BMO Files FWP: Signals Potential New Securities Offering

TL;DR

**BMO just filed an FWP, signaling a potential new securities offering is on the way.**

AI Summary

This FWP filing from Bank of Montreal /CAN/ (BMO) is a 'free writing prospectus,' which means it's a communication outside of the main prospectus that provides additional information about a securities offering. Since the filing itself is just a placeholder and lacks specific details about an offering, it indicates BMO is likely preparing or has recently launched a new security issuance, but the specifics (like type of security, amount, or terms) are not disclosed here. For investors, this matters because new issuances can dilute existing shares or change the company's debt structure, impacting future earnings or interest expenses.

Why It Matters

This filing signals Bank of Montreal is likely preparing or has recently launched a new securities offering, which could impact its capital structure and potentially dilute existing shareholders or alter its debt profile.

Risk Assessment

Risk Level: low — The filing itself is a procedural notice and does not contain specific financial details that would immediately impact risk, though a future offering could.

Analyst Insight

Smart investors should monitor subsequent SEC filings from Bank of Montreal, such as prospectus supplements or 8-K filings, for specific details regarding any new securities offering, including the type of security, amount, and terms, to assess potential impacts on their investment.

Key Players & Entities

• BANK OF MONTREAL /CAN/ (company) — the subject of the FWP filing
• 0000927971 (company) — the CIK (Central Index Key) for Bank of Montreal

FAQ

Key Financial Figures

• $1,000 — l be issued in minimum denominations of $1,000 and integral multiples of $1,000. &mi
• $981.50 — notes in these accounts may be between $981.50 and $1,000 per $1,000 in principal amou
• $968.50 — estimated initial value of the notes is $968.50 per $1,000 in principal amount. The est
• $920.00 — om this value but will not be less than $920.00 per $1,000 in principal amount. However
• $33.50 — ntingent Coupon, if payable, will equal $33.50 for each $1,000 in principal amount.

Filing Documents

• w323261fwp.htm (FWP) — 119KB
• bmologosm.jpg (GRAPHIC) — 12KB
• 0001214659-26-003642.txt ( ) — 137KB

From the Filing

971 Registration Statement No.333-285508 Filed Pursuant to Rule 433 dated March 23, 2026 Pricing Supplement to the Prospectus dated March 25, 2025, the Prospectus Supplement dated March 25, 2025 and the Product Supplement dated March 25, 2025 US$ [ ] Senior Medium-Term Notes, Series K Autocallable Barrier Notes with Memory Coupons due March 30, 2028 Linked to the common stock of PayPal Holdings, Inc. · The notes are designed for investors who are seeking quarterly contingent periodic interest payments (as described in more detail below), as well as a return of principal if the closing level of the common stock of PayPal Holdings, Inc. (the “Reference Asset”) on any quarterly Observation Date beginning in September 2026 is greater than 100% of its Initial Level (the “Call Level”). Investors should be willing to have their notes automatically redeemed prior to maturity, be willing to forego any potential to participate in the appreciation of the Reference Asset and be willing to lose some or all of their principal at maturity. · The notes may pay Contingent Coupons at the Contingent Interest Rate of 3.35% per quarter (approximately 13.40% per annum) depending on the performance of the Reference Asset. If the closing level of the Reference Asset on the applicable quarterly Observation Date is greater than or equal to its Coupon Barrier Level, the notes will pay (i) a Contingent Coupon on the corresponding Contingent Coupon Payment Date and (ii) and previously unpaid Contingent Coupons in respect of any prior Observation Dates pursuant to the Memory Coupon Feature. If the closing level of the Reference Asset is less than its Coupon Barrier Level on an Observation Date, the notes will not pay the Contingent Coupon on the corresponding Contingent Coupon Payment Date. · Beginning on September 28, 2026, if on any Observation Date, the closing level of the Reference Asset is greater than its Call Level, the notes will be automatically redeemed. On the following Contingent Coupon Payment Date (the “Call Settlement Date"), investors will receive their principal amount plus the Contingent Coupon otherwise due. After the notes are redeemed, investors will not receive any additional payments in respect of the notes. · The notes do not guarantee any return of principal at maturity. Instead, if the notes are not automatically redeemed, the payment at maturity will be based on the Final Level of the Reference Asset and whether the Final Level of that Reference Asset has declined from its Initial Level to below its Trigger Level on the Valuation Date (a “Trigger Event”), as described below. · If the notes are not automatically redeemed and a Trigger Event has occurred, you will receive a delivery of shares of the Reference Asset (the “Physical Delivery Amount”) or, at our election, the cash equivalent (calculated as described below, the “Cash Delivery Amount”), which will be worth less than the principal amount. Specifically, the value of any Physical Delivery Amount or Cash Delivery Amount that you receive will decrease 1% for each 1% decrease in the level of the Reference Asset from its Initial Level to its Final Level. Any fractional shares included in the Physical Delivery Amount will be paid in cash. · Investing in the notes is not equivalent to a direct investment in the Reference Asset. · The notes will not be listed on any securities exchange. · All payments on the notes are subject to the credit risk of Bank of Montreal. · The notes will be issued in minimum denominations of $1,000 and integral multiples of $1,000. · Our subsidiary, BMO Capital Markets Corp. (“BMOCM”), is the agent for this offering. See “Supplemental Plan of Distribution (Conflicts of Interest)” below. · The notes will not be subject to conversion into our common shares or the common shares of any of our affiliates under subsection 39.2(2.3) of the Canada Deposit Insurance Corporation Act (the “CDIC Act”). Terms of the Notes: 1 Pricing Date: March 27, 2026 Valuation Date: March 27, 2028 Settlement Date: April 01, 2026 Maturity Date: March 30, 2028 1 Expected. See “Key Terms of the Notes” below for additional details. Specific Terms of the Notes: Autocallable Number Reference Asset Ticker Symbol Initial Level Contingent Interest Rate Coupon Barrier Level Trigger Level CUSIP Principal Amount Price to Public 1 Agent’s Commission 1 Proceeds to Bank of Montreal 1 971 The common stock of PayPal Holdings, Inc. PYPL [ ] 3.35% per quarter (approximately 13.40% per annum) [ ], 60.00% of its Initial Level [ ], 60.00% of its Initial Level 06370EES3 [ ] 100% Up to 1.85% [ ] At least 98.15% [ ] 1 The total “Agent’s Commission” and “Procee

View Full Filing

View this FWP filing on SEC EDGAR