Filed Pursuant to Rule 433
Registration Statement No. 333-285508
| ACCELERATED RETURN NOTES® (ARNs®) |
| Accelerated Return Notes® Linked to the Common Stock of Apple Inc. | |
| Issuer | Bank of Montreal (“BMO”). References on this page to “we,” “us” or “our” mean BMO. |
| Principal Amount | $10.00 per unit |
| Term | Approximately 14 months |
| Market Measure | Common Stock of Apple Inc. (the “Underlying Company”) (Bloomberg symbol: “AAPL”) |
Payout Profile at Maturity |
· 3-to-1 upside exposure to increases in the Market Measure, subject to the Capped Value · 1-to-1 downside exposure to decreases in the Market Measure, with up to 100% of your principal at risk |
| Capped Value | [$11.80 to $12.20] per unit, a return of [18.00% to 22.00%] over the principal amount, to be determined on the pricing date |
| Participation Rate | 300% |
Preliminary Offering Documents |
https://www.sec.gov/Archives/edgar/data/927971/000121465925013478/w92252424b2.htm |
| Exchange Listing | No |
You should read the relevant Preliminary Offering Documents before you invest. Click on the Preliminary Offering Documents hyperlink above or call your Financial Advisor for a hard copy.
Risk Factors
Please see the Preliminary Offering Documents for a description of certain risks related to this investment, including, but not limited to, the following:
| · | Depending on the performance of the Market Measure as measured shortly before the maturity date, your investment may result in a loss; there is no guaranteed return of principal. |
| · | The notes do not pay interest, and any return on the notes may be less than the yield you could earn by owning a conventional fixed or floating rate debt security of comparable maturity. |
| · | Any positive return on your investment is limited to the return represented by the Capped Value and may be less than a comparable investment directly in the Market Measure. |
| · | Payments on the notes are subject to our credit risk, and actual or perceived changes in our creditworthiness are expected to affect the value of the notes. |
| · | The initial estimated value of the notes on the pricing date, based on our proprietary pricing models, will be less than the public offering price because costs associated with offering, structuring and hedging the notes are included in the public offering price, but are not included in the initial estimated value. |
| · | To determine the terms of the notes, we use an internal funding rate that represents a discount from the credit spreads for our conventional fixed-rate debt. As a result, the terms of the notes are less favorable to you than if we had used a higher funding rate. |
| · | The initial estimated value of the notes is not an indication of the price, if any, at which we, BofAS or any of our respective affiliates or any other person may be willing to buy the notes from you in the secondary market (if any). |
| · | A trading market is not expected to develop for the notes. |
| · | Our business, hedging and trading activities, and those of MLPF&S, BofAS and our respective affiliates (including trades in the Market Measure), and any hedging and trading activities we, MLPF&S, BofAS or our respective affiliates engage in for our clients’ accounts, may adversely affect the market value of and return on the notes and may create conflicts of interest with you. |
| · | There may be potential conflicts of interest involving the calculation agents, one of which is our affiliate and one of which is BofAS. |
| · | The Underlying Company will have no obligations relating to the notes, and none of us, MLPF&S or BofAS will perform any due diligence procedures with respect to the Underlying Company in connection with this offering. |
| · | You will have no rights of a holder of the Market Measure, and you will not be entitled to receive shares of the Market Measure or dividends or other distributions by the Underlying Company. |
| · | While we, MLPF&S, BofAS or our respective affiliates may from time to time own securities of the Underlying Company, we, MLPF&S, BofAS and our respective affiliates do not control the Underlying Company, and have not verified any disclosure made by the Underlying Company. |
| · | The Redemption Amount will not be adjusted for all corporate events that could affect the Market Measure. See “Description of the ARNs—Anti-Dilution Adjustments” in product supplement STOCK ARN-1. |
| · | The U.S. federal income tax consequences of an investment in the notes are unclear. |
Final terms will be set on the pricing date within the given range for the specified Market-Linked Investment. Please see the Preliminary Offering Documents for complete product disclosure, including related risks and tax disclosure.
The graph above and the table below reflect the hypothetical return on the notes, based on the terms contained in the table to the left (using the mid-point for any range(s)). The graph and the table have been prepared for purposes of illustration only and do not take into account any tax consequences from investing in the notes.
| Hypothetical Percentage Change from the Starting Value to the Ending Value |
Hypothetical Redemption Amount per Unit |
Hypothetical Total Rate of Return on the Notes |
| -100.00% | $0.00 | -100.00% |
| -50.00% | $5.00 | -50.00% |
| -40.00% | $6.00 | -40.00% |
| -30.00% | $7.00 | -30.00% |
| -20.00% | $8.00 | -20.00% |
| -10.00% | $9.00 | -10.00% |
| -5.00% | $9.50 | -5.00% |
| -2.50% | $9.75 | -2.50% |
| 0.00% | $10.00 | 0.00% |
| 2.50% | $10.75 | 7.50% |
| 5.00% | $11.50 | 15.00% |
| 6.67% | $12.00(1) | 20.00% |
| 10.00% | $12.00 | 20.00% |
| 20.00% | $12.00 | 20.00% |
| 30.00% | $12.00 | 20.00% |
| 40.00% | $12.00 | 20.00% |
| 50.00% | $12.00 | 20.00% |
| 60.00% | $12.00 | 20.00% |
| (1) | The Redemption Amount per unit cannot exceed the hypothetical Capped Value. |
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.