UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number 811-21126

 

Name of Fund: BlackRock Municipal Income Trust II (BLE)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Municipal Income Trust II, 55 East 52nd Street, New York, NY 10055

 

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

 

Date of fiscal year end: 08/31/2012

 

Date of reporting period: 05/31/2012

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments May 31, 2012 (Unaudited)

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 0.4%

 

 

 

 

 

 

 

County of Jefferson Alabama, RB, Series
A, 5.25%, 1/01/19

 

$

1,620

 

$

1,612,807

 

Arizona — 2.7%

 

 

 

 

 

 

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

5,635

 

 

5,781,003

 

5.00%, 12/01/37

 

 

3,990

 

 

4,077,022

 

 

 

 

 

 

 

9,858,025

 

California — 10.6%

 

 

 

 

 

 

 

Bay Area Toll Authority, Refunding RB,
San Francisco Bay Area, Series F-1,
5.63%, 4/01/44

 

 

2,480

 

 

2,813,808

 

California County Tobacco Securitization
Agency, RB, CAB, Stanislaus, Sub-
Series C, 6.30%, 6/01/55 (a)

 

 

9,710

 

 

116,714

 

California Health Facilities Financing
Authority, RB:

 

 

 

 

 

 

 

Stanford Hospital Clinics,
Series A, 5.00%, 8/15/51

 

 

1,290

 

 

1,398,270

 

Sutter Health, Series B,
6.00%, 8/15/42

 

 

3,500

 

 

4,138,365

 

California HFA, RB, Series K, AMT Home
Mortgage, 5.50%, 2/01/42

 

 

1,925

 

 

1,994,762

 

California State Public Works Board, RB,
Various Capital Project, Sub-Series I-1,
6.38%, 11/01/34

 

 

1,280

 

 

1,532,838

 

California Statewide Communities
Development Authority, RB, Kaiser
Permanente, Series A, 5.00%,
4/01/42

 

 

2,400

 

 

2,593,416

 

Los Angeles Department of Airports, RB,
Series A, 5.25%, 5/15/39

 

 

860

 

 

957,240

 

San Francisco City & County
Redevelopment Agency, Special Tax
Bonds, District No. 6, Mission Bay
South Public Improvements, 6.63%,
8/01/27

 

 

3,120

 

 

3,129,922

 

San Marcos Unified School District, CAB,
SAN, Election of 2010, Series B (a):

 

 

 

 

 

 

 

5.36%, 8/01/33

 

 

3,000

 

 

1,037,460

 

5.66%, 8/01/43

 

 

2,500

 

 

482,300

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

6.00%, 3/01/33

 

 

1,760

 

 

2,119,902

 

6.50%, 4/01/33

 

 

10,670

 

 

12,976,001

 

5.00%, 10/01/41

 

 

3,320

 

 

3,562,924

 

 

 

 

 

 

 

38,853,922

 

Colorado — 1.7%

 

 

 

 

 

 

 

Colorado Health Facilities Authority,
Refunding RB:

 

 

 

 

 

 

 

The Evangelical Lutheran Good
Samaritan Society Project, 5.00%,
12/01/42

 

 

1,920

 

 

1,977,907

 

Catholic Healthcare, Series A,
5.50%, 7/01/34

 

 

2,330

 

 

2,627,821

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Colorado (concluded)

 

 

 

 

 

 

 

Park Creek Metropolitan District
Colorado, Refunding RB, Senior,
Limited Tax, Property Tax, 5.50%,
12/01/37

 

$

1,375

 

$

1,448,645

 

 

 

 

 

 

 

6,054,373

 

Connecticut — 0.4%

 

 

 

 

 

 

 

Connecticut State Health & Educational
Facility Authority, RB, Ascension
Health Senior Credit, 5.00%,
11/15/40

 

 

1,505

 

 

1,631,435

 

Delaware — 1.6%

 

 

 

 

 

 

 

County of Sussex Delaware, RB, NRG
Energy, Inc., Indian River Project,
6.00%, 10/01/40

 

 

1,240

 

 

1,376,400

 

Delaware State EDA, RB, Exempt
Facilities, Indian River Power, 5.38%,
10/01/45

 

 

4,430

 

 

4,643,260

 

 

 

 

 

 

 

6,019,660

 

District of Columbia — 6.2%

 

 

 

 

 

 

 

District of Columbia Tobacco Settlement
Financing Corp., Refunding RB, Asset-
Backed:

 

 

 

 

 

 

 

6.50%, 5/15/33

 

 

7,500

 

 

8,141,325

 

6.75%, 5/15/40

 

 

11,500

 

 

11,718,500

 

Metropolitan Washington Airports
Authority, RB, First Senior Lien, Series
A:

 

 

 

 

 

 

 

5.00%, 10/01/39

 

 

550

 

 

595,529

 

5.25%, 10/01/44

 

 

2,000

 

 

2,183,980

 

 

 

 

 

 

 

22,639,334

 

Florida — 6.1%

 

 

 

 

 

 

 

City of Leesburg Florida, RB, Leesburg
Regional Medical Center Project,
5.50%, 7/01/32

 

 

1,000

 

 

1,000,410

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

Miami International Airport, Series A
AMT (AGC), 5.25%, 10/01/38

 

 

2,855

 

 

3,008,656

 

Water & Sewer System Revenue
(AGM), 5.00%, 10/01/39

 

 

5,000

 

 

5,492,300

 

County of Miami-Dade Florida,
Refunding RB, Miami International
Airport, Series A-1, 5.38%, 10/01/41

 

 

1,255

 

 

1,400,681

 

Live Oak Community Development
District No. 1, Special Assessment
Bonds, Series A, 6.30%, 5/01/34

 

 

3,040

 

 

3,125,667

 

Miami Beach Health Facilities Authority,
RB, Mount Sinai Medical Center of
Florida, 6.75%, 11/15/21

 

 

3,640

 

 

3,992,097

 

Mid-Bay Bridge Authority, RB, Series A,
7.25%, 10/01/40

 

 

2,500

 

 

2,931,525

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2012

1


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Florida (concluded)

 

 

 

 

 

 

 

Stevens Plantation Community
Development District, Special
Assessment Bonds, Series A, 7.10%,
5/01/35

 

$

1,895

 

$

1,421,383

 

 

 

 

 

 

 

22,372,719

 

Georgia — 0.3%

 

 

 

 

 

 

 

DeKalb Private Hospital Authority,
Refunding RB, Children’s Healthcare,
5.25%, 11/15/39

 

 

915

 

 

996,700

 

Hawaii — 0.4%

 

 

 

 

 

 

 

State of Hawaii, Refunding RB, Series A,
5.25%, 7/01/30

 

 

1,480

 

 

1,650,999

 

Illinois — 15.5%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO,
Series A, 5.50%, 12/01/39

 

 

2,300

 

 

2,629,084

 

Chicago Transit Authority, RB, Sales Tax
Receipts, 5.25%, 12/01/40

 

 

1,150

 

 

1,288,748

 

City of Chicago Illinois, GO, Project,
Series A, 5.00%, 1/01/33

 

 

4,940

 

 

5,441,459

 

City of Chicago Illinois, RB, O’Hare
International Airport Revenue,
General, Third Lien:

 

 

 

 

 

 

 

Series A, 5.75%, 1/01/39

 

 

5,000

 

 

5,799,550

 

Series C, 6.50%, 1/01/41

 

 

6,430

 

 

7,780,300

 

City of Chicago Illinois, Refunding RB:

 

 

 

 

 

 

 

5.25%, 1/01/38

 

 

895

 

 

1,009,900

 

Water Revenue, 5.00%,
11/01/42

 

 

3,130

 

 

3,496,210

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

MJH Education Assistance IV
LLC, Sub-Series B, 5.38%,
6/01/35 (b)(c)

 

 

900

 

 

89,991

 

Navistar International,
Recovery Zone, 6.50%,
10/15/40

 

 

1,675

 

 

1,847,810

 

Illinois Finance Authority, Refunding RB:

 

 

 

 

 

 

 

Ascension Health, Series A,
5.00%, 11/15/37

 

 

1,060

 

 

1,157,584

 

Ascension Health, Series A,
5.00%, 11/15/42

 

 

1,925

 

 

2,089,491

 

Central Dupage Health, Series
B, 5.50%, 11/01/39

 

 

1,750

 

 

1,940,645

 

Friendship Village
Schaumburg, Series A,
5.63%, 2/15/37

 

 

455

 

 

433,397

 

Illinois Sports Facilities Authority, RB,
State Tax Supported (AMBAC), 5.50%,
6/15/30

 

 

10,500

 

 

11,444,055

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

Metropolitan Pier & Exposition Authority,
Refunding RB, McCormick Place
Expansion Project:

 

 

 

 

 

 

 

Series B (AGM), 5.00%, 6/15/50

 

$

3,430

 

$

3,614,328

 

Series B-2, 5.00%, 6/15/50

 

 

2,725

 

 

2,870,488

 

Railsplitter Tobacco Settlement
Authority, RB:

 

 

 

 

 

 

 

5.50%, 6/01/23

 

 

1,470

 

 

1,693,469

 

6.00%, 6/01/28

 

 

1,255

 

 

1,440,087

 

State of Illinois, RB, Build Illinois, Series
B, 5.25%, 6/15/34

 

 

685

 

 

766,453

 

 

 

 

 

 

 

56,833,049

 

Indiana — 2.6%

 

 

 

 

 

 

 

Indiana Finance Authority, RB, Sisters of
St. Francis Health, 5.25%, 11/01/39

 

 

915

 

 

991,412

 

Indiana Finance Authority, Refunding
RB, Ascension Health Senior Credit,
Series B-5, 5.00%, 11/15/36

 

 

1,500

 

 

1,576,875

 

Indiana Finance Authority Wastewater
Utility, Refunding RB, First Lien, CWA
Authority, Series A, 5.25%, 10/01/38

 

 

1,720

 

 

1,946,111

 

Indiana Health Facility Financing
Authority, Refunding RB, Methodist
Hospital Inc., 5.38%, 9/15/22

 

 

3,675

 

 

3,676,176

 

Indiana Municipal Power Agency, RB,
Series B, 6.00%, 1/01/39

 

 

1,200

 

 

1,384,908

 

 

 

 

 

 

 

9,575,482

 

Iowa — 0.7%

 

 

 

 

 

 

 

Iowa Student Loan Liquidity Corp.,
Refunding RB, Series A-1, AMT,
5.15%, 12/01/22

 

 

2,140

 

 

2,401,123

 

Kansas — 0.5%

 

 

 

 

 

 

 

Kansas Development Finance Authority,
Refunding RB, Sisters of Leavenworth,
Series A, 5.00%, 1/01/40

 

 

1,755

 

 

1,884,203

 

Kentucky — 0.3%

 

 

 

 

 

 

 

Kentucky Economic Development
Finance Authority, RB, Owensboro
Medical Health System, Series A,
6.38%, 6/01/40

 

 

1,105

 

 

1,274,993

 

Louisiana — 3.3%

 

 

 

 

 

 

 

Louisiana Local Government
Environmental Facilities & Community
Development Authority, RB, Westlake
Chemical Corp., Series A-1, 6.50%,
11/01/35

 

 

3,650

 

 

4,155,233

 

Parish of Saint John the Baptist
Louisiana, RB, Marathon Oil Corp.,
Series A, 5.13%, 6/01/37

 

 

7,590

 

 

7,903,012

 

 

 

 

 

 

 

12,058,245

 

Maine — 0.5%

 

 

 

 

 

 

 

Maine State Turnpike Authority, RB,
Series A, 5.00%, 7/01/42

 

 

1,615

 

 

1,823,674

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2012

2


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Maryland — 1.2%

 

 

 

 

 

 

 

Maryland EDC, RB, Transportation
Facilities Project, Series A, 5.75%,
6/01/35

 

$

475

 

$

511,053

 

Maryland EDC, Refunding RB, CNX
Marine Terminals, Inc., 5.75%,
9/01/25

 

 

1,000

 

 

1,061,560

 

Maryland Health & Higher Educational
Facilities Authority, Refunding RB,
Charlestown Community, 6.25%,
1/01/41

 

 

2,400

 

 

2,692,560

 

 

 

 

 

 

 

4,265,173

 

Massachusetts — 0.3%

 

 

 

 

 

 

 

Massachusetts Health & Educational
Facilities Authority, Refunding RB,
Partners Healthcare, Series J1,
5.00%, 7/01/39

 

 

955

 

 

1,025,556

 

Michigan — 2.0%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Senior Lien,
Series A, 5.25%, 7/01/41

 

 

3,355

 

 

3,452,496

 

Kalamazoo Hospital Finance Authority,
Refunding RB, Bronson Methodist
Hospital, 5.50%, 5/15/36

 

 

1,500

 

 

1,637,040

 

Michigan State Hospital Finance
Authority, Refunding RB, Henry Ford
Health System, Series A, 5.25%,
11/15/46

 

 

2,305

 

 

2,396,486

 

 

 

 

 

 

 

7,486,022

 

Minnesota — 2.2%

 

 

 

 

 

 

 

Tobacco Securitization Authority
Minnesota, Refunding RB, Tobacco
Settlement Revenue, Series B:

 

 

 

 

 

 

 

5.25%, 3/01/25

 

 

4,905

 

 

5,605,140

 

5.25%, 3/01/31

 

 

2,065

 

 

2,299,811

 

 

 

 

 

 

 

7,904,951

 

Missouri — 2.0%

 

 

 

 

 

 

 

370/Missouri Bottom Road/Taussig
Road Transportation Development
District, RB, 7.20%, 5/01/33

 

 

6,000

 

 

6,046,260

 

Missouri State Health & Educational
Facilities Authority, RB, Senior Living
Facilities, Lutheran Senior Home,
5.50%, 2/01/42

 

 

1,135

 

 

1,184,645

 

 

 

 

 

 

 

7,230,905

 

Multi-State — 3.9%

 

 

 

 

 

 

 

Centerline Equity Issuer Trust (d)(e):

 

 

 

 

 

 

 

5.75%, 5/15/15

 

 

1,000

 

 

1,089,930

 

6.00%, 5/15/15

 

 

5,000

 

 

5,480,950

 

6.00%, 5/15/19

 

 

3,500

 

 

4,111,310

 

6.30%, 5/15/19

 

 

3,000

 

 

3,573,510

 

 

 

 

 

 

 

14,255,700

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Nebraska — 1.5%

 

 

 

 

 

 

 

Central Plains Energy Project Nebraska,
RB, Project #3:

 

 

 

 

 

 

 

5.25%, 9/01/37

 

$

895

 

$

945,827

 

5.00%, 9/01/42

 

 

1,570

 

 

1,604,022

 

Lancaster County Hospital Authority No.
1, Refunding RB, Immanuel Obligation
Group, 5.63%, 1/01/40

 

 

1,245

 

 

1,364,234

 

Sarpy County Hospital Authority No. 1,
Refunding RB, Immanuel Obligation
Group, 5.63%, 1/01/40

 

 

1,635

 

 

1,760,715

 

 

 

 

 

 

 

5,674,798

 

Nevada — 0.7%

 

 

 

 

 

 

 

County of Clark Nevada, Refunding RB,
Alexander Dawson School Nevada
Project, 5.00%, 5/15/29

 

 

2,465

 

 

2,575,407

 

New Jersey — 6.7%

 

 

 

 

 

 

 

New Jersey EDA, RB, Continental Airlines
Inc. Project, AMT, 7.20%, 11/15/30
(f)

 

 

10,100

 

 

10,138,178

 

New Jersey EDA, Refunding RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.00%,
6/15/24

 

 

455

 

 

508,062

 

Cigarette Tax, 5.00%,
6/15/25

 

 

610

 

 

674,746

 

Special Assessment Bonds,
Kapkowski Road Landfill
Project, 6.50%, 4/01/28

 

 

7,475

 

 

8,767,428

 

New Jersey Transportation Trust Fund
Authority, RB, Transportation System,
5.25%, 6/15/36

 

 

2,690

 

 

3,058,745

 

Port Authority of New York & New Jersey,
RB, JFK International Air Terminal,
6.00%, 12/01/42

 

 

1,375

 

 

1,525,906

 

 

 

 

 

 

 

24,673,065

 

New York — 3.2%

 

 

 

 

 

 

 

Albany Industrial Development Agency,
RB, New Covenant Charter School
Project, Series A, 7.00%, 5/01/35
(b)(c)

 

 

985

 

 

226,560

 

Metropolitan Transportation Authority,
Refunding RB, Transportation, Series
D, 5.25%, 11/15/40

 

 

1,325

 

 

1,478,024

 

New York City Industrial Development
Agency, RB, American Airlines Inc.,
JFK International Airport, AMT, 7.75%,
8/01/31 (b)(f)

 

 

6,700

 

 

6,885,858

 

New York Liberty Development Corp.,
Refunding RB, Second Priority, Bank
of America Tower at One Bryant Park
Project, 6.38%, 7/15/49

 

 

1,335

 

 

1,501,341

 

Port Authority of New York & New Jersey,
RB, JFK International Air Terminal,
6.00%, 12/01/36

 

 

1,410

 

 

1,580,765

 

 

 

 

 

 

 

11,672,548

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2012

3


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

North Carolina — 2.0%

 

 

 

 

 

 

 

Gaston County Industrial Facilities &
Pollution Control Financing Authority
North Carolina, RB, Exempt Facilities
National Gypsum Co. Project, AMT,
5.75%, 8/01/35

 

$

6,500

 

$

5,708,820

 

North Carolina Medical Care
Commission, RB, Duke University
Health System, Series A, 5.00%,
6/01/42

 

 

1,525

 

 

1,647,259

 

 

 

 

 

 

 

7,356,079

 

Ohio — 1.9%

 

 

 

 

 

 

 

County of Allen Ohio, Refunding RB,
Catholic Healthcare, Series A, 5.25%,
6/01/38

 

 

3,405

 

 

3,710,974

 

County of Montgomery Ohio, Refunding
RB, Catholic Healthcare, Series A,
5.00%, 5/01/39

 

 

3,025

 

 

3,211,733

 

 

 

 

 

 

 

6,922,707

 

Oregon — 0.2%

 

 

 

 

 

 

 

City of Tigard Washington County
Oregon, Refunding RB, Water System:

 

 

 

 

 

 

 

5.00%, 8/01/37

 

 

275

 

 

311,531

 

5.00%, 8/01/42

 

 

320

 

 

361,334

 

 

 

 

 

 

 

672,865

 

Pennsylvania — 1.0%

 

 

 

 

 

 

 

Allegheny County Hospital Development
Authority, Refunding RB, Health
System, West Penn, Series A, 5.38%,
11/15/40

 

 

1,495

 

 

1,241,343

 

Pennsylvania Economic Development
Financing Authority, RB, Aqua
Pennsylvania Inc. Project, 5.00%,
11/15/40

 

 

2,065

 

 

2,272,388

 

 

 

 

 

 

 

3,513,731

 

Puerto Rico — 5.6%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Aqueduct &
Sewer Authority, RB, Senior Lien,
Series A, 5.25%, 7/01/42

 

 

625

 

 

628,375

 

Puerto Rico Sales Tax Financing Corp.,
RB:

 

 

 

 

 

 

 

CAB, Series A, 6.58%,
8/01/33 (a)

 

 

13,600

 

 

4,320,040

 

CAB, Series A, 6.61%,
8/01/34 (a)

 

 

5,500

 

 

1,627,010

 

CAB, Series A, 6.62%,
8/01/35 (a)

 

 

14,055

 

 

3,876,369

 

CAB, Series A, 6.64%,
8/01/36 (a)

 

 

11,875

 

 

3,047,481

 

First Sub-Series A, 6.50%,
8/01/44

 

 

6,100

 

 

7,191,473

 

 

 

 

 

 

 

20,690,748

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

South Carolina — 3.1%

 

 

 

 

 

 

 

South Carolina Jobs-EDA, Refunding RB,
Palmetto Health Alliance, Series A,
6.25%, 8/01/31

 

$

2,640

 

$

2,787,629

 

South Carolina State Ports Authority, RB,
5.25%, 7/01/40

 

 

3,595

 

 

3,983,763

 

South Carolina State Public Service
Authority, Refunding RB:

 

 

 

 

 

 

 

Santee Cooper Project, Series
C, 5.00%, 12/01/36

 

 

1,685

 

 

1,889,222

 

Series D, 5.00%, 12/01/43

 

 

2,290

 

 

2,557,243

 

 

 

 

 

 

 

11,217,857

 

Tennessee — 3.5%

 

 

 

 

 

 

 

Knox County Health Educational &
Housing Facilities Board Tennessee,
Refunding RB, CAB, Series A (AGM),
5.77%, 1/01/21 (a)

 

 

20,405

 

 

12,707,418

 

Rutherford County Health & Educational
Facilities Board, Refunding RB,
Ascension Health, Series C, 5.00%,
11/15/47

 

 

230

 

 

250,603

 

 

 

 

 

 

 

12,958,021

 

Texas — 15.3%

 

 

 

 

 

 

 

Brazos River Authority, RB, TXU Electric,
Series A, AMT, 8.25%, 10/01/30

 

 

2,400

 

 

359,328

 

Central Texas Regional Mobility
Authority, RB, Senior Lien, 6.25%,
1/01/46

 

 

2,350

 

 

2,629,392

 

City of Dallas Texas, Refunding RB,
5.00%, 10/01/35

 

 

1,650

 

 

1,878,608

 

City of Houston Texas, Refunding RB:

 

 

 

 

 

 

 

Combined, First Lien, Series A
(AGC), 6.00%, 11/15/35

 

 

9,145

 

 

11,053,379

 

Senior Lien, Series A, 5.50%,
7/01/39

 

 

1,675

 

 

1,861,930

 

Gulf Coast Waste Disposal Authority,
Refunding RB, Series A, AMT, 6.10%,
8/01/24

 

 

5,000

 

 

5,032,350

 

Harris County-Houston Sports Authority,
Refunding RB, Third Lien, Series A-3
(NPFGC), 5.96%, 11/15/36 (a)

 

 

25,375

 

 

5,566,767

 

Lower Colorado River Authority,
Refunding RB, Series A (NPFGC),
5.00%, 5/15/13 (g)

 

 

5

 

 

5,227

 

North Texas Tollway Authority,
Refunding RB, Toll 2nd Tier, Series F,
6.13%, 1/01/31

 

 

6,790

 

 

7,478,913

 

San Antonio Energy Acquisition Public
Facility Corp., RB, Gas Supply, 5.50%,
8/01/24

 

 

3,600

 

 

4,078,800

 

Tarrant County Cultural Education
Facilities Finance Corp., RB, Scott &
White Healthcare, 6.00%, 8/15/45

 

 

4,410

 

 

5,125,302

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2012

4


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Texas (concluded)

 

 

 

 

 

 

 

Texas Private Activity Bond Surface
Transportation Corp., RB, Senior Lien:

 

 

 

 

 

 

 

LBJ Infrastructure Group LLC,
LBJ Freeway Managed
Lanes Project, 7.00%,
6/30/40

 

$

3,000

 

$

3,568,320

 

NTE Mobility Partners LLC,
North Tarrant Express
Managed Lanes Project,
6.88%, 12/31/39

 

 

3,000

 

 

3,514,290

 

University of Texas System, Refunding
RB, Financing System Bonds, Series
B, 5.00%, 8/15/43

 

 

3,350

 

 

3,865,029

 

 

 

 

 

 

 

56,017,635

 

Virginia — 1.8%

 

 

 

 

 

 

 

City of Norfolk Virginia, Refunding RB,
Series B (AMBAC), 5.50%, 2/01/31
(g)

 

 

1,240

 

 

1,241,091

 

Virginia Small Business Financing
Authority, RB, Senior Lien, Elizabeth
River Crossings Opco LLC Project,
AMT:

 

 

 

 

 

 

 

5.25%, 1/01/32

 

 

1,755

 

 

1,824,586

 

6.00%, 1/01/37

 

 

2,000

 

 

2,196,700

 

5.50%, 1/01/42

 

 

1,255

 

 

1,315,315

 

 

 

 

 

 

 

6,577,692

 

Washington — 2.3%

 

 

 

 

 

 

 

Bellingham Washington, Water & Sewer
Revenue, 5.00%, 8/01/36

 

 

5,050

 

 

5,715,539

 

Washington Health Care Facilities
Authority, RB, Swedish Health
Services, Series A, 6.75%, 11/15/41

 

 

2,190

 

 

2,901,619

 

 

 

 

 

 

 

8,617,158

 

Wisconsin — 1.9%

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit
Group, 5.00%, 11/15/30

 

 

1,790

 

 

1,992,145

 

Ascension Health Senior Credit
Group, 5.00%, 11/15/33

 

 

910

 

 

1,000,763

 

Aurora Health Care, 6.40%,
4/15/33

 

 

3,930

 

 

4,019,368

 

 

 

 

 

 

 

7,012,276

 

Wyoming — 1.5%

 

 

 

 

 

 

 

County of Sweetwater Wyoming,
Refunding RB, Idaho Power Co.
Project, 5.25%, 7/15/26

 

 

3,355

 

 

3,798,665

 

Wyoming Municipal Power Agency, RB,
Series A:

 

 

 

 

 

 

 

5.50%, 1/01/33

 

 

800

 

 

882,192

 

5.50%, 1/01/38

 

 

750

 

 

820,283

 

 

 

 

 

 

 

5,501,140

 

Total Municipal Bonds – 117.6%

 

 

 

 

 

431,362,777

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (h)

 

Par
(000)

 

Value

 

Alabama — 0.7%

 

 

 

 

 

 

 

Alabama Special Care Facilities
Financing Authority-Birmingham,
Refunding RB, Ascension Health
Senior Credit, Series C-2, 5.00%,
11/15/36

 

$

2,519

 

$

2,649,189

 

Arizona — 0.8%

 

 

 

 

 

 

 

Salt River Project Agricultural
Improvement & Power District, RB,
Series A, 5.00%, 1/01/38

 

 

2,630

 

 

2,899,697

 

California — 8.8%

 

 

 

 

 

 

 

California Educational Facilities
Authority, RB, University of Southern
California, Series A, 5.25%, 10/01/39

 

 

2,850

 

 

3,302,894

 

Los Angeles Community College District
California, GO, Election of 2001,
Series A (AGM), 5.00%, 8/01/32

 

 

2,530

 

 

2,807,010

 

Los Angeles Department of Airports,
Refunding RB, Senior, Los Angeles
International Airport, Series A, 5.00%,
5/15/40

 

 

6,499

 

 

7,190,108

 

San Diego Community College District
California, GO, Election of 2002,
5.25%, 8/01/33

 

 

1,840

 

 

2,130,399

 

San Francisco City & County Public
Utilities Commission, RB, Series B,
5.00%, 11/01/39

 

 

10,335

 

 

11,525,385

 

University of California, RB, Limited
Project, Series B, 4.75%, 5/15/38

 

 

5,099

 

 

5,277,041

 

 

 

 

 

 

 

32,232,837

 

Colorado — 2.0%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB
(AGM), Catholic Health:

 

 

 

 

 

 

 

Series C-3, 5.10%, 10/01/41

 

 

4,230

 

 

4,468,065

 

Series C-7, 5.00%, 9/01/36

 

 

2,710

 

 

2,867,532

 

 

 

 

 

 

 

7,335,597

 

Connecticut — 3.2%

 

 

 

 

 

 

 

Connecticut State Health & Educational
Facility Authority, RB, Yale University:

 

 

 

 

 

 

 

Series T-1, 4.70%, 7/01/29

 

 

5,170

 

 

5,860,143

 

Series X-3, 4.85%, 7/01/37

 

 

5,130

 

 

5,798,696

 

 

 

 

 

 

 

11,658,839

 

Georgia — 1.4%

 

 

 

 

 

 

 

Private Colleges & Universities Authority,
Refunding RB, Emory University,
Series C, 5.00%, 9/01/38

 

 

4,638

 

 

5,085,929

 

Maryland — 1.3%

 

 

 

 

 

 

 

Maryland Health & Higher Educational
Facilities Authority, Refunding RB,
Ascension Health, Seires B, 5.00%,
11/15/51

 

 

4,559

 

 

4,967,719

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2012

5


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (h)

 

Par
(000)

 

Value

 

Massachusetts — 2.5%

 

 

 

 

 

 

 

Massachusetts School Building
Authority, RB, Sales Tax Revenue,
Senior, Series B, 5.00%, 10/15/41

 

$

4,950

 

$

5,619,190

 

Massachusetts Water Resources
Authority, Refunding RB, General,
Series A, 5.00%, 8/01/41

 

 

3,150

 

 

3,519,968

 

 

 

 

 

 

 

9,139,158

 

New Hampshire — 0.7%

 

 

 

 

 

 

 

New Hampshire Health & Education
Facilities Authority, Refunding RB,
Dartmouth College, 5.25%, 6/01/39

 

 

2,219

 

 

2,573,424

 

New York — 13.4%

 

 

 

 

 

 

 

Hudson New York Yards Infrastructure
Corp., Senior RB, Series A, 5.75%,
2/15/47

 

 

1,750

 

 

2,014,653

 

New York City Municipal Water Finance
Authority, RB, Second General
Resolution, Series HH, 5.00%,
6/15/31

 

 

9,149

 

 

10,580,191

 

New York City Municipal Water Finance
Authority, Refunding RB, Series FF-2,
5.50%, 6/15/40

 

 

1,710

 

 

1,969,583

 

New York City Transitional Finance
Authority, RB, 5.00%, 2/01/42

 

 

2,679

 

 

3,020,597

 

New York Liberty Development Corp.,
RB, Liberty Revenue Bonds, 1 World
Trade Center Port Authority
Construction, 5.25%, 12/15/43

 

 

11,670

 

 

13,273,341

 

New York Liberty Development Corp.,
Refunding RB, Liberty Revenue
Bonds, 4 World Trade Center Project,
5.75%, 11/15/51

 

 

7,040

 

 

8,097,619

 

New York State Dormitory Authority,
ERB, Series F, 5.00%, 3/15/35

 

 

9,284

 

 

10,066,831

 

 

 

 

 

 

 

49,022,815

 

Texas — 1.1%

 

 

 

 

 

 

 

Harris County Texas Metropolitan
Transit Authority, RB, Sales & Use Tax
Bonds, Series A, 5.00%, 11/01/41

 

 

3,720

 

 

4,154,756

 

Utah — 1.2%

 

 

 

 

 

 

 

City of Riverton Utah Hospital, RB, IHC
Health Services Inc., 5.00%, 8/15/41

 

 

3,959

 

 

4,273,936

 

Virginia — 1.8%

 

 

 

 

 

 

 

University of Virginia, Refunding RB,
General, 5.00%, 6/01/40

 

 

5,909

 

 

6,640,641

 

Washington — 3.5%

 

 

 

 

 

 

 

Central Puget Sound Regional Transit
Authority, RB, Series A (AGM), 5.00%,
11/01/32

 

 

3,029

 

 

3,422,017

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (h)

 

Par
(000)

 

Value

 

Washington (concluded)

 

 

 

 

 

 

 

State of Washington, GO, Various
Purpose, Series E, 5.00%, 2/01/34

 

$

8,113

 

$

9,303,523

 

 

 

 

 

 

 

12,725,540

 

Total Municipal Bonds Transferred to Tender Option
Bond (TOB) Trusts – 42.4%

 

 

 

 

 

155,360,077

 

Total Long-Term Investments
(Cost – $542,398,263) – 160.0%

 

 

 

 

 

586,722,854

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.03% (i)(j)

 

 

11,192,913

 

 

11,192,913

 

Total Short-Term Securities
(Cost – $11,192,913) – 3.1%

 

 

 

 

 

11,192,913

 

Total Investments (Cost - $553,591,176*) – 163.1%

 

 

 

 

 

597,915,767

 

Other Assets Less Liabilities – 1.3%

 

 

 

 

 

4,747,435

 

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable – (23.1)%

 

 

 

 

 

(84,676,149

)

VMTP Shares, at Liquidation Value – (41.3)%

 

 

 

 

 

(151,300,000

)

Net Assets Applicable to Common Shares– 100.0%

 

 

 

 

$

366,687,053

 

 

 

 

 

*

As of May 31, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


 

 

 

 

 

Tax cost

 

$

468,008,437

 

Gross unrealized appreciation

 

$

50,189,738

 

Gross unrealized depreciation

 

 

(4,922,480

)

Net unrealized appreciation

 

$

45,267,258

 

 

 

(a)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(b)

Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.

 

 

(c)

Non-income producing security.

 

 

(d)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity.

 

 

(e)

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

 

(f)

Variable rate security. Rate shown is as of report date.

 

 

(g)

US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.


 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2012

6


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)


 

 

(h)

Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction.

 

 

(i)

Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
Held at
August 31,
2011

 

Net
Activity

 

Shares
Held at
May 31,
2012

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFI Institutional
Tax-Exempt
Fund

 

 

11,840,465

 

 

(647,552

)

 

11,192,913

 

$

1,712

 

 

 

(j)

Represents the current yield as of report date.


 

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

 

 

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

CAB

Capital Appreciation Bonds

EDA

Economic Development Authority

EDC

Economic Development Corp.

ERB

Education Revenue Bonds

GO

General Obligation Bonds

HFA

Housing Finance Agency

NPFGC

National Public Finance Guarantee Corp.

RB

Revenue Bonds

SAN

State Aid Notes

 

 

•

Financial futures contracts sold as of May 31, 2012 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 

   105

 

10-Year US
Treasury
Note

 

Chicago
Board of
Trade

 

September
2012

 

$

14,063,438

 

$

(123,246

)

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

 

 

 

•

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

•

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

•

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the inputs used as of May 31, 2012 in determining the fair valuation of the Trust’s investments and derivative financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

—

 

$

586,722,854

 

 

—

 

$

586,722,854

 

Short-Term
Securities

 

$

11,192,913

 

 

—

 

 

—

 

 

11,192,913

 

Total

 

$

11,192,913

 

$

586,722,854

 

 

—

 

$

597,915,767

 

 

 

1

See above Schedule of Investments for values in each state or political subdivision.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Derivative Financial
Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate
contracts

 

$

(123,246

)

 

—

 

 

—

 

$

(123,246

)

 

 

2

Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.


 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2012

7


 

 

 

 

Schedule of Investments (concluded)

BlackRock Municipal Income Trust II (BLE)

Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of May 31, 2012, such assets and liabilities are categorized within the disclosure hierarchy as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash pledged
as collateral
for financial
futures
contracts

 

$

278,000

 

 

—

 

 

—

 

$

278,000

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

TOB trust
certificates

 

 

—

 

$

(84,640,072

)

 

—

 

 

(84,640,072

)

VMTP shares

 

 

—

 

 

(151,300,000

)

 

—

 

 

(151,300,000

)

Total

 

$

278,000

 

$

(235,940,072

)

 

—

 

$

(235,662,072

)

There were no transfers between levels during the period ended May 31, 2012.

 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2012

8

Item 2 –

Controls and Procedures

 

 

2(a) –

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

 

 

2(b) –

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

 

Item 3 –

Exhibits

 

 

 

Certifications – Attached hereto

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

BlackRock Municipal Income Trust II

 

 
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock Municipal Income Trust II
   
  Date: July 25, 2012
   
  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
   
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock Municipal Income Trust II
   
  Date: July 25, 2012
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Municipal Income Trust II
     
  Date: July 25, 2012