N-Q 1 d100237dnq.htm BLACKROCK MUNICIPAL INCOME TRUST II BLACKROCK MUNICIPAL INCOME TRUST II

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: 08/31/2016

Date of reporting period: 11/30/2015

Item 1 – Schedule of Investments

Schedule of Investments November 30, 2015 (Unaudited)

   

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

Alabama — 2.1%

  

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

    $ 1,620      $ 1,629,445   

County of Jefferson Alabama Sewer, Refunding RB:

     

Senior Lien, Series A (AGM), 5.00%, 10/01/44

      540        586,580   

Senior Lien, Series A (AGM), 5.25%, 10/01/48

      1,320        1,452,158   

Sub-Lien, Series D, 7.00%, 10/01/51

      3,220        3,903,445   
    

 

 

  
               7,571,628   

Arizona — 2.1%

  

Salt Verde Financial Corp., RB, Senior:

     

5.00%, 12/01/32

      5,635        6,453,258   

5.00%, 12/01/37

      1,000        1,117,230   
    

 

 

  
               7,570,488   

California — 10.9%

  

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, Series F-1, 5.63%, 4/01/19 (a)

      2,480        2,853,190   

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

      3,500        4,186,875   

California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 7/01/33

      1,365        1,573,968   

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

      180        181,012   

California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing,
Series A:

     

5.25%, 8/15/39

      160        178,942   

5.25%, 8/15/49

      395        440,299   

California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45 (b)

      1,655        1,749,451   

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A:

     

Senior, 5.00%, 5/15/40

      6,500        7,348,380   

5.25%, 5/15/39

      860        962,254   
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

  

City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/38

    $ 380      $ 462,984   

San Marcos Unified School District, GO, CAB, Election of 2010, Series B (c):

     

0.00%, 8/01/33

      3,000        1,469,550   

0.00%, 8/01/43

      2,500        755,900   

State of California, GO, Various Purposes:

     

6.00%, 3/01/33

      1,760        2,112,440   

6.50%, 4/01/33

      10,645        12,611,238   

State of California Public Works Board, LRB, Various Capital Projects:

     

Series I, 5.00%, 11/01/38

      825        943,025   

Sub-Series I-1, 6.38%, 11/01/34

      1,280        1,534,208   
    

 

 

  
               39,363,716   

Colorado — 1.1%

  

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

      2,330        2,617,289   

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

      1,375        1,389,369   
    

 

 

  
               4,006,658   

Connecticut — 0.3%

  

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

      1,005        1,101,902   

Delaware — 1.6%

  

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

      1,240        1,396,984   

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

      4,275        4,402,138   
    

 

 

  
               5,799,122   

District of Columbia — 5.3%

  

District of Columbia, Refunding RB, Kipp Charter School, Series A, 6.00%, 7/01/43

      820        937,900   
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2015    1

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

 

Municipal Bonds   

Par  

(000)

     Value  

District of Columbia (continued)

  

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

     

6.50%, 5/15/33

    $ 3,250      $ 4,027,465   

6.75%, 5/15/40

      11,500        11,501,035   

Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, 1st Senior Lien, Series A:

     

5.00%, 10/01/39

      550        607,783   

5.25%, 10/01/44

      2,000        2,219,660   
    

 

 

  
               19,293,843   

Florida — 5.7%

  

City of Atlantic Beach Florida, RB, Health Care Facilities, Fleet Landing Project, Series B, 5.63%, 11/15/43

      1,445        1,591,263   

City of Jacksonville Florida Port Authority, Refunding RB, AMT, 5.00%, 11/01/38

      1,665        1,792,872   

County of Collier Florida Health Facilities Authority, Refunding RB, Series A, 5.00%, 5/01/45

      1,450        1,587,851   

County of Miami-Dade Florida Aviation, Refunding ARB, Miami International Airport:

     

Series A, AMT (AGC), 5.25%, 10/01/38

      2,855        3,108,067   

Series A-1, 5.38%, 10/01/41

      1,255        1,423,697   

County of Miami-Dade Florida Water & Sewer System, RB, (AGM), 5.00%, 10/01/39

      5,000        5,655,350   

Mid-Bay Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21 (a)

      3,300        4,323,561   

Stevens Plantation Community Development District, Special Assessment, Series A,
7.10%, 5/01/35 (d)(e)

      1,895        1,326,292   
    

 

 

  
               20,808,953   

Georgia — 1.9%

  

City of Atlanta Georgia Water & Wastewater, Refunding RB, 5.00%, 11/01/40

      2,870        3,277,167   

County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 8/15/54

      555        649,328   
Municipal Bonds   

Par  

(000)

     Value  

Georgia (continued)

  

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

    $ 915      $ 1,024,287   

Municipal Electric Authority of Georgia, RB, Plant Vogtle Units 3 & 4 Project, Series A, 5.00%, 7/01/60

      1,660        1,778,640   
    

 

 

  
               6,729,422   

Hawaii — 0.5%

  

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

      1,480        1,673,110   

Illinois — 19.7%

  

City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien:

     

Series A, 5.75%, 1/01/39

      5,000        5,818,200   

Series C, 6.50%, 1/01/41

      6,430        7,739,662   

City of Chicago Illinois, GO, Project, Series A, 5.00%, 1/01/34

      3,050        3,075,345   

City of Chicago Illinois, GO, Refunding, Project, Series A, 5.25%, 1/01/32

      4,940        5,127,572   

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

      895        948,423   

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

      1,150        1,231,110   

City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42

      3,130        3,286,563   

County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38

      845        963,334   

Illinois Finance Authority, Refunding RB:

     

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

      1,060        1,170,611   

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

      1,750        1,999,655   

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

      7,445        7,547,518   

Illinois State Toll Highway Authority, RB:

     

Senior, Series C, 5.00%, 1/01/36

      2,815        3,171,492   

Senior, Series C, 5.00%, 1/01/37

      3,005        3,373,052   

Series A, 5.00%, 1/01/38

      2,520        2,800,426   
 

 

                
2    BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2015   

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

 

Municipal Bonds   

Par  

(000)

     Value  

Illinois (continued)

  

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

     

Series B (AGM), 5.00%, 6/15/50

    $ 6,725      $ 7,035,762   

Series B-2, 5.00%, 6/15/50

      2,725        2,787,075   

Railsplitter Tobacco Settlement Authority, RB:

     

5.50%, 6/01/23

      520        606,653   

6.00%, 6/01/28

      1,255        1,490,814   

State of Illinois, GO:

     

5.00%, 2/01/39

      1,640        1,694,300   

Series A, 5.00%, 4/01/35

      2,500        2,599,400   

Series A, 5.00%, 4/01/38

      3,885        4,007,455   

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

      685        757,829   

University of Illinois, RB, Auxiliary Facilities System, Series A:

     

5.00%, 4/01/39

      860        944,056   

5.00%, 4/01/44

      1,050        1,147,094   
    

 

 

  
               71,323,401   

Indiana — 4.6%

  

Carmel Redevelopment Authority, Refunding RB, Multipurpose, Series A, 4.00%, 2/01/38

      675        701,824   

City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:

     

6.75%, 1/01/34

      845        1,021,039   

7.00%, 1/01/44

      3,535        4,305,029   

Indiana Finance Authority, RB, Series A:

     

CWA Authority Project, 1st Lien, 5.25%, 10/01/38

      3,510        4,098,873   

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 1/01/51

      435        464,393   

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/44

      485        515,633   

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/48

      1,610        1,702,736   

Sisters of St. Francis Health Services, 5.25%, 11/01/39

      915        1,014,872   

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

      1,200        1,359,132   
Municipal Bonds   

Par  

(000)

     Value  

Indiana (continued)

  

Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 1/15/40

    $ 1,380      $ 1,532,448   
    

 

 

  
               16,715,979   

Iowa — 2.4%

  

Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project:

     

5.00%, 12/01/19

      1,040        1,100,185   

5.50%, 12/01/22

      2,550        2,685,992   

5.25%, 12/01/25

      500        544,225   

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

      1,435        1,525,118   

Iowa Tobacco Settlement Authority, Refunding RB, Asset-Backed, Series C, 5.63%, 6/01/46

      3,095        2,957,984   
    

 

 

  
               8,813,504   

Kentucky — 0.6%

  

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45

      1,060        1,172,689   

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 0.00%, 7/01/43 (f)

      1,280        930,432   
    

 

 

  
               2,103,121   

Louisiana — 2.8%

  

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

      3,650        4,299,590   

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:

     

5.50%, 5/15/30

      1,100        1,233,749   

5.25%, 5/15/31

      935        1,043,928   

5.25%, 5/15/32

      1,195        1,347,446   

5.25%, 5/15/33

      1,300        1,441,167   
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2015    3

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

 

Municipal Bonds   

Par  

(000)

     Value  

Louisiana (continued)

  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A (continued):

     

5.25%, 5/15/35

    $ 545      $ 605,310   
    

 

 

  
               9,971,190   

Maryland — 1.1%

  

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

      475        518,073   

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

      800        620,112   

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

      2,400        2,670,696   
    

 

 

  
               3,808,881   

Massachusetts — 0.7%

  

Massachusetts Development Finance Agency, Refunding RB, Covanta Energy Project, Series C, AMT, 5.25%, 11/01/42 (b)

      1,530        1,534,361   

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

      955        1,060,489   
    

 

 

  
               2,594,850   

Michigan — 2.8%

  

City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 7/01/39

      4,825        5,255,487   

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

      1,500        1,667,955   

Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 7/01/44

      940        1,001,767   
Municipal Bonds   

Par  

(000)

     Value  

Michigan (continued)

  

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

    $ 2,305      $ 2,390,423   
    

 

 

  
               10,315,632   

Missouri — 2.1%

  

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

      6,000        5,680,860   

Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44

      275        304,989   

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

      1,135        1,220,012   

State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 5/01/43

      265        290,649   
    

 

 

  
               7,496,510   

Multi-State — 2.0%

  

Centerline Equity Issuer Trust (b)(g):

     

Series A-4-2, 6.00%, 5/15/19

      3,500        3,939,950   

Series B-3-2, 6.30%, 5/15/19

      3,000        3,403,470   
    

 

 

  
               7,343,420   

Nebraska — 1.6%

  

Central Plains Energy Project Nebraska, RB, Gas Project No. 3:

     

5.25%, 9/01/37

      895        988,993   

5.00%, 9/01/42

      1,570        1,693,810   

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

      1,245        1,393,665   
 

 

                
4    BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2015   

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

 

Municipal Bonds   

Par  

(000)

     Value  

Nebraska (continued)

  

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

    $ 1,635      $ 1,785,682   
    

 

 

  
               5,862,150   

Nevada — 0.7%

  

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

      2,465        2,506,585   

New Jersey — 8.7%

  

Casino Reinvestment Development Authority, Refunding RB:

     

5.25%, 11/01/39

      1,100        1,109,306   

5.25%, 11/01/44

      1,640        1,645,724   

County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 7/01/45 (b)

      1,165        1,197,783   

New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT:

     

4.88%, 9/15/19

      870        916,771   

5.13%, 9/15/23

      2,130        2,327,046   

5.25%, 9/15/29

      2,130        2,320,166   

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

      7,475        9,118,155   

New Jersey State Turnpike Authority, RB, Series A, 5.00%, 1/01/43

      2,160        2,386,476   

New Jersey Transportation Trust Fund Authority, RB:

     

Transportation Program, Series AA, 5.00%, 6/15/44

      3,760        3,830,575   

Transportation System, Series B, 5.25%, 6/15/36

      2,690        2,809,382   

New Jersey Turnpike Authority, RB, Series E, 5.00%, 1/01/45

      2,810        3,135,567   

Rutgers — The State University of New Jersey, Refunding RB, Series L, 5.00%, 5/01/43

      570        639,272   
    

 

 

  
               31,436,223   

New York — 9.4%

  

City of New York New York Industrial Development Agency, ARB, American Airlines, Inc., JFK International Airport Project, AMT, 7.75%, 8/01/31 (h)

      6,700        7,021,131   
Municipal Bonds   

Par  

(000)

     Value  

New York (continued)

  

City of New York New York Transitional Finance Authority, RB, Fiscal 2012, Sub-Series E-1, 5.00%, 2/01/42

    $ 2,680      $ 2,998,947   

County of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 6/01/41 (b)

      2,000        2,078,380   

County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44

      832        918,613   

Metropolitan Transportation Authority, RB, Series B:

     

5.25%, 11/15/38

      2,555        2,962,982   

5.25%, 11/15/39

      910        1,054,581   

New York Liberty Development Corp., Refunding RB:

     

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49

      1,335        1,503,837   

3 World Trade Center Project, Class 1, 5.00%, 11/15/44 (b)

      4,640        4,742,080   

3 World Trade Center Project, Class 2, 5.15%, 11/15/34 (b)

      365        379,731   

3 World Trade Center Project, Class 2, 5.38%, 11/15/40 (b)

      910        955,828   

New York State Dormitory Authority, Refunding RB, General Purpose, Series A, 5.00%, 6/15/31

      1,930        2,268,329   

Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42 (b)

      1,145        1,152,706   

Port Authority of New York & New Jersey, ARB, JFK International Air Terminal LLC Project, Series 8:

     

6.00%, 12/01/42

      1,635        1,907,555   

Special Project, 6.00%, 12/01/36

      1,410        1,645,047   
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2015    5

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

 

Municipal Bonds   

Par  

(000)

     Value  

New York (continued)

  

Westchester Tobacco Asset Securitization, Refunding RB, 5.13%, 6/01/45

    $ 2,500      $ 2,478,575   
    

 

 

  
               34,068,322   

North Carolina — 3.2%

  

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

      6,500        6,522,685   

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

      1,000        1,064,600   

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

      1,525        1,692,018   

North Carolina Medical Care Commission, Refunding RB, 1st Mortgage:

     

Aldersgate, 6.25%, 7/01/35

      1,530        1,688,003   

Retirement Facilities Whitestone Project, Series A, 7.75%, 3/01/41

      625        713,688   
    

 

 

  
               11,680,994   

Ohio — 2.4%

  

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

      3,405        3,789,152   

County of Franklin Ohio, RB, Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 7/01/40

      710        778,060   

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

      3,025        3,237,446   
Municipal Bonds   

Par  

(000)

     Value  

Ohio (continued)

  

State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 6/30/53

    $ 870      $ 931,309   
    

 

 

  
               8,735,967   

Pennsylvania — 2.8%

  

Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A, 5.00%, 5/01/42

      2,500        2,595,750   

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 7/01/42

      685        733,710   

Pennsylvania Economic Development Financing Authority, RB:

     

AMT, Pennsylvania Bridge Finco LP, 5.00%, 6/30/42

      3,030        3,239,313   

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

      2,065        2,288,722   

Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44

      1,190        1,319,067   
    

 

 

  
               10,176,562   

Rhode Island — 0.8%

  

Tobacco Settlement Financing Corp., Refunding RB, Series B, 4.50%, 6/01/45

      2,850        2,826,972   

South Carolina — 2.8%

  

South Carolina State Ports Authority, RB:

     

5.25%, 7/01/40

      3,595        4,024,135   

AMT, 5.25%, 7/01/55

      1,390        1,527,860   

State of South Carolina Public Service Authority, RB, Series A, 5.50%, 12/01/54

      4,170        4,719,815   
    

 

 

  
               10,271,810   

Tennessee — 0.4%

  

City of Chattanooga Tennessee Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45

      1,470        1,626,276   

Texas — 13.5%

  

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

      2,400        144,000   
 

 

                
6    BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2015   

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

 

Municipal Bonds   

Par  

(000)

     Value  

Texas (continued)

  

Central Texas Regional Mobility Authority, Refunding RB:

     

Senior Lien, 6.25%, 1/01/46

    $ 2,350      $ 2,707,717   

Sub-Lien, 5.00%, 1/01/33

      390        421,336   

Central Texas Transportation Commission Turnpike System, Refunding RB, Series C, 5.00%, 8/15/42

      630        685,572   

City of Austin Texas Airport System, ARB, Revenue, AMT, 5.00%, 11/15/39

      665        736,275   

City of Dallas Texas Waterworks & Sewer System, Refunding RB, 5.00%, 10/01/35

      1,650        1,884,201   

City of Houston Texas Airport System, Refunding ARB:

     

Senior Lien, Series A, 5.50%, 7/01/39

      1,675        1,842,299   

United Airlines, Inc. Terminal E Project, AMT, 5.00%, 7/01/29

      460        494,518   

City of Houston Texas Utility System, Refunding RB, Combined 1st Lien, Series A (AGC), 6.00%, 11/15/35

      9,145        10,646,152   

County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 1/01/48

      485        569,996   

County of Harris Texas-Houston Sports Authority, Refunding RB, 3rd Lien, Series A-3 (NPFGC), 0.00%, 11/15/36 (c)

      25,375        8,289,759   

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Projects, Series A, 0.00%, 9/15/37 (c)

      6,055        2,354,245   

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare:

     

6.00%, 8/15/20 (a)

      325        392,272   

6.00%, 8/15/45

      4,085        4,825,692   

North Texas Tollway Authority, Refunding RB, 2nd Tier System, Series F, 6.13%, 1/01/16 (a)

      6,790        6,824,425   
Municipal Bonds   

Par  

(000)

     Value  

Texas (continued)

  

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      $ 3,598,950   

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

      2,250        2,637,450   
    

 

 

  
               49,054,859   

Utah — 0.7%

  

Utah State Charter School Finance Authority, RB, Ogden Preparatory Academy, Series A:

     

3.25%, 10/15/36

      1,035        934,315   

3.25%, 10/15/42

      1,660        1,433,576   
    

 

 

  
               2,367,891   

Virginia — 1.5%

  

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

     

5.25%, 1/01/32

      1,755        1,941,820   

6.00%, 1/01/37

      3,180        3,647,937   
    

 

 

  
               5,589,757   

Washington — 4.0%

  

City of Bellingham Washington Water & Sewer, RB, 5.00%, 8/01/36

      5,050        5,724,730   

Grant County Public Utility District No 2, Refunding RB, Series A:

     

5.00%, 1/01/41

      2,035        2,327,816   

5.00%, 1/01/43

      2,335        2,664,539   

Port of Seattle Washington, RB, Series C, AMT, 5.00%, 4/01/40

      815        892,270   

Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 1/01/45

      2,445        2,832,386   
    

 

 

  
               14,441,741   

Wisconsin — 0.3%

  

State of Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Senior Credit Group, Series E, 5.00%, 11/15/33

      910        1,024,951   
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2015    7

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

 

Municipal Bonds   

Par  

(000)

     Value  

Wyoming — 1.5%

  

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

    $ 3,355      $ 3,784,809   

Wyoming Municipal Power Agency, Inc., RB, Series A:

     

5.50%, 1/01/33

      800        862,552   

5.50%, 1/01/38

      750        808,643   
    

 

 

  
               5,456,004   
Total Municipal Bonds — 124.6%        451,532,394   
    
                  

Municipal Bonds Transferred to

Tender Option Bond Trusts (i)

             

Alabama — 0.7%

  

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

      2,519        2,613,153   

California — 5.4%

  

California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (j)

      2,850        3,171,907   

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

      10,335        11,595,457   

Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/17 (a)

      2,530        2,712,337   

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

      1,840        2,093,671   
    

 

 

  
               19,573,372   

Colorado — 2.0%

  

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

     

Series C-3, 5.10%, 10/01/41

      4,230        4,450,383   

Municipal Bonds Transferred to

Tender Option Bond Trusts (i)

   

Par  

(000)

     Value  

Colorado (continued)

  

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

     

Series C-7, 5.00%, 9/01/36

    $ 2,710      $ 2,855,635   
    

 

 

  
               7,306,018   

Connecticut — 3.0%

  

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

     

Series T-1, 4.70%, 7/01/29

      5,179        5,465,485   

Series X-3, 4.85%, 7/01/37

      5,143        5,446,263   
    

 

 

  
               10,911,748   

Georgia — 1.4%

  

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

      4,638        5,080,362   

Massachusetts — 0.8%

  

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

      2,461        2,842,025   

New Hampshire — 0.7%

  

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

      2,219        2,503,309   

New York — 10.8%

  

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution:

     

Series FF-2, 5.50%, 6/15/40

      1,710        1,939,846   

Series HH, 5.00%, 6/15/31 (j)

      9,150        10,628,091   

Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (j)

      1,750        1,996,780   

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

      11,670        13,409,437   

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

      7,040        8,122,678   
 

 

                
8    BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2015   

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

 

Municipal Bonds Transferred to

Tender Option Bond Trusts (i)

   

Par  

(000)

     Value  

New York (continued)

  

Port Authority of New York & New Jersey, Refunding RB, 194th Series, 5.25%, 10/15/55

    $ 2,790      $ 3,217,233   
    

 

 

  
               39,314,065   

North Carolina — 0.9%

  

North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, 5.00%, 10/01/55

      2,740        3,130,888   

Texas — 3.0%

  

City of San Antonio Texas Public Service Board, RB, Electric & Gas Systems, Junior Lien, 5.00%, 2/01/43

      2,660        2,955,473   

County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41

      3,720        4,296,935   

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

      3,347        3,804,657   
    

 

 

  
               11,057,065   

Utah — 1.2%

  

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

      3,959        4,302,853   

Virginia — 1.8%

  

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

      5,909        6,452,369   

Washington — 3.4%

  

Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/17 (a)

      3,029        3,274,487   

Municipal Bonds Transferred to

Tender Option Bond Trusts (i)

   

Par  

(000)

     Value  

Washington (continued)

  

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

    $ 8,113      $ 8,993,692   
    

 

 

  
               12,268,179   

Total Municipal Bonds Transferred to

Tender Option Bond Trusts — 35.1%

  

  

     127,355,406   
Total Long-Term Investments
(Cost — $533,675,602) — 159.7%		         578,887,800   
    
                  
Short-Term Securities — 0.4%    Shares         

FFI Institutional Tax-Exempt Fund, 0.02% (k)(l)

      1,386,377        1,386,377   

Total Short-Term Securities

(Cost — $1,386,377) — 0.4%

  

  

     1,386,377   
Total Investments (Cost — $535,061,979) — 160.1%        580,274,177   
Other Assets Less Liabilities — 1.5%        5,460,203   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (19.9)%

   

     (71,935,162 ) 
VMTP Shares, at Liquidation Value — (41.7)%        (151,300,000 ) 
    

 

 

  
Net Assets Applicable to Common Shares — 100.0%      $ 362,499,218   
    

 

 

  

 

*   As of November 30, 2015, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

   $ 463,949,739   
 

 

 

  

Gross unrealized appreciation

   $ 49,138,337   

Gross unrealized depreciation

     (4,738,966 ) 
 

 

 

  

Net unrealized appreciation

   $ 44,399,371   
 

 

 

  
 
Notes to Schedule of Investments

 

(a)   U.S. 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.

 

(b)   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.

 

(c)   Zero-coupon bond.

 

(d)   Issuer filed for bankruptcy and/or is in default of interest payments.

 

(e)   Non-income producing security.

 

(f)   Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of period end.

 

(g)   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.

 

(h)   Variable rate security. Rate shown is as of period end.

 

                
   BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2015    9

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

 

 

(i)   Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing.

 

(j)   All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB Trust Certificates and proceeds received from the sale of the security contributed to the TOB Trust or in the event of a default on the security. In the case of a shortfall or default, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreement(s), which expire between October 1, 2016 to November 15, 2019 is 14,496,598.

 

(k)   During the period ended November 30, 2015, investments in issuers considered to be an affiliate of the Trust 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,
2015		        Net
Activity		        Shares Held
at November 30,
2015		        Income  

FFI Institutional Tax-Exempt Fund

        11,886,794           (10,500,417 )         1,386,377         $ 245   

 

(l)   Represents the current yield as of period end.

 

Portfolio Abbreviations

 

AGC    Assured Guarantee Corp.
AGM    Assured Guaranty Municipal Corp.
AMBAC    American Municipal Bond Assurance Corp.
AMT    Alternative Minimum Tax (subject to)
ARB    Airport Revenue Bonds
CAB    Capital Appreciation Bonds
EDA    Economic Development Authority
EDC    Economic Development Corp.
GARB    General Airport Revenue Bonds
GO    General Obligation Bonds
HFA    Housing Finance Agency
LRB    Lease Revenue Bonds
NPFGC    National Public Finance Guarantee Corp.
RB    Revenue Bonds
S/F    Single-Family

 

Derivative Financial Instruments Outstanding as of Period End

Financial Futures Contracts

 

Contracts
(Short)		     Issue   Expiration   Notional
Value		     Unrealized
Depreciation		  
  (23 )    5-Year U.S. Treasury Note   March 2016   $ 2,729,633      $ (752 ) 
  (30 )    10-Year U.S. Treasury Note   March 2016     3,793,125        (7,544 ) 
  (14 )    Long U.S. Treasury Bond   March 2016     2,156,000        (7,348 ) 
  (4 )    Ultra U.S. Treasury Bond   March 2016     633,750        (2,068 ) 
  Total            $ (17,712 ) 
       

 

 

  

 

 

                
10    BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2015   

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

 

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  •  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

 

  •  

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 Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments are typically categorized as level 3.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value 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 investments 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, refer to the Trust’s most recent financial statements as contained in its annual report.

As of period end, the following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                 

Investments:

                 

Long-Term Investments1

     —         $ 578,887,800         —      $ 578,887,800   

Short-Term Securities

   $ 1,386,377           —         —        1,386,377   
 

 

 

  

Total

   $ 1,386,377         $ 578,887,800         —      $ 580,274,177   
 

 

 

  

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

       

     Level 1        Level 2        Level 3      Total  

Derivative Financial Instruments1

                 

Liabilities:

                 

Interest rate contracts

   $ (17,712 )         —         —      $ (17,712 ) 

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

       

 

                
   BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2015    11

Schedule of Investments (concluded)

   

BlackRock Municipal Income Trust II (BLE)

 

The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                 

Cash pledged for financial futures contracts

   $ 125,800           —         —      $ 125,800   

Liabilities:

                 

TOB Trust Certificates

     —         $ (71,925,067 )       —        (71,925,067 ) 

VMTP Shares

     —           (151,300,000 )       —        (151,300,000 ) 
 

 

 

  

Total

   $ 125,800         $ (223,225,067 )       —      $ (223,099,267 ) 
 

 

 

  

During the period ended November 30, 2015, there were no transfers between levels.

 

                
12    BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2015   

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 22, 2016

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 22, 2016
By:    /s/ Neal J. Andrews                    
   Neal J. Andrews
   Chief Financial Officer (principal financial officer) of
   BlackRock Municipal Income Trust II
Date:    January 22, 2016