# EDGAR Filing Document

**Accession Number:** 0000927971
**File Stem:** 0001214659-25-017475
**Filing Date:** 2025-12
**Character Count:** 62464
**Document Hash:** 65a4ce6520b92dc3a309ee62ce60401f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001214659-25-017475.hdr.sgml**: 20251202

**ACCESSION NUMBER**: 0001214659-25-017475

**CONFORMED SUBMISSION TYPE**: 424B2

**PUBLIC DOCUMENT COUNT**: 21

**FILED AS OF DATE**: 20251202

**DATE AS OF CHANGE**: 20251202

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BANK OF MONTREAL /CAN/
- **CENTRAL INDEX KEY:** 0000927971
- **STANDARD INDUSTRIAL CLASSIFICATION:** COMMERCIAL BANKS, NEC [6029]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A6
- **FISCAL YEAR END:** 1031

**FILING VALUES:**
- **FORM TYPE:** 424B2
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-285508
- **FILM NUMBER:** 251542544

**BUSINESS ADDRESS:**
- **STREET 1:** 1 FIRST CANADIAN PLACE
- **CITY:** TORONTO
- **STATE:** A6
- **ZIP:** M5X 1A1
- **BUSINESS PHONE:** 000-000-0000

**MAIL ADDRESS:**
- **STREET 1:** 1 FIRST CANADIAN PLACE
- **CITY:** TORONTO
- **STATE:** A6
- **ZIP:** M5X 1A1

**The information in this preliminary term sheet is not complete and may be changed. This preliminary term sheet and the accompanying product supplement, prospectus supplement and prospectus are not an offer to sell these notes and we are not soliciting an offer to buy these notes in any jurisdiction where the offer or sale is not permitted.**

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| | |
|:---|:---|
| **Subject to Completion <br> Preliminary Term Sheet dated <br> December 2, 2025** | **Filed Pursuant to Rule 424(b)(2)<br> Registration Statement No. 333-285508<br> (To Product Supplement No. EQUITY ARN-1 dated July 29, <br> 2025, Prospectus Supplement dated March 25, 2025<br> and Prospectus dated March 25, 2025)** |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units<br> $10 principal amount per unit<br> CUSIP No. | Pricing Date\*<br> Settlement Date\*<br> Maturity Date\* | December , 2025<br> December , 2025<br> February , 2027 |
| ![](bmologosm.jpg) | \*Subject to change based on the actual date the notes are priced for initial sale to the public (the "pricing date") | \*Subject to change based on the actual date the notes are priced for initial sale to the public (the "pricing date") |

---

**Accelerated Return Notes<sup>®</sup> Linked to the iShares<sup>®</sup> U.S. Aerospace & Defense ETF**

▪ Maturity of approximately 14 months

▪ 3-to-1 upside exposure to increases in the Underlying Fund, subject to a capped return of [10.50% to 14.50%]

▪ 1-to-1 downside exposure to decreases in the Underlying
Fund, with up to 100% of your principal at risk

▪ All payments occur at maturity and are subject to the credit risk of Bank of Montreal

▪ No periodic interest payments

▪ In addition to the underwriting discount set forth below, the notes include a hedging-related charge of $0.05 per unit. See "Structuring
the Notes"

▪ Limited secondary market liquidity, with no exchange listing

▪ The
notes are the unsecured obligations of Bank of Montreal. The notes are not insured by the Federal Deposit Insurance Corporation, the
Deposit Insurance Fund, the Canada Deposit Insurance Corporation or any other governmental agency.

**The notes are being issued by Bank of Montreal ("BMO"). There are important differences between the notes and a conventional debt security, including different investment risks and certain additional costs. See "Risk Factors" and "Additional Risk Factors" beginning on page TS-**6 of this term sheet and beginning on page PS-5 of product supplement EQUITY ARN-1.**

**The estimated initial value of the notes determined by us as of the pricing date, which we refer to as the initial estimated value, is expected to be within the range of $9.00 and $9.43 per unit and will be less than the public offering price listed below. However, as discussed in more detail in this term sheet, the actual value of the notes at any time will reflect many factors and cannot be predicted with accuracy.** See "Summary" on the following page, "Risk Factors" beginning on page TS-6 of this term sheet and "Structuring the Notes" below for additional information.

**The notes are not bail-inable notes and are not 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.**

**_________________________**

None of the Securities and Exchange Commission (the "SEC"), any state securities commission, or any other regulatory body has approved or disapproved of these notes or determined if this Note Prospectus (as defined below) is truthful or complete. Any representation to the contrary is a criminal offense.

**_________________________**

---

| | | |
|:---|:---|:---|
|  | <u>Per Unit</u> | <u>Total</u> |
| Public offering price<sup>(1)</sup> | $10.000 | $|
| Underwriting discount<sup>(1)</sup> | $0.175 | $|
| Proceeds, before expenses, to BMO | $9.825 | $|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For any purchase of 300,000 units or more in a single transaction by
an individual investor or in combined transactions with the investor's household in this offering, the public offering price and
the underwriting discount will be $9.950 per unit and $0.125 per unit, respectively. See "Supplement to the Plan of Distribution"
below.

**The notes:**

---

| | | |
|:---|:---|:---|
| **Are Not FDIC Insured** | **Are Not Bank Guaranteed** | **May Lose Value** |

---

**BofA Securities**

December , 2025

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the iShares<sup>®</sup> U.S. Aerospace & Defense ETF, due February , 2027</u>

Summary

The Accelerated Return Notes<sup>®</sup> Linked to the iShares® U.S. Aerospace & Defense ETF, due February , 2027 (the "notes") are our senior unsecured debt securities. The notes are not insured by the Canada Deposit Insurance Corporation or the Federal Deposit Insurance Corporation, or secured by collateral. The notes rank equally with all of our other unsecured senior debt from time to time outstanding. **Any payments due on the notes, including any repayment of principal, are subject to our credit risk.**

The notes provide you a leveraged return, subject to a cap, if the Ending Value of the Market Measure, which is the iShares® U.S. Aerospace & Defense ETF (the "Underlying Fund"), is greater than the Starting Value. If the Ending Value is equal to the Starting Value, you will receive the principal amount of your notes. If the Ending Value is less than the Starting Value, you will lose all or a portion of the principal amount of your notes. Any payments on the notes will be calculated based on the $10 principal amount per unit and will depend on the performance of the Underlying Fund, subject to our credit risk. See "Terms of the Notes" below.

Our initial estimated value of the notes equals the sum of the values of the following hypothetical components:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a fixed-income debt component with the same tenor as the notes, valued using our internal funding rate
for structured notes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· one or more derivative transactions relating to the economic terms of the notes.

The internal funding rate used in the determination of the initial estimated value generally represents a discount from the credit spreads for our conventional fixed-rate debt. The value of these derivative transactions is derived from our internal pricing models. These models are based on factors such as the traded market prices of comparable derivative instruments and on other inputs, which include volatility, dividend rates, interest rates and other factors. As a result, the initial estimated value of the notes is based on market conditions at the time it is calculated.

The economic terms of the notes (including the Capped Value) are based on our internal funding rate described above. Our internal funding rate is typically lower than the rate we would pay when we issue conventional fixed or floating rate debt securities. This difference in funding rate, as well as the underwriting discount and the hedging related charge described below, will reduce the economic terms of the notes to you and the initial estimated value of the notes on the pricing date. Due to these factors, the public offering price you pay to purchase the notes will be greater than the initial estimated value of the notes.

For more information about the initial estimated value and the structuring of the notes, see "Risk Factors" and "Structuring the Notes" below.

---

| | | |
|:---|:---|:---|
| Terms of the Notes | Terms of the Notes | Redemption Amount Determination |
| **Issuer:** | Bank of Montreal ("BMO") | On the maturity date, you will receive a cash payment per unit determined as follows: |
| **Principal Amount:** | $10.00 per unit | ![](g1125255424b2_ts2.jpg) |
| **Term:** | Approximately 14 months | ![](g1125255424b2_ts2.jpg) |
| **Market Measure:** | The iShares<sup>®</sup> U.S. Aerospace & Defense ETF (Bloomberg symbol: "ITA") | ![](g1125255424b2_ts2.jpg) |
| **Starting Value:** | The Closing Market Price of the Underlying Fund on the pricing date | ![](g1125255424b2_ts2.jpg) |
| **Ending Value:** | The average of the products of the Closing Market Price of the Underlying Fund on each calculation day occurring during the Maturity Valuation Period *times* its Price Multiplier on that day. The scheduled calculation days are subject to postponement in the event of Market Disruption Events, as described beginning on page PS-24 of product supplement EQUITY ARN-1. | ![](g1125255424b2_ts2.jpg) |
| **Price Multiplier:** | 1, subject to adjustment for certain events relating to the Underlying Fund, as described beginning on page PS-27 of product supplement EQUITY ARN-1 | ![](g1125255424b2_ts2.jpg) |
| **Participation Rate:** | 300% | ![](g1125255424b2_ts2.jpg) |
| **Capped Value:** | [$11.05 to $11.45] per unit, which represents a return of [10.50% to 14.50%] over the principal amount. The actual Capped Value will be determined on the pricing date. | ![](g1125255424b2_ts2.jpg) |
| **Maturity Valuation <br> Period:** | Five scheduled calculation days shortly before the maturity date. | ![](g1125255424b2_ts2.jpg) |
| **Fees and Charges:** | The underwriting discount of $0.175 per unit listed on the cover page and the hedging related charge of $0.05 per unit described in "Structuring the Notes" below. | ![](g1125255424b2_ts2.jpg) |
| **Joint Calculation <br> Agents:** | BMO Capital Markets Corp. ("BMOCM") and BofA Securities, Inc. ("BofAS"), acting jointly. | ![](g1125255424b2_ts2.jpg) |
| ![](g1125255424b2_ts2.jpg) |  |  |

---

Accelerated Return Notes<sup>®</sup> TS-2

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the iShares<sup>®</sup> U.S. Aerospace & Defense ETF, due February , 2027</u>

The terms and risks of the notes are contained in this term sheet and in the following:

▪ Product supplement EQUITY ARN-1 dated July 29, 2025:<br> [https://www.sec.gov/Archives/edgar/data/927971/000121465925011042/y725250424b2.htm](https://www.sec.gov/Archives/edgar/data/927971/000121465925011042/y725250424b2.htm)

▪ Prospectus Supplement and Prospectus dated March 25, 2025:<br> [https://www.sec.gov/Archives/edgar/data/927971/000119312525062081/d840917d424b5.htm](https://www.sec.gov/Archives/edgar/data/927971/000119312525062081/d840917d424b5.htm)

These documents (together, the "Note Prospectus") have been filed as part of a registration statement with the SEC, which may, without cost, be accessed on the SEC website as indicated above or obtained from Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S") or BofAS by calling toll-free at 1-800-294-1322. Before you invest, you should read the Note Prospectus, including this term sheet, for information about us and this offering. Any prior or contemporaneous oral statements and any other written materials you may have received are superseded by the Note Prospectus. Capitalized terms used but not defined in this term sheet have the meanings set forth in product supplement EQUITY ARN-1. When we refer to "we," "us" or "our" in this term sheet, we refer only to Bank of Montreal.

"Accelerated Return Notes<sup>®</sup>" and "ARNs<sup>®</sup>" are the registered service marks of Bank of America Corporation, the parent company of MLPF&S and BofAS.

Investor Considerations

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| | |
|:---|:---|
| **You may wish to consider an investment in the notes if:** | **The notes may not be an appropriate investment for you if:** |
| ▪ You anticipate that the Underlying Fund will increase moderately from the Starting Value to the Ending Value.<br>▪ You are willing to risk a loss of principal and return if the Underlying Fund decreases from the Starting Value to the Ending Value.<br>▪ You accept that the return on the notes will be capped.<br>▪ You are willing to forgo the interest payments that are paid on conventional interest bearing debt securities.<br>▪ You are willing to forgo dividends or other benefits of owning the shares of the Underlying Fund or the securities held by the Underlying Fund.<br>▪ You are willing to accept a limited market or no market for sales prior to maturity, and understand that the market prices for the notes, if any, will be affected by various factors, including our actual and perceived creditworthiness, our internal funding rate and fees and charges on the notes.<br>▪ You are willing to assume our credit risk, as issuer of the notes, for all payments under the notes, including the Redemption Amount. | ▪ You believe that the Underlying Fund will decrease from the Starting Value to the Ending Value or that it will not increase sufficiently over the term of the notes to provide you with your desired return.<br>▪ You seek principal repayment or preservation of capital.<br>▪ You seek an uncapped return on your investment.<br>▪ You seek interest payments or other current income on your investment.<br>▪ You want to receive dividends or other distributions paid on the shares of the Underlying Fund or the securities held by the Underlying Fund.<br>▪ You seek an investment for which there will be a liquid secondary market.<br>▪ You are unwilling or are unable to take market risk on the notes or to take our credit risk as issuer of the notes. |

---

We urge you to consult your investment, legal, tax, accounting, and other advisors before you invest in the notes.

Accelerated Return Notes<sup>®</sup> TS-3

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the iShares<sup>®</sup> U.S. Aerospace & Defense ETF, due February , 2027</u>

Hypothetical Payout Profile and Examples of Payments at Maturity

The graph below is based on **hypothetical** numbers and values.

---

| | |
|:---|:---|
| Accelerated Return Notes<sup>®</sup> <br> ![](g1125255424b2_ts4.jpg)  | This graph reflects the returns on the notes, based on the Participation Rate of 300% and a hypothetical Capped Value of $11.25 per unit (the midpoint of the Capped Value range of [$11.05 to $11.45]). The green line reflects the returns on the notes, while the dotted gray line reflects the returns of a direct investment in the Underlying Fund, excluding dividends.<br>This graph has been prepared for purposes of illustration only.<br>|

---

The following table and examples are for purposes of illustration only. They are based on **hypothetical** values and show **hypothetical** returns on the notes. They illustrate the calculation of the Redemption Amount and total rate of return based on a hypothetical Starting Value of 100.00, the Participation Rate of 300%, a hypothetical Capped Value of $11.25 per unit and a range of hypothetical Ending Values. **The actual amount you receive and the resulting total rate of return will depend on the actual Starting Value, Ending Value and Capped Value, and whether you hold the notes to maturity.** The following examples do not take into account any tax consequences from investing in the notes.

For recent actual prices of the Underlying Fund, see "The Underlying Fund" section below. The Ending Value will not include any income generated by dividends paid on the Underlying Fund, which you would otherwise be entitled to receive if you invested in the Underlying Fund directly. In addition, all payments on the notes are subject to issuer credit risk.

---

| | | | |
|:---|:---|:---|:---|
| **Ending Value** | **Percentage Change from the<br> Starting Value to the Ending<br> Value** | **Redemption Amount per<br> Unit** | **Total Rate of Return on the<br> Notes** |
| 0.00 | -100.00% | $0.00 | -100.00% |
| 50.00 | -50.00% | $5.00 | -50.00% |
| 60.00 | -40.00% | $6.00 | -40.00% |
| 70.00 | -30.00% | $7.00 | -30.00% |
| 80.00 | -20.00% | $8.00 | -20.00% |
| 90.00 | -10.00% | $9.00 | -10.00% |
| 95.00 | -5.00% | $9.50 | -5.00% |
| 97.50 | -2.50% | $9.75 | -2.50% |
| 100.00<sup>(1)</sup> | 0.00% | $10.00 | 0.00% |
| 102.50 | 2.50% | $10.75 | 7.50% |
| 104.17 | 4.17% | $11.25<sup>(2)</sup> | 12.50% |
| 105.00 | 5.00% | $11.25 | 12.50% |
| 110.00 | 10.00% | $11.25 | 12.50% |
| 120.00 | 20.00% | $11.25 | 12.50% |
| 130.00 | 30.00% | $11.25 | 12.50% |
| 140.00 | 40.00% | $11.25 | 12.50% |
| 150.00 | 50.00% | $11.25 | 12.50% |
| 160.00 | 60.00% | $11.25 | 12.50% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The **hypothetical** Starting Value of 100.00 used in these examples
has been chosen for illustrative purposes only, and does not represent a likely actual Starting Value for the Underlying Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Redemption Amount per unit cannot exceed the **hypothetical** Capped Value.

Accelerated Return Notes<sup>®</sup> TS-4

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the iShares<sup>®</sup> U.S. Aerospace & Defense ETF, due February , 2027</u>

**Redemption Amount Calculation Examples**

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| | |
|:---|:---|
| **Example 1** | **Example 1** |
| The Ending Value is 50.00, or 50.00% of the Starting Value: | The Ending Value is 50.00, or 50.00% of the Starting Value: |
| Starting Value: 100.00 | Starting Value: 100.00 |
| Ending Value: 50.00 | Ending Value: 50.00 |
| ![](g1125255424b2_ts5a.jpg) | **= $5.00** Redemption Amount per unit |

---

---

| | |
|:---|:---|
| **Example 2** | **Example 2** |
| The Ending Value is 102.50, or 102.50% of the Starting Value: | The Ending Value is 102.50, or 102.50% of the Starting Value: |
| Starting Value: 100.00 | Starting Value: 100.00 |
| Ending Value: 102.50 | Ending Value: 102.50 |
| ![](g1125255424b2_ts5b.jpg) | **= $10.75** Redemption Amount per unit |

---

---

| | |
|:---|:---|
| **Example 3** | **Example 3** |
| The Ending Value is 130.00, or 130.00% of the Starting Value: | The Ending Value is 130.00, or 130.00% of the Starting Value: |
| Starting Value: 100.00 | Starting Value: 100.00 |
| Ending Value: 130.00 | Ending Value: 130.00 |
| ![](g1125255424b2_ts5c.jpg) | **= $19.00, however, because the Redemption Amount for the notes cannot exceed the hypothetical Capped Value, the Redemption Amount will be $11.25 per unit** |

---

Accelerated Return Notes<sup>®</sup> TS-5

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the iShares<sup>®</sup> U.S. Aerospace & Defense ETF, due February , 2027</u>

Risk Factors

*There are important differences between the notes and a conventional debt security. An investment in the notes involves significant risks, including those listed below. You should carefully review the more detailed explanation of risks relating to the notes in the "Risk Factors" sections beginning on page PS-5 of product supplement EQUITY ARN-1, page S-2 of the prospectus supplement, and page 9 of the prospectus identified above. We also urge you to consult your investment, legal, tax, accounting, and other advisors before you invest in the notes.* 

**<u>Structure-related Risks</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Depending on the performance of the Underlying Fund as measured shortly before the maturity date, your investment may result in a
loss; there is no guaranteed return of principal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ 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 shares of the Underlying Fund or the securities held by the Underlying Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ 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. If we become insolvent or are unable to pay our obligations, you may lose your entire investment.

**<u>Valuation and Market-related Risks</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Our initial estimated value of the notes is only an estimate, and is based on a number of factors. The public offering price of the
notes may exceed our initial estimated value, because costs associated with offering, structuring and hedging the notes are included in
the public offering price, but are not included in the estimated value. These costs will include any underwriting discount and selling
concessions and the cost of hedging our obligations under the notes through one or more hedge counterparties (which may be one or more
of our affiliates or an agent or its affiliates). Such hedging cost includes our or our hedge counterparty's expected cost of providing
such hedge, as well as the profit we or our hedge counterparty expect to realize in consideration for assuming the risks inherent in providing
such hedge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Our initial estimated value of the notes is derived using our internal pricing models. This value is based on market conditions and
other relevant factors, which include volatility of the Underlying Fund, dividend rates and interest rates. Different pricing models and
assumptions, including those used by the agent, its affiliates or other market participants, could provide values for the notes that are
greater than or less than our initial estimated value. In addition, market conditions and other relevant factors after the pricing date
are expected to change, possibly rapidly, and our assumptions may prove to be incorrect. After the pricing date, the value of the notes
could change dramatically due to changes in market conditions, our creditworthiness, and the other factors discussed in the next risk
factor. These changes are likely to impact the price, if any, at which we, BofAS or any of our respective affiliates would be willing
to purchase the notes from you in any secondary market transactions. Our initial estimated value does not represent a minimum price at
which we, BofAS or any of our respective affiliates or any other party would be willing to buy your notes in any secondary market at any
time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ A trading market is not expected to develop for the notes. None of us, MLPF&S, BofAS or any of our respective affiliates is obligated
to make a market for, or to repurchase, the notes. There is no assurance that any party will be willing to purchase your notes at any
price in any secondary market.

**<u>Conflict-related Risks</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Our business, hedging and trading activities, and those of MLPF&S, BofAS and our respective affiliates (including trading in shares
of the Underlying Fund or the securities held by the Underlying Fund), 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ There may be potential conflicts of interest involving the calculation agents, one of which is our affiliate and one of which is BofAS.
We have the right to appoint and remove the calculation agents.

**<u>Market Measure-related Risks</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ The sponsor and advisor of the Underlying Fund may adjust the Underlying Fund in a way that affects its value, and these entities
have no obligation to consider your interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ The sponsor of the index underlying the Underlying Fund may adjust such index in a way that affects its level, and has no obligation
to consider your interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ You will have no rights of a holder of shares of the Underlying Fund or the securities held by the Underlying Fund, and you will not
be entitled to receive securities or dividends or other distributions by the issuers of those securities.

Accelerated Return Notes<sup>®</sup> TS-6

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the iShares<sup>®</sup> U.S. Aerospace & Defense ETF, due February , 2027</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ While we, MLPF&S, BofAS or our respective affiliates may from time
to time own shares of the Underlying Fund or the securities held by the Underlying Fund, we, MLPF&S, BofAS and our respective affiliates
do not control the Underlying Fund or any company included in the Underlying Fund, and have not verified any disclosure made by any company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ There are liquidity and management risks associated with the Underlying Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ The performance of the Underlying Fund may not correlate with the performance of the securities held by the Underlying Fund as well
as the net asset value per share of the Underlying Fund, especially during periods of market volatility when the liquidity and the market
price of shares of the Underlying Fund and/or the securities held by the Underlying Fund may be adversely affected, sometimes materially.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ The Redemption Amount will not be adjusted for all corporate events
that could affect the Underlying Fund. See "Description of the ARNs—Anti-Dilution and Discontinuance Adjustments Relating
to Underlying Funds" in product supplement EQUITY ARN-1.

**<u>Tax-related Risks</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ The U.S. federal income tax consequences of an investment in the notes are unclear. There is no direct legal authority regarding the
proper U.S. federal income tax treatment of the notes and we do not plan to request a ruling from the Internal Revenue Service (the "IRS")
with respect to the notes. Consequently, significant aspects of the tax treatment of the notes are uncertain, and the IRS or a court might
not agree with our intended treatment of them, as described in "United States Federal Income Tax Considerations" below. If
the IRS were successful in asserting an alternative treatment of the notes, the tax consequences of the ownership and disposition of the
notes, including the timing and character of income recognized by U.S. investors, and the withholding tax consequences to non-U.S. investors,
might be materially and adversely affected. Even if the treatment of the notes is respected, a note may be treated as a "constructive
ownership transaction," with potentially adverse consequences described below under "United States Federal Income Tax Considerations."
Moreover, future legislation, Treasury regulations or IRS guidance could adversely affect the U.S. federal income tax treatment of the
notes, possibly retroactively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ You should review carefully the sections of this term sheet and the accompanying product supplement entitled "United States
Federal Income Tax Considerations" and consult your tax advisor regarding the U.S. federal income tax consequences of an investment
in the notes, as well as tax consequences arising under the laws of any state, local or non-U.S. taxing jurisdiction.

Additional Risk Factors

**The securities held by the Market Measure are concentrated in one sector.** As a result, the securities that will determine the performance of the notes are concentrated in one sector. Although an investment in the notes will not give holders any ownership or other direct interests in the securities held by the Market Measure, the return on the notes will be subject to certain risks similar to those associated with direct equity investments in the aerospace and defense sector. Accordingly, by investing in the notes, you will not benefit from the diversification which could result from an investment linked to companies that operate in multiple sectors.

**A limited number of stocks held by the Market Measure may affect its price, and the stocks held by the Market Measure are not necessarily representative of the aerospace and defense sector.** While the securities held by the Market Measure are common stocks of companies generally considered to be involved in various segments of the aerospace and defense sector, the securities held by the Market Measure may not follow the price movements of the entire aerospace and defense sector generally. As of the date of this term sheet, a small number of securities accounted for more than half of the Market Measure's holdings. If these securities decline in value, the Market Measure will likely decline in value even if security prices in the aerospace and defense sector generally increase in value.

**Adverse conditions in the aerospace and defense sector may reduce your return on the notes.** All of the stocks held by the Market Measure are issued by companies whose primary lines of business are directly associated with the aerospace and defense sector. The aerospace and defense sector may be significantly affected by changes in government regulations and spending policies, changes in economic conditions and industry consolidation as well as geopolitical events, international conflicts and other factors that interact in complex and unpredictable ways. The financial condition of these companies is heavily influenced by government defense spending, which may be reduced in efforts to control government budgets. The aerospace industry in particular has recently been affected by adverse economic conditions and consolidation within the industry. Any adverse developments affecting the aerospace and defense sector could adversely affect the price of the Market Measure and the value of the notes.

Accelerated Return Notes<sup>®</sup> TS-7

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the iShares<sup>®</sup> U.S. Aerospace & Defense ETF, due February , 2027</u>

The Underlying Fund

All information contained in this term sheet regarding the iShares<sup>®</sup> U.S. Aerospace & Defense ETF (the **"ITA**") has been derived from publicly available information, without independent verification. This information reflects the policies of, and is subject to change by, the fund manager of the ITA and BlackRock Fund Advisors ("**BFA**"). ITA is currently an investment portfolio of iShares<sup>®</sup> Trust and is managed and maintained by its fund manager. BFA is currently the investment adviser to ITA. The consequences of any discontinuance of the ITA are discussed in the section entitled "Description of the ARNs—Anti-Dilution and Discontinuance Adjustments Relating to Underlying Funds" in product supplement EQUITY ARN-1. None of us, the calculation agent, MLPF&S, or BofAS accepts any responsibility for the calculation, maintenance or publication of the ITA or any successor. Neither we nor any agent has independently verified the accuracy or completeness of any information with respect to the ITA in connection with the offer and sale of the notes. The ITA is an exchange-traded fund that trades on NYSE Arca, Inc. under the ticker symbol "ITA."

The ITA seeks to track the investment results, before fees and expenses, of an index composed of U.S. equities in the aerospace and defense sector, which is currently the Dow Jones U.S. Select Aerospace & Defense Index. For more information about the Dow Jones U.S. Select Aerospace & Defense Index, please see "The Dow Jones U.S. Select Aerospace & Defense Index" below. The ITA trades on the CBOE BZX under the ticker symbol "ITA."

BFA uses a representative sampling indexing strategy to manage the ITA. "Representative sampling" is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to that of the Dow Jones U.S. Select Aerospace & Defense Index. The securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as market capitalization and industry weightings), fundamental characteristics (such as return variability and yield) and liquidity measures similar to those of the Dow Jones U.S. Select Aerospace & Defense Index. The ITA may or may not hold all of the securities in the Dow Jones U.S. Select Aerospace & Defense Index.

The Dow Jones U.S. Select Aerospace & Defense Index is a financial calculation, based on a grouping of financial instruments, and is not an investment product, while the ITA is an actual investment portfolio. The performance of the ITA and the Dow Jones U.S. Select Aerospace & Defense Index may vary for a number of reasons, including transaction costs, non-U.S. currency valuations, asset valuations, corporate actions (such as mergers and spin-offs), timing variances and differences between the ITA's portfolio and the Dow Jones U.S. Select Aerospace & Defense Index resulting from the ITA's use of representative sampling or from legal restrictions (such as diversification requirements) that apply to the ITA but not to the Dow Jones U.S. Select Aerospace & Defense Index. "Tracking error" is the divergence of the performance (return) of the ITA's portfolio from that of the Dow Jones U.S. Select Aerospace & Defense Index. Because the ITA uses a representative sampling indexing strategy, it can be expected to have a larger tracking error than if it used a replication indexing strategy. "Replication" is an indexing strategy in which a fund invests in substantially all of the securities in its underlying index in approximately the same proportions as in the underlying index.

iShares<sup>®</sup> Trust is a registered investment company that consists of numerous separate investment portfolios, including the ITA. Information provided to or filed with the SEC by iShares<sup>®</sup> Trust pursuant to the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended, can be located by reference to SEC file numbers 333-92935 and 811-09729, respectively, for iShares<sup>®</sup> Trust through the SEC's website at https://www.sec.gov.

**The Dow Jones U.S. Select Aerospace & Defense Index**

All information contained in this term sheet regarding the Dow Jones U.S. Select Aerospace & Defense Index (the "**Aerospace & Defense Index**"), including, without limitation, its make-up, method of calculation and changes in its components, has been derived from publicly available information, without independent verification. This information reflects the policies of, and is subject to change by, S&P Dow Jones Indices LLC ("**S&P Dow Jones**"). The Aerospace & Defense Index is calculated, maintained and published by S&P Dow Jones. S&P Dow Jones has no obligation to continue to publish, and may discontinue publication of, the Aerospace & Defense Index.

The Aerospace & Defense Index is a capped float-adjusted market capitalization-weighted index that measures the performance of the aerospace and defense sub-sectors, as defined by S&P Dow Jones' proprietary classification system, of the U.S. equity market. These sub-sectors include manufacturers, assemblers and distributors of aircraft and aircraft parts primarily used in commercial or private air transport and producers of components and equipment for the defense industry, including military aircraft, radar equipment and weapons. S&P Dow Jones began calculating the Aerospace & Defense Index on a live basis on April 28, 2006. The level of the Aerospace & Defense Index was set equal to 1000 on December 31, 1991, the base date of the Aerospace & Defense Index. The level of the Aerospace & Defense Index is reported by Bloomberg L.P. under the ticker symbol "DJSASD."

***Constituent Selection***

*Constituent Eligibility*. The eligible index universe includes all common stocks of companies included in the Dow Jones U.S. Broad Stock Market Index that are categorized into the aerospace and defense sub-sectors, based on a proprietary classification system used by S&P Dow Jones. The Dow Jones U.S. Broad Stock Market Index is designed to measure the performance of large-, mid- and small-cap U.S. equity securities. Limited partnerships are not eligible for index membership.

Accelerated Return Notes<sup>®</sup> TS-8

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the iShares<sup>®</sup> U.S. Aerospace & Defense ETF, due February , 2027</u>

*Multiple Classes of Stocks*. All publicly listed multiple share class lines are eligible for index inclusion, subject to meeting the eligibility criteria.

*Market Capitalization*. On the last business day of the month prior to the quarterly rebalancing, a non-constituent company must have float-adjusted market capitalization of at least $500 million to become a constituent. If a company is already an index constituent, its float-adjusted market capitalization must be at least $250 million to remain a constituent.

*Minimum Component Count*. At each quarterly rebalancing, if the component count is less than 22 after applying the rules set forth above, the market capitalization requirement is relaxed so that the next largest non-component in the eligible universe is added until the component count reaches 22.

***Constituent Weightings***

At each rebalancing, the Aerospace & Defense Index is float-adjusted market capitalization weighted, subject to the following constraints:

&nbsp;&nbsp;&nbsp;&nbsp;· The weight of any individual company is capped at 22.50%.

&nbsp;&nbsp;&nbsp;&nbsp;· If any company's weight exceeds 22.50%, that company's weight is capped at 22.50% and all excess weight is proportionally
redistributed to all uncapped companies within the Aerospace & Defense Index. If after this redistribution, any company breaches the
22.50% weight cap, the process is repeated iteratively until no company breaches the 22.50% weight cap.

&nbsp;&nbsp;&nbsp;&nbsp;· Then, the aggregate weight of the companies in the Aerospace & Defense Index with a weight greater than 4.50% is capped at 45%.

These caps are set to allow for a buffer below the 25%, 5% and 50% limits, respectively.

***Index Calculation***

The Aerospace & Defense Index is a capped float-adjusted market capitalization-weighted index. The index value of the Aerospace & Defense Index is the market value of the Aerospace & Defense Index divided by the index divisor:

![](g1125255424b2_ts9a.jpg)

![](g1125255424b2_ts9b.jpg)

where: ![](g1125255424b2_001.jpg) is the number of stocks in the index, ![](g1125255424b2_002.jpg)is the price of stock ![](g1125255424b2_003.jpg), ![](g1125255424b2_004.jpg) is total shares outstanding of stock ![](g1125255424b2_003.jpg), ![](g1125255424b2_005.jpg)is the float factor of stock ![](g1125255424b2_003.jpg) (as defined in "— Float Adjustment" below), and ![](g1125255424b2_006.jpg)is the adjustment factor of stock![](g1125255424b2_007.jpg) assigned at each index rebalancing date, ![](g1125255424b2_008.jpg), which adjusts the market capitalization for all index constituents to achieve the user-defined weight, while maintaining the total market value of the overall index. The AWF for each index constituent, i, at rebalancing date, t, is calculated by:

![](g1125255424b2_ts9c.jpg)

where: ![](g1125255424b2_009.jpg) is the uncapped weight of stock ![](g1125255424b2_003.jpg) on rebalancing date ![](g1125255424b2_008.jpg) based on the float-adjusted market capitalization of all index constituents and ![](g1125255424b2_010.jpg)is the capped weight of stock ![](g1125255424b2_003.jpg) on rebalancing date ![](g1125255424b2_008.jpg) as determined by the capping rule and the process for determining capped weights, as described under "— Constituent Weightings" above.

*Float Adjustment*. Float adjustment means that the number of shares outstanding is reduced to exclude closely held shares from the calculation of the index value because such shares are not available to investors. The goal of float adjustment is to adjust each company's total shares outstanding for long-term strategic shareholders, who often have interests such as maintaining control rather than the shorter-term economic fortunes of the company. Generally, these long-term strategic shareholders include, but are not limited to, officers and directors, private equity, venture capital and special equity firms, asset managers and insurance companies with direct board of director representation, other publicly traded companies that hold shares, holders of restricted shares, company-sponsored employee share plans/trusts, defined contribution plans/savings, and investment plans, foundations or family trusts associated with the company, government entities at all levels (other than government retirement/pension funds), sovereign wealth funds and any individual person who controls a 5% or greater stake in a company as reported in regulatory filings. Restricted shares are generally not included in total shares outstanding except for shares held as part of a lock-up agreement. Shares that are not considered outstanding are also not included in the available float. These generally include treasury stock, stock options, equity participation units, warrants, preferred stock, convertible stock and rights

Accelerated Return Notes<sup>®</sup> TS-9

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the iShares<sup>®</sup> U.S. Aerospace & Defense ETF, due February , 2027</u>

For each constituent, S&P Dow Jones calculates an Investable Weight Factor ("**IWF**"), which represents the portion of the total shares outstanding that are considered part of the public float for purposes of the Aerospace & Defense Index.

*Divisor*. Continuity in index values of the Aerospace & Defense Index is maintained by adjusting its divisor for all changes in its constituents' share capital after its base date. This includes additions and deletions to the Aerospace & Defense Index, rights issues, share buybacks and issuances and non-zero price spin-offs. The value of the Aerospace & Defense Index's divisor over time is, in effect, a chronological summary of all changes affecting the base capital of the Aerospace & Defense Index. The divisor of the Aerospace & Defense Index is adjusted such that the index value of the Aerospace & Defense Index at an instant just prior to a change in base capital equals the index value of the Aerospace & Defense at an instant immediately following that change.

***Index Maintenance***

*Rebalancing*. The Aerospace & Defense Index is rebalanced quarterly, effective at the open of trading on the Monday following the third Friday of March, June, September, and December. Component eligibility is determined as of the last trading day of the month prior to rebalancing. The reference date used for a company's sub-sector classification is the Aerospace & Defense Index's rebalancing effective date. As part of the rebalancing process, the Aerospace & Defense Index's composition, shares and weight caps are adjusted, if necessary.

Stocks are assigned index shares using the closing prices as of seven business days prior to the rebalancing effective date as the reference price. For index selection purposes, the Aerospace & Defense Index uses shares outstanding and IWF figures as of the rebalancing effective date.

*Additions*. Except for spin-offs, no additions are made to the Aerospace & Defense Index between quarterly rebalancings.

*Deletions*. Between rebalancings, a company can be deleted from the Aerospace & Defense Index due to corporate events such as mergers, acquisitions, takeovers, delistings or bankruptcies. Deleted constituents are not replaced between rebalancings. If, during the course of the regular review of company classifications, a constituent's sub-sector classification changes to no longer include the aerospace or defense sub-sector classifications, it is removed from the Aerospace & Defense Index at the next rebalancing. If a constituent's sector classification changes due to a corporate action such as a merger or spin-off, it is evaluated and may be removed from the Aerospace & Defense Index at that time.

Accelerated Return Notes<sup>®</sup> TS-10

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the iShares<sup>®</sup> U.S. Aerospace & Defense ETF, due February , 2027</u>

***The following graph shows the daily historical performance of the Underlying Fund on its primary exchange in the period from January 1, 2015 through December 1, 2025. We obtained this historical data from Bloomberg Finance L.P. We have not independently verified the accuracy or completeness of the information obtained from Bloomberg Finance L.P. On December 1, 2025, the Closing Market Price of the Underlying Fund was $199.24. The graph below may have been adjusted to reflect certain actions, such as stock splits and reverse stock splits.***

**Historical Performance of the Underlying Fund**

![](g1125255424b2_ts11.jpg)

***This historical data on the Underlying Fund is not necessarily indicative of the future performance of the Underlying Fund or what the value of the notes may be. Any historical upward or downward trend in the price per share of the Underlying Fund during any period set forth above is not an indication that the price per share of the Underlying Fund is more or less likely to increase or decrease at any time over the term of the notes.***

Before investing in the notes, you should consult publicly available sources for the prices of the Underlying Fund.

Accelerated Return Notes<sup>®</sup> TS-11

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the iShares<sup>®</sup> U.S. Aerospace & Defense ETF, due February , 2027</u>

Supplement to the Plan of Distribution

Under our distribution agreement with BofAS, BofAS will purchase the notes from us as principal at the public offering price indicated on the cover of this term sheet, less the indicated underwriting discount.

BofAS has informed us of the information in the following paragraph. MLPF&S will purchase the notes from BofAS for resale, and will receive a selling concession in connection with the sale of the notes in an amount up to the full amount of underwriting discount set forth on the cover of this term sheet.

We will pay a fee to LFT Securities, LLC for providing certain electronic platform services with respect to this offering, which reduces the economic terms of the notes to you. An affiliate of BofAS has an ownership interest in LFT Securities, LLC.

We may deliver the notes against payment therefor in New York, New York on a date that is greater than one business day following the pricing date. Under Rule 15c6-1 of the Securities Exchange Act of 1934, trades in the secondary market generally are required to settle in one business day, unless the parties to any such trade expressly agree otherwise. Accordingly, if the initial settlement of the notes occurs more than one business days from the pricing date, purchasers who wish to trade the notes more than one business day prior to the original issue date will be required to specify alternative settlement arrangements to prevent a failed settlement.

The notes will not be listed on any securities exchange. In the original offering of the notes, the notes will be sold in minimum investment amounts of 100 units. If you place an order to purchase the notes, you are consenting to MLPF&S and/or one of its affiliates acting as a principal in effecting the transaction for your account.

BofAS has advised us that MLPF&S and BofAS may repurchase and resell the notes, with repurchases and resales being made at prices related to then-prevailing market prices or at negotiated prices determined by reference to their pricing models at their discretion, and these prices will include MLPF&S's and BofAS's trading commissions and mark-ups or mark-downs. MLPF&S and BofAS may act as principal or agent in these market-making transactions; however, neither is obligated to engage in any such transactions. BofAS has advised us that at MLPF&S's and BofAS's discretion, for a short, undetermined initial period after the issuance of the notes, MLPF&S and BofAS may offer to buy the notes in the secondary market at a price that may exceed the initial estimated value of the notes. Any price offered by MLPF&S or BofAS for the notes is expected to be based on then-prevailing market conditions and other considerations, including the performance of the Underlying Fund and the remaining term of the notes. However, none of us, MLPF&S, BofAS or any of our respective affiliates is obligated to purchase your notes at any price or at any time, and we cannot assure you that we, MLPF&S, BofAS or any of our respective affiliates will purchase your notes at a price that equals or exceeds the initial estimated value of the notes.

BofAS has informed us that, as of the date of this term sheet, it expects that if you hold your notes in a BofAS account, the value of the notes shown on your account statement will be based on BofAS's estimate of the value of the notes if BofAS or another of its affiliates were to make a market in the notes, which it is not obligated to do. That estimate will be based upon the price that BofAS may pay for the notes in light of then-prevailing market conditions and other considerations, as mentioned above, and will include transaction costs. At certain times, this price may be higher than or lower than the initial estimated value of the notes.

The distribution of the Note Prospectus in connection with these offers or sales will be solely for the purpose of providing investors with the description of the terms of the notes that was made available to investors in connection with their initial offering. Secondary market investors should not, and will not be authorized to, rely on the Note Prospectus for information regarding BMO or for any purpose other than that described in the immediately preceding sentence.

An investor's household, as referenced on the cover of this term sheet, will generally include accounts held by any of the following, as determined by MLPF&S in its discretion and acting in good faith based upon information then available to MLPF&S:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the investor's spouse (including a domestic partner), siblings, parents, grandparents, spouse's parents, children and
grandchildren, but excluding accounts held by aunts, uncles, cousins, nieces, nephews or any other family relationship not directly above
or below the individual investor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a family investment vehicle, including foundations, limited partnerships and personal holding companies, but only if the beneficial
owners of the vehicle consist solely of the investor or members of the investor's household as described above; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a trust where the grantors and/or beneficiaries of the trust consist solely of the investor or members of the investor's household
as described above; provided that, purchases of the notes by a trust generally cannot be aggregated together with any purchases made by
a trustee's personal account.

Purchases in retirement accounts will not be considered part of the same household as an individual investor's personal or other non-retirement account, except for individual retirement accounts ("IRAs"), simplified employee pension plans ("SEPs"), savings incentive match plan for employees ("SIMPLEs"), and single-participant or owners only accounts (i.e., retirement accounts held by self-employed individuals, business owners or partners with no employees other than their spouses).

Please contact your Merrill financial advisor if you have any questions about the application of these provisions to your specific circumstances or think you are eligible.

Accelerated Return Notes<sup>®</sup> TS-12

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the iShares<sup>®</sup> U.S. Aerospace & Defense ETF, due February , 2027</u>

Structuring the Notes

The notes are our debt securities, the return on which is linked to the performance of the Underlying Fund. As is the case for all of our debt securities, including our market-linked notes, the economic terms of the notes reflect our actual or perceived creditworthiness at the time of pricing. In addition, because market-linked notes result in increased operational, funding and liability management costs to us, we typically borrow the funds under these notes at a rate that is more favorable to us than the rate which we refer to as our internal funding rate, which is the rate that we might pay for a conventional fixed or floating rate debt security. This generally relatively lower internal funding rate, which is reflected in the economic terms of the notes, along with costs associated with offering, structuring and hedging the notes, results in the initial estimated value of the notes on the pricing date being less than the public offering price.

At maturity, we are required to pay the Redemption Amount to holders of the notes, which will be calculated based on the $10 per unit principal amount and will depend on the performance of the Underlying Fund. In order to meet these payment obligations, at the time we issue the notes, we expect to enter into certain hedging arrangements (which may include call options, put options or other derivatives) with BofAS or one of its affiliates. The terms of these hedging arrangements are determined by seeking bids from market participants, which may include MLPF&S, BofAS and/or one of their or our respective affiliates, and take into account a number of factors, including our creditworthiness, interest rate movements, the volatility of the Underlying Fund, the tenor of the notes and the tenor of the hedging arrangements. The economic terms of the notes and their initial estimated value depend in part on the terms of these hedging arrangements.

BofAS has advised us that the hedging arrangements will include a hedging related charge of approximately $0.05 per unit, reflecting an estimated profit to be credited to BofAS from these transactions. Since hedging entails risk and may be influenced by unpredictable market forces, additional profits and losses from these hedging arrangements may be realized by our affiliates, MLPF&S, BofAS or any other hedge providers. Any profit in connection with such hedging activity will be in addition to any other compensation that the agent, and their or our respective affiliates receive for the sale of notes, which creates an additional incentive to sell the notes to you.

For further information, see "Risk Factors—Valuation- and Market-related Risks" beginning on page PS-6 and "Use of Proceeds and Hedging" on page PS-20 of product supplement EQUITY ARN-1.

Accelerated Return Notes<sup>®</sup> TS-13

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the iShares<sup>®</sup> U.S. Aerospace & Defense ETF, due February , 2027</u>

Summary of Canadian Federal Income Tax Consequences

For a discussion of the material Canadian federal income tax consequences relating to an investment in the notes, please see the section entitled "Canadian Federal Income Tax Summary" in the product supplement EQUITY ARN-1.

United States Federal Income Tax Considerations

Although there is uncertainty regarding the U.S. federal income tax consequences of an investment in the notes due to the lack of governing authority, in the opinion of our counsel Davis Polk & Wardwell LLP, under current law, and based on current market conditions, it is reasonable to treat a note as a single financial contract that is an "open transaction" for U.S. federal income tax purposes. However, because our counsel's opinion is based in part on market conditions as of the date of this document, it is subject to confirmation in the final pricing supplement. Assuming this treatment of the notes is respected, the tax consequences are as outlined in the discussion under "United States Federal Income Tax Considerations—Tax Consequences to U.S. Holders—ARNs Treated as Open Transactions" in the accompanying product supplement.

Even if the treatment of the notes as "open transactions" is respected, a purchase of a note may be treated as entry into a "constructive ownership transaction," within the meaning of Section 1260 of the Code. In that case, all or a portion of any long-term capital gain a U.S. investor would otherwise recognize in respect of a note would be recharacterized as ordinary income to the extent such gain exceeded the "net underlying long-term capital gain." Any long-term capital gain recharacterized as ordinary income under Section 1260 would be treated as accruing at a constant rate over the period the U.S. investor held the securities, and the U.S. investor would be subject to an interest charge in respect of the deemed tax liability on the income treated as accruing in prior tax years. Due to the lack of governing authority there is significant uncertainty as to whether or how these rules will apply to the notes. U.S. investors should read the section entitled "United States Federal Income Tax Considerations—Tax Consequences to U.S. Holders—ARNs Treated as Open Transactions—Possible Application of Section 1260 of the Code" in the accompanying product supplement for additional information and consult their tax advisors regarding the potential application of the "constructive ownership" rule.

We do not plan to request a ruling from the Internal Revenue Service (the "IRS") regarding the treatment of the notes. If the IRS were successful in asserting an alternative treatment of the notes, the tax consequences of the ownership and disposition of the notes, including the timing and character of income recognized by U.S. investors, and the withholding tax consequences to non-U.S. investors, might be materially and adversely affected. For example, under one alternative characterization the notes may be treated as contingent payment debt instruments, which would require U.S. investors to accrue income periodically based on a "comparable yield" and generally would require non-U.S. investors to certify their non-U.S. status on an IRS Form W-8 to avoid a 30% (or a lower treaty rate) U.S. withholding tax. In addition, the U.S. Treasury Department and the IRS have requested comments on various issues regarding the U.S. federal income tax treatment of "prepaid forward contracts" and similar financial instruments and have indicated that such transactions may be the subject of future regulations or other guidance. Furthermore, members of Congress have proposed legislative changes to the tax treatment of derivative contracts. Any legislation, Treasury regulations or other guidance promulgated after consideration of these issues could materially and adversely affect the tax consequences of an investment in the notes, possibly with retroactive effect.

As discussed in the accompanying product supplement, Section 871(m) of the Code and the Treasury regulations thereunder ("Section 871(m)") generally impose a 30% (or lower treaty rate) withholding tax on "dividend equivalents" paid or deemed paid to non-U.S. investors with respect to certain financial instruments linked to equities that could pay U.S.-source dividends for U.S. federal income tax purposes ("underlying securities"), as defined under the applicable Treasury regulations, or indices that include underlying securities. Section 871(m) generally applies to financial instruments that substantially replicate the economic performance of one or more underlying securities, as determined based on tests set forth in the applicable Treasury regulations. Pursuant to an IRS notice, Section 871(m) will not apply to notes issued before January 1, 2027 that do not have a delta of one with respect to any underlying security. Based on the terms of the notes and current market conditions, we expect that the notes will not have a delta of one with respect to any underlying security on the pricing date. However, we will provide an updated determination in the final pricing supplement. Our determination is not binding on the IRS, and the IRS may disagree with this determination. Section 871(m) is complex and its application may depend on a non-U.S. investor's particular circumstances, including whether the non-U.S. investor enters into other transactions with respect to an underlying security. If withholding is required, we will not be required to pay any additional amounts with respect to the amounts so withheld. Non-U.S. investors should consult their tax advisors regarding the potential application of Section 871(m) to the notes.

Both U.S. and non-U.S. investors considering an investment in the notes should read the discussion under "United States Federal Income Tax Considerations" in the accompanying product supplement and consult their tax advisors regarding all aspects of the U.S. federal income and estate tax consequences of an investment in the notes, including possible alternative treatments, and any tax consequences arising under the laws of any state, local or non-U.S. taxing jurisdiction.

Accelerated Return Notes<sup>®</sup> TS-14