Form FWP - Filing under Securities Act Rules 163/433 of free writing prospectuses
21 Enero 2025 - 3:54PM
Edgar (US Regulatory)
Filed Pursuant to Rule 433
Registration Statement No. 333-264388
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Bank of Montreal
Market Linked Securities |
 |
|
Market Linked Securities—Auto-Callable with Fixed
Percentage Buffered Downside
Principal at Principal at Risk Securities Linked to the
Lowest Performing of the Communication Services Select Sector SPDR® Fund, the Industrial Select Sector SPDR®
Fund and the Technology Select Sector SPDR® Fund due February 3, 2028
Term Sheet to Preliminary Pricing Supplement dated January
21, 2025
|
|
Summary of Terms
|
|
Summary of Terms (continued)
|
| Issuer: |
Bank of Montreal |
| Market Measures: |
The Communication Services Select Sector SPDR® Fund, the Industrial Select Sector SPDR® Fund and the Technology Select Sector SPDR® Fund (each an “Underlier,” and collectively, the “Underliers”) |
| Pricing Date*: |
January 30, 2025 |
| Issue Date*: |
February 4, 2025 |
Face Amount and
Original Offering
Price: |
$1,000 per security |
| Automatic Call: |
If the closing value of the lowest performing Underlier on any call date is greater than or equal to its call threshold value applicable to that call date, the securities will be automatically called, and on the related call settlement date, investors will receive the face amount plus the call premium applicable to that call date. |
Call Dates*, Call
Threshold Values
and Call Premiums: |
Call Dates |
Call Threshold
Value |
Call
Premium† |
| February 4, 2026 |
For each Underlier, 100% of its starting value |
At least 11.00% |
| February 4, 2027 |
For each Underlier, 100% of its starting value |
At least 22.00% |
| January 31, 2028 (the “final calculation day”) |
For each Underlier, 90% of its starting value |
At least 33.00% |
| |
† to be determined on the pricing date. |
Call Settlement
Date: |
Three business days after the applicable call date (if the securities are called on the last call date, the call settlement date will be the stated maturity date) |
Maturity Payment
Amount (per
security): |
If the securities are not automatically called:
$1,000 × (performance factor of the lowest
performing Underlier on the final calculation day + buffer amount) |
Stated Maturity
Date*: |
February 3, 2028 |
Lowest Performing
Underlier: |
For any call date, the “lowest performing Underlier” will be the Underlier with the lowest performance factor on that call date. |
Performance
Factor: |
With respect to an Underlier on any call date, its closing value on such call date divided by its starting value (expressed as a percentage). |
| 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 |
Downside Threshold
Value: |
For each Underlier, 90% of its starting value |
| Buffer Amount: |
10% |
| Calculation Agent: |
BMO Capital Markets Corp. (“BMOCM”), an affiliate of the issuer |
| Denominations: |
$1,000 and any integral multiple of $1,000 |
| 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% |
*subject to change
** In addition, selected dealers may receive a fee of up
to 0.30% for marketing and other services
| CUSIP: |
06376CUM6 |
| Material Tax Consequences: |
See the preliminary pricing supplement |
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 not automatically called, which means that
the ending value of the lowest performing Underlier on the final calculation day is less than its downside threshold value, you will have
1-to-1 downside exposure to the decrease in the value of the lowest performing Underlier on the final calculation day in excess of the
buffer amount, and will lose some, and possibly up to 90%, of the face amount of your securities at maturity.
Any positive return on the securities will be limited to the applicable
call premium, even if the closing value of the lowest performing Underlier on the applicable call date significantly exceeds its starting
value. You will not participate in any appreciation of any Underlier beyond the applicable call premium.
On the date of the accompanying preliminary pricing supplement, the
estimated initial value of the securities is $965.60 per security. The estimated initial value of the securities at pricing may differ
from this value but will not be less than $915.00 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:
https://www.sec.gov/Archives/edgar/data/927971/000121465925001030/w121251424b2.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,
You Will Lose Some, And Possibly Up To 90%, Of The Face Amount Of Your Securities At Maturity. |
| · | The Potential Return On The Securities Is Limited
To The Call Premium And May Be Lower Than The Return On A Direct Investment In Any Underlier. |
| · | 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 Call Date, 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. |
| · | The Securities Do Not Pay Interest. |
| · | Higher Call Premiums 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 Payment Upon An Automatic Call Or At Stated
Maturity 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 Or The Fund Underlying Indices 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 Held By The Underliers. |
| o | We And Our Affiliates Have No Affiliation With The Fund Sponsors Or The Fund Underlying Index Sponsors
And Have Not Independently Verified Their Public Disclosure Of Information. |
| o | An Investment Linked To The Shares Of An Underlier Is Different From An Investment Linked To Its Fund
Underlying Index. |
| o | There Are Risks Associated With The Underliers. |
| o | Anti-Dilution Adjustments Relating To The Shares Of The Underliers Do Not Address Every Event That Could
Affect Such Shares. |
| · | The Equity Securities Composing The Communication
Services Select Sector SPDR® Fund Are Concentrated In The Communications Sector. |
| · | The Equity Securities Composing The Industrial
Select Sector SPDR® Fund Are Concentrated In The Industrial Sector. |
| · | The Equity Securities Composing The Technology
Select Sector SPDR® Fund Are Concentrated In The Technology Sector. |
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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