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: 11/30/2011

 

Item 1 – Schedule of Investments

 

 

 

 

Schedule of Investments November 30, 2011 (Unaudited)

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Arizona — 3.5%

 

 

 

 

 

 

 

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

 

$

2,635

 

$

2,751,388

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

5,635

 

 

5,253,398

 

5.00%, 12/01/37

 

 

3,990

 

 

3,664,176

 

 

 

 

 

 

 

11,668,962

 

Arkansas — 0.6%

 

 

 

 

 

 

 

County of Little River Arkansas,
Refunding RB, Georgia-Pacific Corp.,
Project, AMT, 5.60%, 10/01/26

 

 

1,825

 

 

1,821,204

 

California — 14.8%

 

 

 

 

 

 

 

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

 

 

2,480

 

 

2,681,475

 

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

 

 

9,710

 

 

98,751

 

California Health Facilities Financing
Authority, Refunding RB, Sutter
Health, Series B, 6.00%, 8/15/42

 

 

3,500

 

 

3,780,280

 

California State Housing Facilities
Finance Authority, Series K Home
Mortgage, 5.50%, 2/01/42

 

 

2,220

 

 

2,209,810

 

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

 

 

1,280

 

 

1,390,822

 

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

 

 

5,000

 

 

5,036,700

 

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

 

 

860

 

 

913,896

 

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

 

 

6,500

 

 

6,805,565

 

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

 

 

3,120

 

 

3,133,884

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

6.00%, 3/01/33

 

$

1,760

 

$

1,972,379

 

6.50%, 4/01/33

 

 

10,670

 

 

12,431,831

 

5.00%, 10/01/41

 

 

3,320

 

 

3,299,383

 

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

 

 

5,095

 

 

5,111,304

 

 

 

 

 

 

 

48,866,080

 

Colorado — 1.1%

 

 

 

 

 

 

 

Colorado Health Facilities Authority,
Refunding RB, Catholic Healthcare,
Series A, 5.50%, 7/01/34

 

 

2,330

 

 

2,443,145

 

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

 

 

1,375

 

 

1,305,824

 

 

 

 

 

 

 

3,748,969

 

Connecticut — 0.5%

 

 

 

 

 

 

 

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

 

 

1,505

 

 

1,548,750

 

Delaware — 1.6%

 

 

 

 

 

 

 

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

 

 

1,240

 

 

1,246,398

 

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

 

 

4,430

 

 

4,056,773

 

 

 

 

 

 

 

5,303,171

 

District of Columbia — 6.5%

 

 

 

 

 

 

 

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

 

 

1,265

 

 

1,052,581

 

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

 

 

 

 

 

 

 

6.50%, 5/15/33

 

 

7,500

 

 

7,801,050

 

6.75%, 5/15/40

 

 

11,500

 

 

11,313,930

 

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

 

 

 

 

 

 

 

5.00%, 10/01/39

 

 

550

 

 

567,226

 

 

 

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

American Capital Access 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

IDA

Industrial Development Authority

NPFGC

National Public Finance Guarantee Corp.

RB

Revenue Bonds

SAN

State Aid Notes

 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

NOVEMBER 30, 2011

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 (concluded):

 

 

 

 

 

 

 

5.25%, 10/01/44

 

$

865

 

$

895,258

 

 

 

 

 

 

 

21,630,045

 

Florida — 5.0%

 

 

 

 

 

 

 

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

 

 

1,240

 

 

1,201,349

 

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

 

 

2,855

 

 

2,838,527

 

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

 

 

1,255

 

 

1,284,593

 

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

 

 

3,115

 

 

3,189,230

 

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

 

 

3,640

 

 

3,816,322

 

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

 

 

2,500

 

 

2,604,875

 

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

 

 

1,930

 

 

1,571,020

 

 

 

 

 

 

 

16,505,916

 

Georgia — 0.3%

 

 

 

 

 

 

 

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

 

 

915

 

 

941,343

 

Guam — 0.7%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

695

 

 

710,394

 

6.75%, 11/15/29

 

 

995

 

 

1,023,587

 

7.00%, 11/15/39

 

 

680

 

 

700,842

 

 

 

 

 

 

 

2,434,823

 

Hawaii — 0.5%

 

 

 

 

 

 

 

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

 

 

1,480

 

 

1,556,116

 

Illinois — 12.9%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO,
Series A:

 

 

 

 

 

 

 

5.50%, 12/01/39

 

 

2,300

 

 

2,424,844

 

5.00%, 12/01/41

 

 

760

 

 

760,000

 

City of Chicago Illinois, RB, O’Hare
International Airport, General, Third
Lien, Series A, 5.75%, 1/01/39

 

 

5,000

 

 

5,426,750

 

City of Chicago Illinois, Refunding RB,
O’Hare International Airport, General,
Third Lien, Series C, 6.50%, 1/01/41

 

 

6,430

 

 

7,359,456

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

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

 

$

1,150

 

$

1,190,733

 

City of Chicago Illinois, Sales Tax
Revenue, Refunding RB, Series A,
5.25%, 1/01/38

 

 

895

 

 

947,420

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

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

 

 

900

 

 

179,928

 

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

 

 

1,675

 

 

1,725,217

 

Illinois Finance Authority, Refunding RB,
Central Dupage Health, Series
B, 5.50%, 11/01/39

 

 

1,750

 

 

1,813,508

 

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

 

 

455

 

 

371,021

 

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

 

 

10,500

 

 

10,971,765

 

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

 

 

 

 

 

 

 

Series B, 5.00%, 6/15/50

 

 

3,430

 

 

3,294,206

 

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

 

 

2,725

 

 

2,612,784

 

Railsplitter Tobacco Settlement
Authority, RB:

 

 

 

 

 

 

 

5.50%, 6/01/23

 

 

1,470

 

 

1,567,417

 

6.00%, 6/01/28

 

 

1,255

 

 

1,320,875

 

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

 

 

685

 

 

716,640

 

 

 

 

 

 

 

42,682,564

 

Indiana — 2.7%

 

 

 

 

 

 

 

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

 

 

915

 

 

933,364

 

Indiana Finance Authority, Refunding
RB:

 

 

 

 

 

 

 

Ascension Health Senior
Credit, Series B-5, 5.00%,
11/15/36

 

 

1,500

 

 

1,524,975

 

First Lien, CWA Authority,
Series A, 5.25%, 10/01/38

 

 

1,720

 

 

1,825,729

 

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

 

 

3,675

 

 

3,437,264

 

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

 

 

1,200

 

 

1,304,340

 

 

 

 

 

 

 

9,025,672

 

Iowa — 0.6%

 

 

 

 

 

 

 

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

 

 

2,140

 

 

2,140,000

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

NOVEMBER 30, 2011

2


 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Kansas — 0.5%

 

 

 

 

 

 

 

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

 

$

1,755

 

$

1,775,867

 

Kentucky — 0.4%

 

 

 

 

 

 

 

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

 

 

1,105

 

 

1,156,228

 

Louisiana — 1.2%

 

 

 

 

 

 

 

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

 

 

3,650

 

 

3,800,745

 

Maryland — 1.5%

 

 

 

 

 

 

 

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

 

 

475

 

 

475,632

 

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

 

 

1,000

 

 

1,018,270

 

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

 

 

1,000

 

 

1,002,710

 

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

 

 

2,400

 

 

2,499,360

 

 

 

 

 

 

 

4,995,972

 

Massachusetts — 1.0%

 

 

 

 

 

 

 

Massachusetts Bay Transportation
Authority, Refunding RB, Senior Series
A, 5.25%, 7/01/29

 

 

2,000

 

 

2,389,440

 

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

 

 

955

 

 

974,902

 

 

 

 

 

 

 

3,364,342

 

Michigan — 1.1%

 

 

 

 

 

 

 

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

 

 

1,500

 

 

1,520,190

 

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

 

 

2,305

 

 

2,243,088

 

 

 

 

 

 

 

3,763,278

 

Minnesota — 2.2%

 

 

 

 

 

 

 

Tobacco Securitization Authority
Minnesota Refunding, RB, Series B,
5.25%, 3/01/25

 

 

4,905

 

 

5,138,380

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Minnesota (concluded)

 

 

 

 

 

 

 

Tobacco Securitization Authority,
Minnesota, Refunding RB, Tobacco
Settlement, Series B, 5.25%, 3/01/31

 

$

2,065

 

$

2,086,042

 

 

 

 

 

 

 

7,224,422

 

Missouri — 2.1%

 

 

 

 

 

 

 

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

 

 

6,000

 

 

5,845,140

 

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

 

 

1,135

 

 

1,060,692

 

 

 

 

 

 

 

6,905,832

 

Multi-State — 4.1%

 

 

 

 

 

 

 

Centerline Equity Issuer Trust (d)(e):

 

 

 

 

 

 

 

5.75%, 5/15/15

 

 

1,000

 

 

1,069,550

 

6.00%, 5/15/15

 

 

5,000

 

 

5,400,300

 

6.00%, 5/15/19

 

 

3,500

 

 

3,865,295

 

6.30%, 5/15/19

 

 

3,000

 

 

3,323,670

 

 

 

 

 

 

 

13,658,815

 

Nebraska — 0.9%

 

 

 

 

 

 

 

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

 

 

1,245

 

 

1,265,543

 

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

 

 

1,635

 

 

1,661,977

 

 

 

 

 

 

 

2,927,520

 

Nevada — 0.8%

 

 

 

 

 

 

 

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

 

 

2,465

 

 

2,507,275

 

New Jersey — 10.8%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.75%,
6/15/34

 

 

3,810

 

 

3,665,715

 

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

 

 

10,100

 

 

10,104,040

 

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

 

 

10,000

 

 

9,919,600

 

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

 

 

7,475

 

 

7,757,929

 

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

 

 

2,690

 

 

2,781,729

 

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

 

 

1,375

 

 

1,436,999

 

 

 

 

 

 

 

35,666,012

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

NOVEMBER 30, 2011

3


 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

New York — 3.1%

 

 

 

 

 

 

 

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

 

$

985

 

$

246,250

 

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

 

 

1,325

 

 

1,374,807

 

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

 

 

6,700

 

 

5,761,866

 

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

 

 

1,385,810

 

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

 

 

1,410

 

 

1,471,025

 

 

 

 

 

 

 

10,239,758

 

North Carolina — 2.2%

 

 

 

 

 

 

 

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

 

 

5,813,700

 

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

 

 

1,525

 

 

1,552,679

 

 

 

 

 

 

 

7,366,379

 

Ohio — 2.0%

 

 

 

 

 

 

 

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

 

 

3,405

 

 

3,463,362

 

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

 

 

3,025

 

 

3,045,388

 

 

 

 

 

 

 

6,508,750

 

Oklahoma — 0.8%

 

 

 

 

 

 

 

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

 

 

3,925

 

 

2,737,687

 

Pennsylvania — 2.7%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

1,676,380

 

Pennsylvania Economic Development
Financing Authority, RB:

 

 

 

 

 

 

 

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

 

 

5,175

 

 

5,211,846

 

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

 

 

2,065

 

 

2,158,668

 

 

 

 

 

 

 

9,046,894

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Puerto Rico — 5.3%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
RB:

 

 

 

 

 

 

 

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

 

$

13,600

 

$

3,591,488

 

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

 

 

5,500

 

 

1,350,965

 

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

 

 

14,055

 

 

3,215,362

 

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

 

 

11,875

 

 

2,540,300

 

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

 

 

6,100

 

 

6,891,902

 

 

 

 

 

 

 

17,590,017

 

South Carolina — 4.2%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.50%, 10/01/26

 

 

2,280

 

 

2,281,277

 

5.50%, 10/01/31

 

 

3,250

 

 

3,251,202

 

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

 

 

2,640

 

 

2,676,802

 

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

 

 

3,595

 

 

3,772,054

 

South Carolina State Public Service
Authority, Refunding RB, Santee
Cooper Project, Series C, 5.00%,
12/01/36

 

 

1,685

 

 

1,795,586

 

 

 

 

 

 

 

13,776,921

 

Tennessee — 3.8%

 

 

 

 

 

 

 

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

 

 

20,405

 

 

12,391,956

 

Texas — 14.9%

 

 

 

 

 

 

 

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

 

 

2,400

 

 

623,184

 

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

 

 

2,350

 

 

2,393,827

 

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

 

 

1,650

 

 

1,776,802

 

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

 

 

1,675

 

 

1,771,447

 

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

 

 

9,145

 

 

10,364,669

 

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

 

 

5,000

 

 

5,124,200

 

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

 

 

25,375

 

 

4,029,804

 

Lower Colorado River Authority,
Refunding RB (NPFGC) (g):

 

 

 

 

 

 

 

5.00%, 5/15/13

 

 

35

 

 

37,347

 

Series A, 5.00%, 5/15/13

 

 

5

 

 

5,335

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

NOVEMBER 30, 2011

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)

 

 

 

 

 

 

 

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

 

$

6,790

 

$

7,130,179

 

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

 

 

3,600

 

 

3,616,020

 

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

 

 

4,410

 

 

4,727,520

 

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

 

 

 

 

 

 

 

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

 

 

4,210

 

 

4,553,452

 

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

 

 

3,000

 

 

3,205,560

 

 

 

 

 

 

 

49,359,346

 

Utah — 1.2%

 

 

 

 

 

 

 

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

 

 

3,960

 

 

4,017,895

 

Virginia — 1.9%

 

 

 

 

 

 

 

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

 

 

1,240

 

 

1,240,112

 

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

 

 

5,000

 

 

5,106,800

 

 

 

 

 

 

 

6,346,912

 

Washington — 2.4%

 

 

 

 

 

 

 

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

 

 

5,050

 

 

5,380,472

 

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

 

 

2,190

 

 

2,416,906

 

 

 

 

 

 

 

7,797,378

 

Wisconsin — 2.1%

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,790

 

 

1,867,525

 

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

 

 

910

 

 

941,368

 

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

 

 

3,930

 

 

4,007,185

 

 

 

 

 

 

 

6,816,078

 

Wyoming — 1.6%

 

 

 

 

 

 

 

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

 

 

3,355

 

 

3,640,410

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Wyoming (concluded)

 

 

 

 

 

 

 

Wyoming Municipal Power Agency, RB,
Series A:

 

 

 

 

 

 

 

5.50%, 1/01/33

 

$

800

 

$

846,944

 

5.50%, 1/01/38

 

 

750

 

 

788,287

 

 

 

 

 

 

 

5,275,641

 

Total Municipal Bonds – 126.1%

 

 

 

 

 

416,891,535

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

 

2,554,236

 

California — 5.6%

 

 

 

 

 

 

 

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

 

 

2,850

 

 

3,059,332

 

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

 

 

2,530

 

 

2,637,500

 

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

 

 

1,840

 

 

1,992,633

 

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

 

 

10,335

 

 

10,837,074

 

 

 

 

 

 

 

18,526,539

 

Colorado — 2.1%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

 

4,230

 

 

4,266,632

 

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

 

 

2,710

 

 

2,733,577

 

 

 

 

 

 

 

7,000,209

 

Connecticut — 3.3%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

 

5,170

 

 

5,514,064

 

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

 

 

5,130

 

 

5,380,241

 

 

 

 

 

 

 

10,894,305

 

Georgia — 1.5%

 

 

 

 

 

 

 

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

 

 

4,638

 

 

4,876,712

 

Massachusetts — 2.6%

 

 

 

 

 

 

 

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

 

 

4,950

 

 

5,242,545

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

NOVEMBER 30, 2011

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 (concluded)

 

 

 

 

 

 

 

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

 

$

3,150

 

$

3,255,651

 

 

 

 

 

 

 

8,498,196

 

New Hampshire — 0.7%

 

 

 

 

 

 

 

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

 

 

2,219

 

 

2,441,001

 

New York — 9.2%

 

 

 

 

 

 

 

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

 

 

1,750

 

 

1,850,906

 

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

 

 

1,710

 

 

1,875,071

 

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

 

 

9,149

 

 

9,868,503

 

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

 

 

9,284

 

 

9,575,438

 

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

 

 

7,040

 

 

7,472,749

 

 

 

 

 

 

 

30,642,667

 

Texas — 1.2%

 

 

 

 

 

 

 

RBC Municipal Products Inc Trust, RB,
RBC Products Trust Residual, Series
0-5, 5.00%, 11/01/41 (d)(f)

 

 

1,860

 

 

3,931,445

 

Virginia — 1.9%

 

 

 

 

 

 

 

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

 

 

5,909

 

 

6,339,062

 

Washington — 3.6%

 

 

 

 

 

 

 

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

 

 

3,029

 

 

3,189,222

 

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

 

 

8,113

 

 

8,713,806

 

 

 

 

 

 

 

11,903,028

 

Total Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts – 32.5%

 

 

 

 

 

107,607,400

 

Total Long-Term Investments
(Cost – $516,306,651) – 158.6%

 

 

 

 

 

524,498,935

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Par
(000)

 

Value

 

Michigan – 1.1%

 

 

 

 

 

 

 

Michigan Finance Authority, RB, SAN
Detroit Schools, Series A-1, 6.45%,
2/20/12

 

$

3,580

 

$

3,580,000

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 

Money Market Funds – 3.1%

 

 

 

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.01% (i)(j)

 

 

10,401,503

 

 

10,401,503

 

Total Short-Term Securities
(Cost – $13,981,503) – 4.2%

 

 

 

 

 

13,981,503

 

Total Investments (Cost — $530,288,154*) - 162.8%

 

 

 

 

 

538,480,438

 

Other Assets Less Liabilities – 1.1%

 

 

 

 

 

3,594,732

 

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable – (18.2)%

 

 

 

 

 

(60,076,364

)

AMPS, at Redemption Value – (45.7)%

 

 

 

 

 

(151,303,529

)

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

330,695,277

 

 

 

 

 

 

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of November 30, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

469,290,631

 

Gross unrealized appreciation

 

$

21,050,088

 

Gross unrealized depreciation

 

 

(11,915,137

)

Net unrealized appreciation

 

$

9,134,951

 

 

 

(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)

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

 

(e)

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.

 

(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.

 

(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.


 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

NOVEMBER 30, 2011

6


 

 

 

Schedule of Investments (concluded)

BlackRock Municipal Income Trust II (BLE)

 

 

(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
November 30,
2011

 

Income

 

 

FFI Institutional
Tax-Exempt
Fund

 

 

11,840,465

 

 

(1,438,962

)

 

10,401,503

 

$

346

 

 

 

(j)

Represents the current yield as of report date.

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments. 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)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments is based on the pricing transparency of the investment and does not necessarily correspond to the Trust’s perceived risk of 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, 2011 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

—

 

$

524,498,935

 

 

—

 

$

524,498,935

 

Short-Term
Securities

 

$

10,401,503

 

 

3,580,000

 

 

—

 

 

13,981,503

 

Total

 

$

10,401,503

 

$

528,078,935

 

 

—

 

$

538,480,438

 

 

 

1

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


 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

NOVEMBER 30, 2011

7

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: January 23, 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: January 23, 2012
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Municipal Income Trust II
     
  Date: January 23, 2012