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: Anne F. Ackerley, 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: 08/31/2011

 

Date of reporting period: 11/30/2010

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments November 30, 2010 (Unaudited)

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Arizona — 4.3%

 

 

 

 

 

 

 

Maricopa County Pollution Control Corp.,
Refunding RB, Southern California
Edison Co., Series A, 5.00%, 6/01/35

 

$

1,870

 

$

1,828,654

 

Pima County IDA, Refunding IDRB,
Tucson Electric Power, 5.75%,
9/01/29

 

 

1,210

 

 

1,220,478

 

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

 

 

2,135

 

 

2,179,579

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

5,635

 

 

5,085,137

 

5.00%, 12/01/37

 

 

3,990

 

 

3,527,519

 

 

 

 

 

 

 

 

 

 

 

 

13,841,367

 

California — 20.5%

 

 

 

 

 

 

 

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

 

 

2,480

 

 

2,603,380

 

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

 

 

9,710

 

 

84,865

 

California HFA, RB, AMT, Home
Mortgage:

 

 

 

 

 

 

 

Series G, 5.50%, 8/01/42

 

 

8,105

 

 

7,958,543

 

Series K, 5.50%, 2/01/42

 

 

2,860

 

 

2,907,876

 

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

 

 

1,280

 

 

1,349,286

 

California Statewide Communities
Development Authority, RB, Health
Facility, Memorial Health Services,
Series A, 5.50%, 10/01/33

 

 

5,000

 

 

5,076,450

 

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

 

 

860

 

 

868,161

 

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

 

 

6,500

 

 

6,381,830

 

Los Angeles Unified School District
California, GO:

 

 

 

 

 

 

 

Series D, 5.00%, 7/01/27

 

 

2,375

 

 

2,446,773

 

Series I, 5.00%, 7/01/26

 

 

1,250

 

 

1,297,663

 

Series I, 5.00%, 7/01/27

 

 

1,750

 

 

1,802,885

 

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

 

 

10,340

 

 

10,525,810

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

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

 

$

3,120

 

$

3,129,110

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

6.00%, 3/01/33

 

 

2,760

 

 

2,945,362

 

6.50%, 4/01/33

 

 

10,670

 

 

11,772,211

 

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

 

 

5,095

 

 

4,898,435

 

 

 

 

 

 

 

 

 

 

 

 

66,048,640

 

Colorado — 2.3%

 

 

 

 

 

 

 

City of Colorado Springs Colorado, RB,
Subordinate Lien, Improvement,
Series C (AGM), 5.00%, 11/15/45

 

 

1,375

 

 

1,385,161

 

Colorado Health Facilities Authority,
Refunding RB, Series A:

 

 

 

 

 

 

 

Catholic Healthcare, 5.50%,
7/01/34

 

 

2,330

 

 

2,418,657

 

Sisters of Leavenworth, 5.00%,
1/01/40

 

 

2,400

 

 

2,338,848

 

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

 

 

1,375

 

 

1,254,619

 

 

 

 

 

 

 

 

 

 

 

 

7,397,285

 

Connecticut — 0.5%

 

 

 

 

 

 

 

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

 

 

1,505

 

 

1,520,125

 

Delaware — 1.3%

 

 

 

 

 

 

 

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

 

 

4,430

 

 

4,087,428

 

District of Columbia — 6.7%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

6.50%, 5/15/33

 

 

7,500

 

 

7,597,350

 

6.75%, 5/15/40

 

 

11,500

 

 

11,522,080

 

District of Columbia, Refunding RB,
Friendship Public Charter School Inc.
(ACA), 5.25%, 6/01/33

 

 

1,265

 

 

1,054,643

 

 

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:

 

 

ACA

ACA Financial Guaranty Corp.

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

HDA

Housing Development Authority

HFA

Housing Finance Agency

IDA

Industrial Development Authority

IDRB

Industrial Development Revenue Bonds

NPFGC

National Public Finance Guarantee Corp.

RB

Revenue Bonds

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

NOVEMBER 30, 2010

1


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

District of Columbia (concluded)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.00%, 10/01/39

 

$

550

 

$

553,085

 

5.25%, 10/01/44

 

 

865

 

 

882,707

 

 

 

 

 

 

 

 

 

 

 

 

21,609,865

 

Florida — 6.0%

 

 

 

 

 

 

 

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

 

 

1,470

 

 

1,364,851

 

County of Miami-Dade Florida, RB,
Miami International Airport, Series A,
AMT (AGC), 5.25%, 10/01/38

 

 

2,855

 

 

2,767,494

 

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

 

 

1,255

 

 

1,263,195

 

County of Orange Florida, Refunding RB
(Syncora), 4.75%, 10/01/32

 

 

905

 

 

856,673

 

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

 

 

3,115

 

 

3,146,181

 

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

 

 

3,900

 

 

4,002,960

 

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

 

 

1,960

 

 

1,562,140

 

Sumter County IDA Florida, RB, North
Sumter Utility Co., LLC Project, AMT,
6.90%, 10/01/34

 

 

4,270

 

 

4,270,726

 

 

 

 

 

 

 

 

 

 

 

 

19,234,220

 

Georgia — 0.3%

 

 

 

 

 

 

 

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

 

 

915

 

 

929,356

 

Guam — 0.8%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

695

 

 

724,787

 

6.75%, 11/15/29

 

 

995

 

 

1,075,436

 

7.00%, 11/15/39

 

 

680

 

 

743,519

 

 

 

 

 

 

 

 

 

 

 

 

2,543,742

 

Hawaii — 0.4%

 

 

 

 

 

 

 

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

 

 

1,480

 

 

1,462,092

 

Illinois — 8.5%

 

 

 

 

 

 

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

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

 

 

900

 

 

241,803

 

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

 

 

1,675

 

 

1,687,077

 

Illinois Finance Authority, Refunding RB:

 

 

 

 

 

 

 

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

 

 

1,750

 

 

1,753,588

 

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

 

 

455

 

 

369,642

 

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

 

 

15,000

 

 

15,520,050

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

CAB, Series B, 6.23%, 6/15/43 (a)

 

$

10,340

 

$

1,257,654

 

Series B, 5.00%, 6/15/50

 

 

3,430

 

 

3,276,645

 

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

 

 

2,725

 

 

2,577,305

 

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

 

 

685

 

 

692,973

 

 

 

 

 

 

 

 

 

 

 

 

27,376,737

 

Indiana — 2.9%

 

 

 

 

 

 

 

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

 

 

915

 

 

918,193

 

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

 

 

1,500

 

 

1,465,845

 

Indiana Health Facility Financing
Authority, Refunding RB:

 

 

 

 

 

 

 

Ascension Health, Series F, 5.38%,
11/15/25

 

 

2,095

 

 

2,154,896

 

Methodist Hospital Inc., 5.38%,
9/15/22

 

 

3,675

 

 

3,409,151

 

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

 

 

1,200

 

 

1,278,132

 

 

 

 

 

 

 

 

 

 

 

 

9,226,217

 

Kansas — 0.6%

 

 

 

 

 

 

 

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

 

 

1,820

 

 

1,819,927

 

Kentucky — 0.3%

 

 

 

 

 

 

 

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

 

 

1,105

 

 

1,125,873

 

Louisiana — 1.2%

 

 

 

 

 

 

 

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

 

 

3,650

 

 

3,716,211

 

Maryland — 0.8%

 

 

 

 

 

 

 

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

 

 

475

 

 

477,413

 

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

 

 

1,000

 

 

982,360

 

Maryland Health & Higher Educational
Facilities Authority, RB, Union Hospital
of Cecil County Issue, 5.63%,
7/01/32

 

 

1,000

 

 

1,006,190

 

 

 

 

 

 

 

 

 

 

 

 

2,465,963

 

Massachusetts — 0.6%

 

 

 

 

 

 

 

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

 

 

1,955

 

 

1,911,286

 

 

 

 

2

BLACKROCK MUNICIPAL INCOME TRUST II

NOVEMBER 30, 2010


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan — 1.1%

 

 

 

 

 

 

 

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

 

$

1,500

 

$

1,483,755

 

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

 

 

2,305

 

 

2,050,574

 

 

 

 

 

 

 

 

 

 

 

 

3,534,329

 

Missouri — 2.1%

 

 

 

 

 

 

 

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

 

 

6,000

 

 

5,631,720

 

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

 

 

1,135

 

 

1,065,913

 

 

 

 

 

 

 

 

 

 

 

 

6,697,633

 

Multi-State — 4.1%

 

 

 

 

 

 

 

Centerline Equity Issuer Trust (e)(f):

 

 

 

 

 

 

 

5.75%, 5/15/15

 

 

1,000

 

 

1,061,840

 

6.00%, 5/15/15

 

 

5,000

 

 

5,292,000

 

6.00%, 5/15/19

 

 

3,500

 

 

3,721,795

 

6.30%, 5/15/19

 

 

3,000

 

 

3,202,560

 

 

 

 

 

 

 

 

 

 

 

 

13,278,195

 

Nebraska — 0.9%

 

 

 

 

 

 

 

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

 

 

1,245

 

 

1,244,041

 

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

 

 

1,635

 

 

1,613,026

 

 

 

 

 

 

 

 

 

 

 

 

2,857,067

 

Nevada — 0.7%

 

 

 

 

 

 

 

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

 

 

2,465

 

 

2,415,478

 

New Jersey — 9.8%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.75%, 6/15/34

 

 

3,810

 

 

3,572,218

 

Continental Airlines Inc. Project,
AMT, 7.20%, 11/15/30 (g)

 

 

10,100

 

 

10,129,896

 

Kapkowski Road Landfill Project,
Series 1998B, AMT, 6.50%,
4/01/31

 

 

10,000

 

 

10,001,100

 

New Jersey EDA, Special Assessment
Bonds, Refunding, Kapkowski Road
Landfill Project, 6.50%, 4/01/28

 

 

7,475

 

 

7,829,091

 

 

 

 

 

 

 

 

 

 

 

 

31,532,305

 

New Mexico — 1.8%

 

 

 

 

 

 

 

New Mexico Income Housing Authority,
RB, Villa Del Oso Apartments Project,
Series A, 6.00%, 1/01/13 (h)

 

 

5,200

 

 

5,867,524

 

New York — 3.8%

 

 

 

 

 

 

 

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

 

 

985

 

 

392,670

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

New York (concluded)

 

 

 

 

 

 

 

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

 

$

1,325

 

$

1,313,115

 

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

 

 

6,700

 

 

7,024,146

 

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

 

 

1,391,177

 

Port Authority of New York & New
Jersey, RB, Continental Airlines Inc.
and Eastern Air Lines Inc. Project,
LaGuardia, AMT, 9.00%, 12/01/10

 

 

2,075

 

 

2,075,104

 

 

 

 

 

 

 

 

 

 

 

 

12,196,212

 

North Carolina — 3.3%

 

 

 

 

 

 

 

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

 

 

7,500

 

 

5,871,075

 

North Carolina Capital Facilities Finance
Agency, RB, Duke Energy Carolinas,
Series B, 4.38%, 10/01/31

 

 

1,760

 

 

1,632,505

 

North Carolina Capital Facilities Finance
Agency, Refunding RB, Duke Energy
Carolinas, Series B, 4.63%, 11/01/40

 

 

1,760

 

 

1,610,946

 

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

 

 

1,525

 

 

1,517,802

 

 

 

 

 

 

 

 

 

 

 

 

10,632,328

 

Ohio — 2.0%

 

 

 

 

 

 

 

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

 

 

3,405

 

 

3,432,887

 

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

 

 

3,025

 

 

3,053,858

 

 

 

 

 

 

 

 

 

 

 

 

6,486,745

 

Oklahoma — 1.3%

 

 

 

 

 

 

 

Tulsa Airports Improvement Trust, RB,
Series A, Mandatory Put Bonds, AMT,
7.75%, 6/01/35 (g)

 

 

3,925

 

 

4,042,711

 

Pennsylvania — 5.2%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

1,406,260

 

Pennsylvania Economic Development
Financing Authority, RB:

 

 

 

 

 

 

 

Amtrak Project, Series A, AMT,
6.38%, 11/01/41

 

 

5,175

 

 

5,210,500

 

Aqua Pennsylvania Inc. Project,
5.00%, 11/15/40

 

 

2,065

 

 

2,066,425

 

Reliant Energy, Series A, AMT,
6.75%, 12/01/36

 

 

6,130

 

 

6,334,129

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

NOVEMBER 30, 2010

3


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Pennsylvania (concluded)

 

 

 

 

 

 

 

Pennsylvania Turnpike Commission, RB,
Sub-Series D, 5.13%, 12/01/40

 

$

1,700

 

$

1,688,406

 

 

 

 

 

 

 

 

 

 

 

 

16,705,720

 

Puerto Rico — 7.8%

 

 

 

 

 

 

 

Commonwealth of Puerto Rico, GO,
Refunding, Public Improvement,
Series C, 6.00%, 7/01/39

 

 

3,220

 

 

3,353,405

 

Puerto Rico Sales Tax Financing Corp.,
RB:

 

 

 

 

 

 

 

CAB, Series A, 6.48%, 8/01/31 (a)

 

 

11,700

 

 

3,226,743

 

CAB, Series A, 6.55%, 8/01/32 (a)

 

 

8,600

 

 

2,214,500

 

CAB, Series A, 6.57%, 8/01/33 (a)

 

 

13,600

 

 

3,260,736

 

CAB, Series A, 6.60%, 8/01/34 (a)

 

 

5,500

 

 

1,221,275

 

CAB, Series A, 6.61%, 8/01/35 (a)

 

 

14,055

 

 

2,914,585

 

CAB, Series A, 6.63%, 8/01/36 (a)

 

 

11,875

 

 

2,304,700

 

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

 

 

6,100

 

 

6,777,588

 

 

 

 

 

 

 

 

 

 

 

 

25,273,532

 

South Carolina — 3.9%

 

 

 

 

 

 

 

County of Greenwood South Carolina,
RB, Facilities, Self Memorial Hospital:

 

 

 

 

 

 

 

5.50%, 10/01/26

 

 

2,280

 

 

2,286,521

 

5.50%, 10/01/31

 

 

3,250

 

 

3,254,452

 

South Carolina Jobs-EDA, Refunding RB:

 

 

 

 

 

 

 

Palmetto Health Alliance, Series A,
6.25%, 8/01/31

 

 

2,640

 

 

2,688,286

 

Palmetto Health, Series C, 6.88%,
8/01/13 (h)

 

 

550

 

 

635,558

 

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

 

 

3,595

 

 

3,608,265

 

 

 

 

 

 

 

 

 

 

 

 

12,473,082

 

Tennessee — 4.0%

 

 

 

 

 

 

 

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

 

 

20,405

 

 

11,889,178

 

Rutherford County Health & Educational
Facilities Board, RB, Ascension Health
Senior Credit Group, 5.00%,
11/15/40

 

 

1,120

 

 

1,137,763

 

 

 

 

 

 

 

 

 

 

 

 

13,026,941

 

Texas — 17.5%

 

 

 

 

 

 

 

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

 

 

2,400

 

 

888,024

 

Brazos River Authority, Refunding RB,
TXU Electric Co. Project, Series C,
Mandatory Put Bonds, AMT, 5.75%,
5/01/36 (g)

 

 

1,350

 

 

1,265,625

 

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

 

 

1,650

 

 

1,702,965

 

City of Houston Texas, RB, Senior Lien,
Series A, 5.50%, 7/01/39

 

 

1,675

 

 

1,749,822

 

City of Houston Texas, Refunding RB,
Combined, First Lien, Series A (AGC),
6.00%, 11/15/35

 

 

9,145

 

 

10,209,935

 

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

 

 

10,000

 

 

10,065,000

 

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

 

 

25,375

 

 

3,287,331

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Texas (concluded)

 

 

 

 

 

 

 

Lower Colorado River Authority,
Refunding RB (NPFGC):

 

 

 

 

 

 

 

5.00%, 5/15/13 (h)

 

$

35

 

$

38,464

 

5.00%, 5/15/13 (h)

 

 

30

 

 

33,015

 

5.00%, 5/15/31

 

 

1,235

 

 

1,238,656

 

Series A, 5.00%, 5/15/13 (h)

 

 

5

 

 

5,503

 

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

 

 

6,790

 

 

6,972,651

 

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

 

 

3,600

 

 

3,820,500

 

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

 

 

4,410

 

 

4,583,798

 

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

 

 

 

 

 

 

 

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

 

 

4,710

 

 

4,863,122

 

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

 

 

4,200

 

 

4,312,266

 

Texas State Turnpike Authority, RB, First
Tier, Series A (AMBAC), 5.00%,
8/15/42

 

 

1,390

 

 

1,292,033

 

 

 

 

 

 

 

 

 

 

 

 

56,328,710

 

Utah — 1.2%

 

 

 

 

 

 

 

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

 

 

3,960

 

 

3,973,583

 

Virginia — 3.0%

 

 

 

 

 

 

 

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

 

 

1,460

 

 

1,404,827

 

Halifax County IDA, Refunding RB, Old
Dominion Electric Co-op Project, AMT
(AMBAC), 5.63%, 6/01/28

 

 

5,000

 

 

5,147,750

 

Virginia HDA, RB, Sub-Series H-1
(NPFGC), 5.35%, 7/01/31

 

 

3,180

 

 

3,193,419

 

 

 

 

 

 

 

 

 

 

 

 

9,745,996

 

Wisconsin — 2.1%

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,790

 

 

1,818,389

 

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

 

 

910

 

 

914,614

 

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

 

 

3,930

 

 

3,998,697

 

 

 

 

 

 

 

 

 

 

 

 

6,731,700

 

Wyoming — 1.6%

 

 

 

 

 

 

 

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

 

 

3,355

 

 

3,519,865

 

Wyoming Municipal Power Agency, RB,
Series A:

 

 

 

 

 

 

 

5.50%, 1/01/33

 

 

800

 

 

830,344

 

 

 

 

4

BLACKROCK MUNICIPAL INCOME TRUST II

NOVEMBER 30, 2010


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Wyoming (concluded)

 

 

 

 

 

 

 

Wyoming Municipal Power Agency, RB,

 

 

 

 

 

 

 

Series A: (concluded)
5.50%, 1/01/38

 

$

750

 

$

772,110

 

 

 

 

 

 

 

 

 

 

 

 

5,122,319

 

Total Municipal Bonds – 135.2%

 

 

 

 

 

435,238,444

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (i)

 

 

 

 

 

 

 

Alabama — 0.8%

 

 

 

 

 

 

 

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

 

 

2,519

 

 

2,525,356

 

California — 2.3%

 

 

 

 

 

 

 

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

 

 

2,850

 

 

2,959,155

 

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

 

 

2,530

 

 

2,546,926

 

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

 

 

1,840

 

 

1,922,836

 

 

 

 

 

 

 

 

 

 

 

 

7,428,917

 

Colorado — 2.1%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

 

4,230

 

 

4,197,175

 

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

 

 

2,710

 

 

2,682,683

 

 

 

 

 

 

 

 

 

 

 

 

6,879,858

 

Connecticut — 3.3%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

 

5,170

 

 

5,403,736

 

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

 

 

5,130

 

 

5,278,309

 

 

 

 

 

 

 

 

 

 

 

 

10,682,045

 

Georgia — 1.5%

 

 

 

 

 

 

 

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

 

 

4,638

 

 

4,751,942

 

Massachusetts — 1.0%

 

 

 

 

 

 

 

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

 

 

3,150

 

 

3,210,480

 

New Hampshire — 0.7%

 

 

 

 

 

 

 

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

 

 

2,219

 

 

2,337,061

 

New York — 4.4%

 

 

 

 

 

 

 

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

 

 

1,710

 

 

1,832,150

 

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

 

 

9,284

 

 

9,415,878

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (i)

 

Par
(000)

 

Value

 

New York (concluded)

 

 

 

 

 

 

 

New York State Environmental Facilities
Corp., RB, Revolving Funds, New York
City Municipal Water Project, Series B,
5.00%, 6/15/31

 

$

2,850

 

$

2,883,203

 

 

 

 

 

 

 

 

 

 

 

 

14,131,231

 

Virginia — 1.9%

 

 

 

 

 

 

 

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

 

 

5,910

 

 

6,169,035

 

Washington — 3.6%

 

 

 

 

 

 

 

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

 

 

3,029

 

 

3,122,138

 

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

 

 

8,113

 

 

8,393,345

 

 

 

 

 

 

 

 

 

 

 

 

11,515,483

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts – 21.6%

 

 

 

 

 

69,631,408

 

Total Long-Term Investments
(Cost – $502,966,242) – 156.8%

 

 

 

 

 

504,869,852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

FFI Institutional Tax-Exempt Fund,
0.15% (j)(k)

 

 

11,435,230

 

 

11,435,230

 

Total Short-Term Securities
(Cost – $11,435,230) – 3.6%

 

 

 

 

 

11,435,230

 

Total Investments
(Cost – $514,401,472*) – 160.4%

 

 

 

 

 

516,305,082

 

Liabilities in Excess of Other Assets – (1.2)%

 

 

 

 

 

(3,789,105

)

Liability for Trust Certificates, Including Interest
Expense and Fees Payable – (12.2)%

 

 

 

 

 

(39,285,462

)

Preferred Shares, at Redemption Value – (47.0)%

 

 

 

 

 

(151,308,245

)

 

 

 

 

 

Net Assets Applicable to Common Shares– 100.0%

 

 

 

 

$

321,922,270

 

 

 

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of November 30, 2010, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

Aggregate cost

 

$

474,613,212

 

 

 

Gross unrealized appreciation

 

$

14,826,629

 

Gross unrealized depreciation

 

 

(12,387,196

)

 

 

Net unrealized appreciation

 

$

2,439,433

 

 

 

 

 

(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 interest payments.

 

 

(c)

Non-income producing security.

 

 

(d)

When-issued security. Unsettled when-issued transactions were as follows:

 

 

 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Appreciation

 

 

JPMorgan Securities

 

$

3,716,211

 

$

66,211

 

 

Citigroup Global Markets

 

$

1,313,115

 

$

15,582

 

 

Goldman Sachs & Co.

 

$

3,608,265

 

$

169,253

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

NOVEMBER 30, 2010

5


 

 

 

 

Schedule of Investments (concluded)

BlackRock Municipal Income Trust II (BLE)

 

 

(e)

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

 

 

(f)

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.

 

 

(g)

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

 

 

(h)

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.

 

 

(i)

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

 

 

(j)

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,
2010

 

Net
Activity

 

Shares
Held at
November 30,
2010

 

Income

 

FFI Institutional
Tax-Exempt
Fund

 

 

9,440,330

 

 

1,994,900

 

 

11,435,230

 

$

2,170

 

 

 

 

(k)

Represents the current yield as of report date.

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

•

Level 1 — 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)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its annual report.

The following table summarizes the inputs used as of November 30, 2010 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

—

 

$

504,869,852

 

 

—

 

$

504,869,852

 

Short-Term
Securities

 

$

11,435,230

 

 

—

 

 

—

 

 

11,435,230

 

Total

 

$

11,435,230

 

$

504,869,852

 

 

—

 

$

516,305,082

 

 

 

 

 

 

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

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

NOVEMBER 30, 2010

6

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/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer (principal executive officer) of
    BlackRock Municipal Income Trust II
   
  Date: January 26, 2011
   
  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/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer (principal executive officer) of
    BlackRock Municipal Income Trust II
   
  Date: January 26, 2011
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Municipal Income Trust II
     
  Date: January 26, 2011