.
Insights
TL;DR: High 21%+ coupon and memory feature offset by substantial principal risk, illiquidity and reliance on worst stock.
The term sheet offers an attractive headline coupon (≥21.25 % p.a.) that far exceeds prevailing yields, achieved by combining three large-cap equities and a 30 % downside buffer. The quarterly observation and memory mechanism raise the probability of capturing some income, while the auto-call at par helps shorten duration if markets remain flat or rise. However, investors sacrifice all upside participation and carry full exposure to the worst-performing underlier below the 70 % barrier, exposing them to single-stock gaps (e.g., product cycles at AAPL or cyclical demand swings at AVGO). The estimated initial value (96.64 % of face) reveals a ~3.4 % built-in cost before dealer commissions, and secondary liquidity is expected to be thin. Given these trade-offs, the structure suits yield-seeking accounts comfortable with equity downside and issuer credit risk but is inappropriate for conservative income investors.
TL;DR: Product embeds leveraged short put on worst stock; high coupon compensates for significant tail risk.
The notes replicate writing a 3-year worst-of put struck at 70 % with knock-out features, plus a call on coupon observations. Correlation risk is elevated: a sharp idiosyncratic decline in any underlier triggers capital loss regardless of others’ strength. Historical stress scenarios show worst-of baskets breaching a 30 % buffer roughly once every 4-6 years during drawdowns, implying non-trivial default probability within the term. Credit exposure to BMO (A+ / Aa3) is modest but real; recovery on unsecured notes averages ~40 % in default. Illiquidity, uncertain tax treatment (contingent payment debt), and upfront sales concessions further erode expected value. While the structure may enhance portfolio income, risk-adjusted return is neutral at best.
La Bank of Montreal (BMO) offre titoli collegati al mercato con cedole condizionali, funzione memory e capitale a rischio condizionato, legati al peggior titolo tra Apple Inc., Broadcom Inc. e McDonald’s Corporation. I titoli, denominati $1.000, sono quotati il 11 luglio 2025, regolati il 16 luglio 2025 e scadono il 14 luglio 2028 (durata di 3 anni salvo richiamo anticipato).
Profilo di rendimento: Gli investitori ricevono una cedola trimestrale condizionale di almeno il 21,25% annuo (5,3125% trimestrale) a condizione che il peggior sottostante sia ≥ 80% del valore iniziale nel giorno di calcolo. La funzione “memory” accumula eventuali cedole non pagate da corrispondere al superamento della soglia.
Richiamo automatico: Da ottobre 2025 ad aprile 2028, se il peggior titolo è ≥ al valore iniziale nel giorno di calcolo, i titoli vengono richiamati automaticamente a valore nominale più cedola, terminando anticipatamente l’investimento e creando rischio di reinvestimento.
Rimborso del capitale: Se non richiamati anticipatamente, alla scadenza i detentori ricevono: (i) 100% del valore nominale se il peggior titolo è ≥ 70% del valore iniziale; oppure (ii) valore nominale × fattore di performance del peggior titolo se inferiore al 70%. Gli investitori quindi affrontano un’esposizione completa al ribasso sotto la soglia del 30% e potrebbero perdere tutto il capitale.
Termini strutturali chiave: Valori iniziali fissati alla data di pricing; soglia cedola 80%; soglia downside 70%; valore iniziale stimato pari a $966,40 (96,64% del nominale) e non inferiore a $916,00. Sconto agente fino al 2,325%; commissioni dealer aggiuntive fino allo 0,30%.
Rischi evidenziati: cedole condizionali (possibile mancato pagamento), potenziale perdita superiore al 30% del capitale, dipendenza dal peggior titolo, rischio di credito verso BMO, mercato secondario illiquido, trasparenza di prezzo limitata e trattamento fiscale USA incerto. I titoli sono non garantiti, non assicurati FDIC e non saranno quotati in alcuna borsa.
Bank of Montreal (BMO) comercializa Valores Vinculados al Mercado con Cupones Condicionales, Función de Memoria y Principal en Riesgo Condicional, vinculados al peor desempeño entre Apple Inc., Broadcom Inc. y McDonald’s Corporation. Los bonos denominados en $1,000 se cotizan el 11 de julio de 2025, liquidan el 16 de julio de 2025 y vencen el 14 de julio de 2028 (plazo de 3 años salvo llamado anticipado).
Perfil de ingresos: Los inversionistas reciben un cupón trimestral condicional de al menos 21.25% anual (5.3125% por trimestre) siempre que el peor activo subyacente esté ≥ 80% de su valor inicial en el día de cálculo correspondiente. La función de “memoria” acumula los cupones no pagados para ser abonados cuando se cumpla el umbral.
Llamado automático: De octubre de 2025 a abril de 2028, si el peor desempeño está ≥ su valor inicial en un día de cálculo, los bonos se llaman automáticamente al valor nominal más el cupón, finalizando la inversión anticipadamente y generando riesgo de reinversión.
Reembolso del principal: Si no fueron llamados previamente, al vencimiento los tenedores reciben: (i) 100% del valor nominal si el peor desempeño está ≥ 70% de su valor inicial; o (ii) valor nominal × factor de desempeño del peor activo si es < 70%. Por lo tanto, los inversionistas enfrentan exposición total a la baja bajo el margen del 30% y podrían perder todo el principal.
Términos estructurales clave: Valores iniciales fijados en la fecha de precio; umbral de cupón 80%; umbral de pérdida 70%; valor inicial estimado divulgado como $966.40 (96.64% del nominal) y no será menor a $916.00. Descuento de agente hasta 2.325%; comisiones adicionales del distribuidor hasta 0.30%.
Riesgos destacados: cupones condicionales (puede que no se reciba ninguno), posible pérdida de > 30% del principal, dependencia del peor desempeño, riesgo crediticio hacia BMO, mercado secundario ilíquido, transparencia en precios limitada y tratamiento fiscal estadounidense incierto. Los bonos no están garantizados, no tienen seguro FDIC y no cotizarán en ninguna bolsa.
뱅크 오브 몬트리올(BMO)은 애플(Apple Inc.), 브로드컴(Broadcom Inc.), 맥도날드(McDonald’s Corporation) 중 최저 실적 종목에 연동된 조건부 쿠폰, 메모리 기능, 조건부 원금 위험이 있는 자동 콜 가능 시장 연계 증권을 판매하고 있습니다. $1,000 단위의 이 증권은 2025년 7월 11일에 가격이 정해지고, 2025년 7월 16일에 결제되며, 2028년 7월 14일에 만기가 도래합니다(조기 상환 없으면 3년 만기).
수익 프로필: 투자자는 최저 실적 종목의 가격이 해당 산정일에 최초 가치의 80% 이상일 경우 최소 연 21.25%(분기별 5.3125%)의 조건부 분기별 쿠폰을 받습니다. ‘메모리’ 기능은 쿠폰 지급 조건 미충족 시 누락된 쿠폰을 다음 조건 충족 시 합산 지급합니다.
자동 콜: 2025년 10월부터 2028년 4월까지, 최저 실적 종목이 산정일에 최초 가치 이상이면 증권은 액면가와 쿠폰을 포함해 자동 상환되어 조기 투자 종료 및 재투자 위험이 발생합니다.
원금 상환: 조기 상환되지 않은 경우 만기 시 투자자는 (i) 최저 실적 종목이 최초 가치의 70% 이상이면 액면가의 100%를 받거나, (ii) 70% 미만이면 최저 종목의 성과 지수 × 액면가를 받습니다. 따라서 30% 손실 범위 이하에서는 원금 전액 손실 위험이 있습니다.
주요 구조 조건: 최초 가치는 가격 결정일에 확정; 쿠폰 지급 기준 80%; 하락 기준 70%; 예상 초기 가치는 $966.40(액면가의 96.64%)이며 최소 $916.00 이상; 에이전트 할인 최대 2.325%; 추가 딜러 수수료 최대 0.30%.
주요 위험: 조건부 쿠폰(미지급 가능성), 30% 이상 원금 손실 가능성, 최저 실적 종목 의존, BMO 신용 위험, 유동성 낮은 2차 시장, 가격 투명성 부족, 불확실한 미국 세금 처리. 증권은 무담보이며 FDIC 보험 대상이 아니고 거래소 상장도 없습니다.
La Bank of Montreal (BMO) commercialise des titres liés au marché avec coupons conditionnels, fonction mémoire et principal à risque conditionnel, liés à la moins bonne performance parmi Apple Inc., Broadcom Inc. et McDonald’s Corporation. Les billets libellés à 1 000 $ sont prix le 11 juillet 2025, réglés le 16 juillet 2025 et arrivent à échéance le 14 juillet 2028 (durée de 3 ans sauf rappel anticipé).
Profil de revenu : Les investisseurs perçoivent un coupon trimestriel conditionnel d’au moins 21,25 % par an (5,3125 % par trimestre) à condition que le sous-jacent le moins performant soit ≥ 80 % de sa valeur initiale à la date de calcul pertinente. La fonction « mémoire » cumule les coupons manqués pour les verser dès que le seuil est atteint.
Rappel automatique : D’octobre 2025 à avril 2028, si le moins performant est ≥ à sa valeur initiale à une date de calcul, les billets sont rappelés automatiquement à la valeur nominale plus coupon, mettant fin prématurément à l’investissement et générant un risque de réinvestissement.
Remboursement du principal : S’ils n’ont pas été rappelés auparavant, à l’échéance les détenteurs reçoivent : (i) 100 % de la valeur nominale si le moins performant est ≥ 70 % de sa valeur initiale ; ou (ii) valeur nominale × facteur de performance du moins performant si < 70 %. Les investisseurs sont donc exposés pleinement à la baisse au-delà de la marge de 30 % et peuvent perdre la totalité du principal.
Principaux termes structurels : Valeurs initiales fixées à la date de tarification ; seuil du coupon 80 % ; seuil de baisse 70 % ; valeur initiale estimée à 966,40 $ (96,64 % de la valeur nominale) et ne sera pas inférieure à 916,00 $. Remise agent jusqu’à 2,325 % ; frais supplémentaires du distributeur jusqu’à 0,30 %.
Risques mis en avant : coupons conditionnels (possibilité de non-paiement), perte potentielle de > 30 % du principal, dépendance au moins performant, risque de crédit sur BMO, marché secondaire illiquide, transparence des prix limitée et traitement fiscal américain incertain. Les billets ne sont pas garantis, non assurés FDIC et ne seront pas cotés en bourse.
Die Bank of Montreal (BMO) bietet Auto-Callable Market Linked Securities mit bedingten Coupons, Memory-Funktion und bedingtem Kapitalrisiko an, die an den schlechtesten Performer unter Apple Inc., Broadcom Inc. und McDonald’s Corporation gekoppelt sind. Die auf $1.000 lautenden Notes werden am 11. Juli 2025 bepreist, am 16. Juli 2025 abgewickelt und laufen bis zum 14. Juli 2028 (3 Jahre Laufzeit, sofern nicht früher zurückgerufen).
Einkommensprofil: Anleger erhalten vierteljährlich einen bedingten Coupon von mindestens 21,25 % p.a. (5,3125 % pro Quartal), sofern der schlechteste Basiswert am jeweiligen Berechnungstag ≥ 80 % seines Anfangswerts ist. Die „Memory“-Funktion addiert verpasste Coupons, sobald die Schwelle wieder erreicht wird.
Auto-Call: Von Oktober 2025 bis April 2028 werden die Notes automatisch zum Nennwert plus Coupon zurückgerufen, wenn der schlechteste Performer an einem Berechnungstag ≥ seinem Anfangswert ist, was zu einer vorzeitigen Beendigung der Anlage und Reinvestitionsrisiko führt.
Kapitalrückzahlung: Falls nicht vorzeitig zurückgerufen, erhalten Inhaber bei Fälligkeit: (i) 100 % des Nennwerts, wenn der schlechteste Performer ≥ 70 % seines Anfangswerts ist; oder (ii) Nennwert × Performancefaktor des schlechtesten Performers, falls dieser < 70 % liegt. Anleger tragen somit ein vollständiges Abwärtsrisiko unterhalb der 30 %-Pufferzone und könnten ihr gesamtes Kapital verlieren.
Wesentliche Strukturmerkmale: Anfangswerte zum Pricing-Datum festgelegt; Coupon-Schwelle 80 %; Downside-Schwelle 70 %; geschätzter Anfangswert angegeben mit $966,40 (96,64 % des Nennwerts) und mindestens $916,00. Agenturrabatt bis zu 2,325 %; zusätzliche Händlergebühren bis 0,30 %.
Hervorgehobene Risiken: bedingte Coupons (möglicherweise keine Zahlung), potenzieller Verlust von > 30 % des Kapitals, Abhängigkeit vom schlechtesten Performer, Kreditrisiko gegenüber BMO, illiquider Zweitmarkt, eingeschränkte Preistransparenz und unsichere US-Steuerbehandlung. Die Notes sind unbesichert, nicht FDIC-versichert und werden an keiner Börse notiert.
Filed Pursuant to Rule 433
Registration Statement No. 333-285508
|
Bank of Montreal Market Linked Securities |
 |
|
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 Apple Inc., the Common Stock of Broadcom Inc. and the Common Stock of McDonald’s Corporation due July 14, 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 Apple Inc., the common stock of Broadcom Inc. and the common stock of McDonald’s Corporation (each referred to as an “Underlier,” and collectively as the “Underliers”). |
| Pricing Date*: | July 11, 2025 |
| Issue Date*: | July 16, 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)/4. |
| Contingent Coupon Payment Dates: |
Quarterly, 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 21.25% 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 October 2025 to April 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*: | Quarterly, on the 11th day of each January, April, July and October, commencing October 2025 and ending April 2028, and July 11, 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 14, 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, 80% 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: | 06376ER46 |
| 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 $966.40 per security. The estimated initial value of the securities at pricing may differ from this value but will not be less than $916.00 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/927971/000121465925010075/y73252424b2.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 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 | 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
What is the contingent coupon rate on Bank of Montreal’s Market Linked Securities?
When can the securities be automatically called?
How much principal protection do investors have?
Do investors benefit from gains in Apple, Broadcom or McDonald’s?
What is the estimated initial value compared to the $1,000 face amount?
Will the securities trade on an exchange?
