UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-08709

Western Asset High Income Fund II Inc. (HIX).

Exact name of registrant as specified in charter)

620 Eighth Avenue, 47th Floor, New York, NY 10018

(Address of principal executive offices) (Zip code)

Marc A. De Oliveira.

Franklin Templeton

100 First Stamford Place 

Stamford, CT 06902

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-888-777-0102

Date of fiscal year end: April 30

Date of reporting period: April 30, 2023

Explanatory note

The Registrant is filing this amendment (Amendment No. 2) to its Form N-CSR for the year ended April 30, 2023, as originally filed with the Securities and Exchange Commission on July 7, 2023 (Accession Number 0001193125-23-183429) and subsequently amended on July 10, 2023 (Accession Number 0001193125-23-184770) (Amendment No. 1) for the purpose of correcting an omission in the certification filed as an exhibit to the Form N-CSR in accordance with Section 906 of the Sarbanes-Oxley Act. Except as set forth above, no other changes have been made to the Form N-CSR, and this amended filing does not amend, update, or change any other items or disclosure found in the Form N-CSR.

ITEM 1. REPORT TO STOCKHOLDERS.

The Annual Report to Stockholders is filed herewith.

Annual Report April 30, 2023

WESTERN ASSET

HIGH INCOME FUND II

INC. (HIX)

INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

What’s inside
Letter from the chairman	III
Fund overview	1
Fund at a glance	7
Fund performance	8
Schedule of investments	10
Statement of assets and liabilities	25
Statement of operations	26
Statements of changes in net assets	27
Statement of cash flows	28
Financial highlights	30
Notes to financial statements	32
Report of independent registered public accounting firm	49
Additional shareholder information	50
Additional information	51
Annual chief executive officer and principal financial officer certifications	57
Other shareholder communications regarding accounting matters	58
Important information to shareholders	59
Summary of information regarding the Fund	63
Dividend reinvestment plan	79
Important tax information	81

Fund objectives

The Fund seeks to maximize current income. As a secondary objective, the Fund seeks capital appreciation to the extent consistent with its objective of seeking to maximize current income.

Under normal market conditions, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in high-yield debt securities. In addition, the Fund may invest up to 35% of its total assets in debt securities of issuers located in emerging market countries.

II Western Asset High Income Fund II Inc.

Letter from the chairman

Dear Shareholder,

We are pleased to provide the annual report of Western Asset High Income Fund II Inc. for the twelve-month reporting period ended April 30, 2023. Please read on for a detailed look at prevailing economic and market conditions during the Fund’s reporting period and to learn how those conditions have affected Fund performance.

As always, we remain committed to providing you with excellent service and a full spectrum of investment choices. We also remain committed to supplementing the support you receive from your financial advisor. One way we accomplish this is through our website, www.franklintempleton.com. Here you can gain immediate access to market and investment information, including:

• Fund prices and performance,

• Market insights and commentaries from our portfolio managers, and

• A host of educational resources.

We look forward to helping you meet your financial goals.

Sincerely,

Jane Trust, CFA

Chairman, President and Chief Executive Officer

May 31, 2023

Western Asset High Income Fund II Inc. III

Fund overview

Q. What is the Fund’s investment strategy?

A. The Fund seeks to maximize current income. As a secondary objective, the Fund seeks capital appreciation to the extent consistent with its objective of seeking to maximize current income. Under normal market conditions, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in high-yield debt securities. The Fund may invest up to 35% of its total assets in debt securities of issuers located in emerging market countries. It may also invest up to 30% of its assets in zero coupon securities, payment-in-kind bonds and deferred payment securities, and up to 20% of its assets in equity securities. The Fund may utilize a variety of derivative instruments for investment or risk management purposes, such as options, futures contracts, swap agreements including credit default swaps. We employ an actively managed approach that is risk-controlled and assimilates top-down macroeconomic views with industry sector insights and bottom-up credit research to derive the general framework for the Fund’s predominantly non-investment grade credit mandate. This framework provides the foundation for how the portfolio is positioned with respect to risk (aggressive, neutral, conservative), as well as identifying sector overweights and underweights.

Risk and weightings are reviewed on a regular basis. Our bottom-up process provides the basis for populating the targeted industry weightings through individual credit selection. Analysts work closely with portfolio managers to determine which credits provide the best risk/reward relationship within their respective sectors. The research team focuses on key fundamental measures such as leverage, cash flow adequacy, liquidity, amortization schedule, underlying asset value and management integrity/track record.

At Western Asset Management Company, LLC (“Western Asset”), the Fund’s subadviser, we utilize a fixed income team approach, with decisions derived from interaction among various investment management sector specialists. The sector teams are comprised of Western Asset’s senior portfolio management personnel, research analysts and an in-house economist. Under this team approach, management of client fixed income portfolios will reflect a consensus of interdisciplinary views within the Western Asset organization. The individuals responsible for development of investment strategy, day-to-day portfolio management, oversight and coordination of the Fund are S. Kenneth Leech, Michael C. Buchanan and Christopher F. Kilpatrick.

Q. What were the overall market conditions during the Fund’s reporting period?

A. Fixed income markets experienced periods of volatility and declined over the twelve-month reporting period ended April 30, 2023. The market’s weakness was driven by a number of factors, including elevated and persistent inflation, aggressive Federal Reserve Board (the “Fed”) monetary policy tightening, the repercussions from the COVID-19 pandemic, the war in Ukraine, and recent turmoil in the banking industry.

Short-term U.S. Treasury yields moved sharply higher as the Fed began to raise interest rates in March 2022 (before the reporting period began) in attempt to rein in inflation. Over the next twelve months, the central bank hiked rates an additional eight times, bringing the

Western Asset High Income Fund II Inc. 2023 Annual Report 1

Fund overview (cont’d)

federal funds rate to a range between 4.75% and 5.00% — the highest level since 2007. The Fed then raised rates to a range between 5.00% and 5.25% on May 3, 2023, after the reporting period ended. The yield for the two-year Treasury note began the reporting period at 2.70% and ended the period at 4.04%. The low of 2.46% occurred on May 26, 2022, and the high of 5.05% took place on March 8, 2023. The yield for the ten-year Treasury note began the reporting period at 2.89% and ended the period at 3.44%. The low of 2.60% occurred on August 1, 2022, and the peak of 4.25% took place on October 24, 2022.

All told, the Bloomberg U.S. Aggregate Indexⁱ returned -0.43% for the twelve months ended April 30, 2023. Riskier fixed income securities, including high-yield bonds, produced weak results. Over the fiscal year, the Bloomberg U.S. Corporate High Yield — 2% Issuer Cap Indexⁱⁱ returned 1.21%. Elsewhere, the JPMorgan Emerging Markets Bond Index Global (“EMBI Global”)ⁱⁱⁱ returned 0.10% for the twelve months ended April 30, 2023.

Q. How did we respond to these changing market conditions?

A. A number of changes were made to the Fund during the reporting period. We increased the Fund’s opportunistic allocation to investment-grade corporate bonds, including credits in the banking industry given better relative value. We also marginally increased both the Fund’s corporate and sovereign emerging market exposure given improved valuations. Furthermore, we felt these issuers should benefit from less hawkish central banks globally as we approach what we believe are the latter innings of current rate hiking cycle. We reduced our exposure to floating rate secured loans given the outperformance of the loan market. In addition, their valuations appeared less attractive as the reporting period progressed. From a quality ratings perspective, we continue to focus on B, BB and BBB rated bonds rather than lower quality issuers.

During the reporting period, we tactically utilized leverage in the Fund. We ended the period with leverage as a percentage of total assets of approximately 27%, versus roughly 33% when the period began. The use of leverage detracted from results.

Currency forwards, which were used to help manage the Fund’s currency exposures, detracted from performance.

Performance review

For the twelve months ended April 30, 2023, Western Asset High Income Fund II Inc. returned -9.18% based on its net asset value (“NAV”)^iv and 0.04% based on its New York Stock Exchange (“NYSE”) market price per share. The Fund’s unmanaged benchmarks, the Bloomberg U.S. Corporate High Yield — 2% Issuer Cap Index and the EMBI Global, returned 1.21% and 0.10%, respectively, for the same period.

The Fund has a practice of seeking to maintain a relatively stable level of distributions to shareholders. This practice has no impact on the Fund’s investment strategy and may reduce the Fund’s NAV. The Fund’s manager believes the practice helps maintain the Fund’s competitiveness and may benefit the Fund’s market price and premium/discount to the Fund’s NAV.

2 Western Asset High Income Fund II Inc. 2023 Annual Report  

During the twelve-month period, the Fund made distributions to shareholders totaling $0.59 per share of which $0.11 will be treated as a return of capital for tax purposes.* The performance table shows the Fund’s twelve-month total return based on its NAV and market price as of April 30, 2023. Past performance is no guarantee of future results.

Performance Snapshot as of April 30, 2023
Price Per Share	12-Month Total Return**
$4.74 (NAV)		-9.18	%†
$4.79 (Market Price)		0.04	%‡

All figures represent past performance and are not a guarantee of future results.

** Total returns are based on changes in NAV or market price, respectively. Returns reflect the deduction of all Fund expenses, including management fees, operating expenses, and other Fund expenses. Returns do not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares.

† Total return assumes the reinvestment of all distributions, including returns of capital, at NAV.

‡ Total return assumes the reinvestment of all distributions, including returns of capital, in additional shares in accordance with the Fund’s Dividend Reinvestment Plan.

Q. What were the leading contributors to performance?

A. Within our developed market high-yield allocation, several positions were rewarded during the reporting period. Our issuers in the transportation space and a handful of our European issuers outperformed. Norwegian Cruise Lines (NCL), American Airlines, Delta Airlines, and Global Aircraft Leasing are examples of issuers that posted positive fundamental results and performed well. We felt these issuers would benefit from pent-up demand post the Covid-19 pandemic. Among our European issuers, gaming company 888 Acquisitions, and global packaging company Ardagh Packaging also performed well after posting stable results.

Within our emerging markets allocation, Teva Pharmaceuticals, a global pharmaceutical company that specializes in generic drugs, was additive to results. The company continues to post stable fundamental results and we feel it can eventually get upgraded back to investment grade. Additionally, in emerging markets, our overweight to Mexican local sovereign debt performed well. Mexico could benefit longer-term from a shift away from China for manufacturing given heightened geopolitical uncertainty.

Our small overweight allocation to floating rate secured bank loans was also beneficial. Bank loans performed well as investors flocked to the short-term loan market as rates increased. Within our loan allocation, an overweight position in U.S-based airline United Airlines was rewarded.

* For the character of distributions paid during the fiscal year ended April 30, 2023, please refer to page 46 of this report.

Western Asset High Income Fund II Inc. 2023 Annual Report 3

Fund overview (cont’d)

Q. What were the leading detractors from performance?

A. The largest detractor from the Fund’s relative performance was its overweight allocation in both investment-grade and below investment-grade financials sector. Specifically, the Fund’s overweight to Swiss global money center bank Credit Suisse Group AG was the largest detractor. During the latter portion of the reporting period markets were experiencing stress in the banking system, both globally and the regional banks in the U.S. The Swiss government and the Swiss banking regulator forced a merger with Credit Suisse and their competitor UBS. The initial terms of the transaction have been unfavorable for subordinated debt holders.

Within our high-yield allocation, an overweight to the below investment-grade communication services sector detracted from results. The sector has recently experienced increased competition and less-predictable fundamental results. Specifically, our positioning in satellite video and wireless service provider Dish Network and tri-state cable company Altice USA (Cablevision) underperformed. Both companies have posted lackluster fundamental results recently and have near-term maturities to address. However, we believe their valuations are still compelling.

An overweight to emerging markets detracted from results, as they tend to be more sensitive to increases in interest rates and questions concerning the global growth outlook. We think the valuations are compelling in emerging markets and we are in the latter stages of central banks quantitative tightening. Issuer examples that underperformed were overweights to Macau’s Melco Resorts Financing and sovereign bonds issued by Ecuador.

An overweight to higher quality investment-grade rated issuers was not rewarded. Rates moved higher during the reporting period and longer duration and higher quality issuers underperformed.

Looking for additional information?

The Fund is traded under the symbol “HIX” and its closing market price is available in most newspapers under the NYSE listings. The daily NAV is available online under the symbol “XHGIX” on most financial websites. Barron’s and The Wall Street Journal’s Monday edition both carry closed-end fund tables that provide additional information. In addition, the Fund issues a quarterly press release that can be found on most major financial websites as well as www.franklintempleton.com.

In a continuing effort to provide information concerning the Fund, shareholders may call 1-888-777-0102 (toll free), Monday through Friday from 8:00 a.m. to 5:30 p.m. Eastern Time, for the Fund’s current NAV, market price and other information.

4 Western Asset High Income Fund II Inc. 2023 Annual Report

Thank you for your investment in Western Asset High Income Fund II Inc. As always, we appreciate that you have chosen us to manage your assets and we remain focused on achieving the Fund’s investment goals.

Sincerely,

Western Asset Management Company, LLC

May 18, 2023

RISKS: The Fund is a diversified closed-end management investment company designed primarily as a long-term investment and not as a trading vehicle. The Fund is not intended to be a complete investment program and, due to the uncertainty inherent in all investments, there can be no assurance that the Fund will achieve its investment objective. The Fund’s common stock is traded on the New York Stock Exchange. Similar to stocks, the Fund’s share price will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. Shares of closed-end funds often trade at a discount to their net asset value. Diversification does not assure against market loss. The Fund’s investments are subject to a number of risks, such as credit risk, inflation risk and interest rate risk. As interest rates rise, bond prices fall, reducing the value of the Fund’s holdings. The Fund may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. High-yield bonds, known as “junk bonds,” involve greater credit and liquidity risks than investment grade bonds. Foreign securities are subject to certain risks not associated with domestic investing, such as currency fluctuations and changes in political and economic conditions which could result in significant fluctuations. These risks are magnified in emerging markets. Emerging market countries tend to have economic, political and legal systems that are less developed and are less stable than those of more developed countries. The Fund is also permitted purchases of equity securities. Equity securities generally have greater price volatility than fixed income securities. Leverage may result in greater volatility of NAV and the market price of common shares and increases a shareholder’s risk of loss. The market values of securities or other assets will fluctuate, sometimes sharply and unpredictably, due to changes in general market conditions, overall economic trends or events, governmental actions or intervention, actions taken by the U.S. Federal Reserve or foreign central banks, market disruptions caused by trade disputes or other factors, political developments, armed conflicts, economic sanctions and countermeasures in response to sanctions, major cybersecurity events, investor sentiment, the global and domestic effects of a pandemic, and other factors that may or may not be related to the issuer of the security or other asset. The Fund may also invest in money market funds, including funds affiliated with the Fund’s manager and subadvisers. For more information on Fund risks, see Summary of information regarding the Fund — Principal Risk Factors in this report.

Portfolio holdings and breakdowns are as of April 30, 2023 and are subject to change and may not be representative of the portfolio managers’ current or future investments. Please refer to pages 10 through 25 for a list and percentage breakdown of the Fund’s holdings.

The mention of sector breakdowns is for informational purposes only and should not be construed as a recommendation to purchase or sell any securities. The information provided regarding such sectors is

Western Asset High Income Fund II Inc. 2023 Annual Report 5

Fund overview (cont’d)

not a sufficient basis upon which to make an investment decision. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies discussed should consult their financial professional. The Fund’s top five sector holdings (as a percentage of net assets) as of April 30, 2023 were: consumer discretionary (28.5%), communication services (21.4%), energy (19.8%), financials (17.3%) and industrials (13.9%). The Fund’s portfolio composition is subject to change at any time.

All investments are subject to risk including the possible loss of principal. Past performance is no guarantee of future results. All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.

The information provided is not intended to be a forecast of future events, a guarantee of future results or investment advice. Views expressed may differ from those of the firm as a whole.

ⁱ The Bloomberg U.S. Aggregate Index is a broad-based bond index comprised of government, corporate, mortgage- and asset-backed issues, rated investment grade or higher, and having at least one year to maturity.

ⁱⁱ The Bloomberg U.S. Corporate High Yield — 2% Issuer Cap Index is an index of the 2% Issuer Cap component of the Bloomberg U.S. Corporate High Yield Index, which covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market.

ⁱⁱⁱ The JPMorgan Emerging Markets Bond Index Global (“EMBI Global”) tracks total returns for U.S. dollar-denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans, Eurobonds and local market instruments.

^iv Net asset value (“NAV”) is calculated by subtracting total liabilities, including liabilities associated with financial leverage (if any), from the closing value of all securities held by the Fund (plus all other assets) and dividing the result (total net assets) by the total number of the common shares outstanding. The NAV fluctuates with changes in the market prices of securities in which the Fund has invested. However, the price at which an investor may buy or sell shares of the Fund is the Fund’s market price as determined by supply of and demand for the Fund’s shares.

6 Western Asset High Income Fund II Inc. 2023 Annual Report

Fund at a glance^† (unaudited)

Investment breakdown (%) as a percent of total investments

† The bar graph above represents the composition of the Fund’s investments as of April 30, 2023 and April 30, 2022 and does not include derivatives, such as forward foreign currency contracts. The Fund is actively managed. As a result, the composition of the Fund’s investments is subject to change at any time.

Western Asset High Income Fund II Inc. 2023 Annual Report 7

Fund performance (unaudited)

Net Asset Value
Average annual total returns1
Twelve Months Ended 4/30/23	-9.18	%
Five Years Ended 4/30/23	0.01
Ten Years Ended 4/30/23	2.12
Cumulative total returns1
4/30/13 through 4/30/23	23.32	%

Market Price
Average annual total returns2
Twelve Months Ended 4/30/23	0.04	%
Five Years Ended 4/30/23	3.10
Ten Years Ended 4/30/23	2.03
Cumulative total returns2
4/30/13 through 4/30/23	22.20	%

All figures represent past performance and are not a guarantee of future results. Returns reflect the deduction of all Fund expenses, including management fees, operating expenses, and other Fund expenses. Returns do not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares.

¹  Assumes the reinvestment of all distributions, including returns of capital, if any, at net asset value.

²  Assumes the reinvestment of all distributions, including returns of capital, if any, in additional shares in accordance with the Fund’s Dividend Reinvestment Plan.

8 Western Asset High Income Fund II Inc. 2023 Annual Report

Historical performance

Value of  $10,000 invested in

Western Asset High Income Fund II Inc. vs. Benchmark Indices† — April 2013 - April 2023

All figures represent past performance and are not a guarantee of future results. Returns reflect the deduction of all Fund expenses, including management fees, operating expenses, and other Fund expenses. Returns do not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares.

^†  Hypothetical illustration of $10,000 invested in Western Asset High Income Fund II Inc. on April 30, 2013, assuming the reinvestment of all distributions, including returns of capital, if any, at net asset value and also assuming the reinvestment of all distributions, including returns of capital, if any, in additional shares in accordance with the Fund’s Dividend Reinvestment Plan through April 30, 2023. The hypothetical illustration also assumes a $10,000 investment in the Bloomberg U.S. Corporate High Yield — 2% Issuer Cap Index, the JPMorgan Emerging Markets Bond Index Global and the Composite Index (together, the “Indices”). The Bloomberg U.S. Corporate High Yield — 2% Issuer Cap Index is an index of the 2% Issuer Cap component of the Bloomberg U.S. Corporate High Yield Index, which covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market. The JPMorgan Emerging Markets Bond Index Global tracks total returns for U.S. dollar-denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans, Eurobonds and local market instruments. The Composite Index reflects the blended rate of return of the following underlying indices: 80% Bloomberg U.S. Corporate High Yield — 2% Issuer Cap Index and 20% JPMorgan Emerging Markets Bond Index Global. The Indices are unmanaged. Please note that an investor cannot invest directly in an index.

Western Asset High Income Fund II Inc. 2023 Annual Report 9

Schedule of investments

April 30, 2023

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†			Value
Corporate Bonds & Notes — 124.0%
Communication Services — 19.5%
Diversified Telecommunication Services — 6.6%
Altice Financing SA, Senior Secured Notes		5.000	%		1/15/28		1,000,000		$	810,727	(a)(b)
Altice Financing SA, Senior Secured Notes		5.750	%		8/15/29		7,490,000			5,981,164	(a)(b)
Altice France Holding SA, Senior Notes		6.000	%		2/15/28		940,000			579,821	(a)
Altice France Holding SA, Senior Secured Notes		10.500	%		5/15/27		7,280,000			5,383,297	(a)(b)
Telecom Italia Capital SA, Senior Notes		6.000	%		9/30/34		2,646,000			2,259,374	(b)
Telecom Italia Capital SA, Senior Notes		7.200	%		7/18/36		1,570,000			1,420,883
Telecom Italia Capital SA, Senior Notes		7.721	%		6/4/38		300,000			280,827
Telecom Italia SpA, Senior Notes		5.303	%		5/30/24		2,515,000			2,459,281	(a)(b)
Turk Telekomunikasyon AS, Senior Notes		4.875	%		6/19/24		1,500,000			1,428,825	(a)
Total Diversified Telecommunication Services										20,604,199
Interactive Media & Services — 0.2%
Match Group Holdings II LLC, Senior Notes		3.625	%		10/1/31		780,000			638,095	(a)
Media — 6.5%
CCO Holdings LLC/CCO Holdings Capital
Corp., Senior Notes		4.250	%		1/15/34		5,030,000			3,837,162	(a)(b)
Clear Channel Outdoor Holdings Inc., Senior Notes		7.750	%		4/15/28		1,410,000			1,071,473	(a)
DirecTV Financing LLC/DirecTV Financing Co-Obligor Inc., Senior Secured Notes		5.875	%		8/15/27		1,920,000			1,687,046	(a)
DISH DBS Corp., Senior Notes		5.125	%		6/1/29		7,720,000			3,567,869
TalkTalk Telecom Group Ltd., Senior Notes		3.875	%		2/20/25		1,500,000	GBP		1,453,823	(c)
United Group BV, Senior Secured Notes		5.250	%		2/1/30		1,550,000	EUR		1,285,162	(c)
UPC Holding BV, Senior Secured Notes		5.500	%		1/15/28		2,500,000			2,240,513	(a)
Virgin Media Finance PLC, Senior Notes		5.000	%		7/15/30		1,240,000			1,046,068	(a)
Virgin Media Vendor Financing Notes III
DAC, Senior Secured Notes		4.875	%		7/15/28		2,500,000	GBP		2,591,161	(a)
VZ Secured Financing BV, Senior Secured Notes		5.000	%		1/15/32		1,820,000			1,520,826	(a)
Total Media										20,301,103
Wireless Telecommunication Services — 6.2%
CSC Holdings LLC, Senior Notes		5.750	%		1/15/30		1,070,000			547,031	(a)
CSC Holdings LLC, Senior Notes		4.625	%		12/1/30		4,740,000			2,318,510	(a)
CSC Holdings LLC, Senior Notes		5.000	%		11/15/31		10,990,000			5,284,646	(a)
Millicom International Cellular SA, Senior Notes		4.500	%		4/27/31		1,000,000			774,855	(a)
Sprint Capital Corp., Senior Notes		6.875	%		11/15/28		2,200,000			2,373,760	(b)
Sprint Capital Corp., Senior Notes		8.750	%		3/15/32		5,170,000			6,324,026	(b)

See Notes to Financial Statements.

10 Western Asset High Income Fund II Inc. 2023 Annual Report

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†			Value
Wireless Telecommunication Services — continued
Sprint LLC, Senior Notes		7.875	%		9/15/23		110,000		$	110,990	(b)
Vmed O2 UK Financing I PLC, Senior Secured Notes		4.750	%		7/15/31		2,060,000			1,757,742	(a)(b)
Total Wireless Telecommunication Services										19,491,560
Total Communication Services										61,034,957
Consumer Discretionary — 28.0%
Automobile Components — 5.5%
Adient Global Holdings Ltd., Senior Notes		4.875	%		8/15/26		2,143,000			2,062,889	(a)(b)
American Axle & Manufacturing Inc., Senior Notes		6.500	%		4/1/27		5,801,000			5,384,372	(b)
American Axle & Manufacturing Inc., Senior Notes		5.000	%		10/1/29		1,170,000			972,574
JB Poindexter & Co. Inc., Senior Notes		7.125	%		4/15/26		6,910,000			6,676,753	(a)(b)
ZF North America Capital Inc., Senior Notes		6.875	%		4/14/28		950,000			978,581	(a)
ZF North America Capital Inc., Senior Notes		7.125	%		4/14/30		1,230,000			1,270,707	(a)
Total Automobile Components										17,345,876
Automobiles — 1.3%
Ford Motor Co., Senior Notes		3.250	%		2/12/32		2,000,000			1,552,833
Ford Motor Credit Co. LLC, Senior Notes		7.350	%		3/6/30		1,500,000			1,542,271
Ford Motor Credit Co. LLC, Senior Notes		3.625	%		6/17/31		1,110,000			916,394
Total Automobiles										4,011,498
Broadline Retail — 1.3%
Marks & Spencer PLC, Senior Notes		3.750	%		5/19/26		1,800,000	GBP		2,065,655	(c)
MercadoLibre Inc., Senior Notes		3.125	%		1/14/31		2,200,000			1,707,235
QVC Inc., Senior Secured Notes		5.450	%		8/15/34		392,000			168,993
Total Broadline Retail										3,941,883
Distributors — 0.7%
Ritchie Bros Holdings Inc., Senior Notes		7.750	%		3/15/31		2,100,000			2,233,875	(a)
Diversified Consumer Services — 3.7%
APCOA Parking Holdings GmbH, Senior Secured Notes		4.625	%		1/15/27		2,190,000	EUR		2,088,350	(c)
APCOA Parking Holdings GmbH, Senior Secured Notes		4.625	%		1/15/27		990,000	EUR		944,048	(a)
Carriage Services Inc., Senior Notes		4.250	%		5/15/29		1,100,000			912,734	(a)
Prime Security Services Borrower LLC/Prime Finance Inc., Secured Notes		6.250	%		1/15/28		1,500,000			1,406,401	(a)
Service Corp. International, Senior Notes		7.500	%		4/1/27		2,090,000			2,185,479

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2023 Annual Report 11

Schedule of investments (cont’d)

April 30, 2023

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†			Value
Diversified Consumer Services — continued
StoneMor Inc., Senior Secured Notes		8.500	%		5/15/29		4,170,000		$	3,448,450	(a)(b)
WW International Inc., Senior Secured Notes		4.500	%		4/15/29		770,000			492,107	(a)
Total Diversified Consumer Services										11,477,569
Hotels, Restaurants & Leisure — 14.8%
888 Acquisitions Ltd., Senior Secured Notes		7.558	%		7/15/27		2,460,000	EUR		2,459,259	(a)
888 Acquisitions Ltd., Senior Secured Notes		7.558	%		7/15/27		1,500,000	EUR		1,499,548	(c)
Carnival Holdings Bermuda Ltd., Senior Notes		10.375	%		5/1/28		50,000			53,805	(a)
Carnival PLC, Senior Notes		1.000	%		10/28/29		6,990,000	EUR		3,971,250
Carrols Restaurant Group Inc., Senior Notes		5.875	%		7/1/29		2,480,000			2,055,002	(a)
IRB Holding Corp., Senior Secured Notes		7.000	%		6/15/25		480,000			486,358	(a)
Las Vegas Sands Corp., Senior Notes		3.200	%		8/8/24		600,000			581,268
Las Vegas Sands Corp., Senior Notes		3.900	%		8/8/29		120,000			109,609
Melco Resorts Finance Ltd., Senior Notes		5.375	%		12/4/29		1,840,000			1,530,323	(a)
NCL Corp. Ltd., Senior Notes		3.625	%		12/15/24		4,815,000			4,519,658	(a)(b)
NCL Corp. Ltd., Senior Notes		5.875	%		3/15/26		2,370,000			2,044,001	(a)(b)
NCL Corp. Ltd., Senior Notes		7.750	%		2/15/29		3,120,000			2,644,638	(a)(b)
NCL Finance Ltd., Senior Notes		6.125	%		3/15/28		4,250,000			3,435,870	(a)(b)
Royal Caribbean Cruises Ltd., Senior Notes		5.375	%		7/15/27		4,720,000			4,195,000	(a)(b)
Royal Caribbean Cruises Ltd., Senior Notes		5.500	%		4/1/28		2,910,000			2,568,775	(a)(b)
Saga PLC, Senior Notes		3.375	%		5/12/24		1,580,000	GBP		1,796,034	(c)
Sands China Ltd., Senior Notes		3.350	%		3/8/29		4,280,000			3,608,076
Sands China Ltd., Senior Notes		4.875	%		6/18/30		1,280,000			1,165,873
Wheel Bidco Ltd., Senior Secured Notes		6.750	%		7/15/26		1,300,000	GBP		1,365,529	(a)
Wynn Macau Ltd., Senior Notes		5.500	%		1/15/26		590,000			546,730	(a)
Wynn Macau Ltd., Senior Notes		5.625	%		8/26/28		2,700,000			2,359,908	(a)
Wynn Macau Ltd., Senior Notes		5.125	%		12/15/29		1,300,000			1,080,293	(a)
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., Senior Notes		5.125	%		10/1/29		2,670,000			2,460,802	(a)
Total Hotels, Restaurants & Leisure										46,537,609
Specialty Retail — 0.7%
Michaels Cos. Inc., Senior Notes		7.875	%		5/1/29		3,460,000			2,322,560	(a)
Total Consumer Discretionary										87,870,870
Consumer Staples — 2.7%
Consumer Staples Distribution & Retail — 0.8%
Bellis Acquisition Co. PLC, Senior Secured Notes		3.250	%		2/16/26		2,420,000	GBP		2,505,299	(c)

See Notes to Financial Statements.

12 Western Asset High Income Fund II Inc. 2023 Annual Report

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†			Value
Food Products — 1.9%
Bellis Finco PLC, Senior Notes		4.000	%		2/16/27		1,500,000	GBP	$	1,293,827	(a)
FAGE International SA/FAGE USA Dairy Industry Inc., Senior Notes		5.625	%		8/15/26		2,500,000			2,337,500	(a)(b)
Pilgrim’s Pride Corp., Senior Notes		5.875	%		9/30/27		2,245,000			2,236,392	(a)(b)
Total Food Products										5,867,719
Total Consumer Staples										8,373,018
Energy — 19.8%
Energy Equipment & Services — 0.6%
Noble Finance II LLC, Senior Notes		8.000	%		4/15/30		910,000			932,905	(a)
Sunnova Energy Corp., Senior Notes		5.875	%		9/1/26		1,000,000			907,630	(a)(b)
Total Energy Equipment & Services										1,840,535
Oil, Gas & Consumable Fuels — 19.2%
Blue Racer Midstream LLC/Blue Racer Finance Corp., Senior Notes		7.625	%		12/15/25		190,000			190,788	(a)(b)
Continental Resources Inc., Senior Notes		3.800	%		6/1/24		330,000			323,797	(b)
Continental Resources Inc., Senior Notes		4.375	%		1/15/28		240,000			228,329	(b)
Continental Resources Inc., Senior Notes		4.900	%		6/1/44		1,320,000			1,029,260	(b)
Crescent Energy Finance LLC, Senior Notes		9.250	%		2/15/28		900,000			898,767	(a)
Ecopetrol SA, Senior Notes		5.875	%		5/28/45		4,100,000			2,680,231	(d)
Ecopetrol SA, Senior Notes		5.875	%		11/2/51		5,110,000			3,243,541
Energy Transfer LP, Junior Subordinated Notes (6.500% to 11/15/26 then 5 year Treasury Constant Maturity Rate + 5.694%)		6.500	%		11/15/26		2,670,000			2,369,625	(e)(f)
Energy Transfer LP, Junior Subordinated Notes (6.625% to 2/15/28 then 3 mo. USD LIBOR + 4.155%)		6.625	%		2/15/28		1,681,000			1,290,669	(e)(f)
EQM Midstream Partners LP, Senior Notes		4.500	%		1/15/29		1,960,000			1,668,227	(a)(b)
EQM Midstream Partners LP, Senior Notes		7.500	%		6/1/30		950,000			923,121	(a)
EQM Midstream Partners LP, Senior Notes		4.750	%		1/15/31		460,000			377,543	(a)
EQT Corp., Senior Notes		3.900	%		10/1/27		360,000			341,033	(b)
Howard Midstream Energy Partners LLC, Senior Notes		6.750	%		1/15/27		1,000,000			934,183	(a)(b)
Kinder Morgan Inc., Senior Notes		7.750	%		1/15/32		1,950,000			2,269,294	(b)
NGPL PipeCo LLC, Senior Notes		7.768	%		12/15/37		1,900,000			2,111,882	(a)(b)
Occidental Petroleum Corp., Senior Notes		6.950	%		7/1/24		464,000			472,719
Occidental Petroleum Corp., Senior Notes		2.900	%		8/15/24		1,640,000			1,591,800	(b)
Occidental Petroleum Corp., Senior Notes		5.875	%		9/1/25		1,190,000			1,203,824	(b)
Occidental Petroleum Corp., Senior Notes		5.550	%		3/15/26		980,000			989,467
Occidental Petroleum Corp., Senior Notes		6.200	%		3/15/40		1,330,000			1,367,297	(b)

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2023 Annual Report 13

Schedule of investments (cont’d)

April 30, 2023

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†		Value
Oil, Gas & Consumable Fuels — continued
Petrobras Global Finance BV, Senior Notes		6.750	%		1/27/41		6,620,000	$	6,339,340	(b)
Petroleos del Peru SA, Senior Notes		4.750	%		6/19/32		2,750,000		2,053,124	(a)
Petroleos del Peru SA, Senior Notes		5.625	%		6/19/47		1,000,000		635,199	(a)
Petroleos Mexicanos, Senior Notes		6.500	%		6/2/41		1,000,000		637,746
Petroleos Mexicanos, Senior Notes		5.500	%		6/27/44		2,970,000		1,694,402
Range Resources Corp., Senior Notes		4.875	%		5/15/25		1,009,000		996,821
Range Resources Corp., Senior Notes		8.250	%		1/15/29		710,000		741,772	(b)
Southwestern Energy Co., Senior Notes		4.750	%		2/1/32		1,000,000		883,165
Summit Midstream Holdings LLC/Summit Midstream Finance Corp., Secured Notes		8.500	%		10/15/26		1,630,000		1,566,772	(a)(b)
Transportadora de Gas del Sur SA, Senior Notes		6.750	%		5/2/25		1,560,000		1,363,159	(a)
Western Midstream Operating LP, Senior Notes		4.300	%		2/1/30		220,000		201,016
Western Midstream Operating LP, Senior Notes		5.300	%		3/1/48		1,540,000		1,301,696	(b)
Western Midstream Operating LP, Senior Notes		5.500	%		2/1/50		7,627,000		6,477,405	(b)
Williams Cos. Inc., Senior Notes		4.550	%		6/24/24		1,280,000		1,269,835	(b)
Williams Cos. Inc., Senior Notes		7.500	%		1/15/31		780,000		876,151	(b)
Williams Cos. Inc., Senior Notes		5.750	%		6/24/44		3,900,000		3,874,327	(b)
YPF SA, Senior Notes		8.500	%		7/28/25		1,520,000		1,267,806	(a)
YPF SA, Senior Notes		6.950	%		7/21/27		2,320,000		1,672,761	(a)
Total Oil, Gas & Consumable Fuels									60,357,894
Total Energy									62,198,429
Financials — 17.3%
Banks — 11.5%
Banco Mercantil del Norte SA, Junior Subordinated Notes (6.625% to 1/24/32 then 10 year Treasury Constant Maturity Rate + 5.034%)		6.625	%		1/24/32		7,490,000		6,074,390	(a)(b)(e)(f)
Barclays PLC, Junior Subordinated Notes (7.750% to 9/15/23 then USD 5 year ICE Swap Rate + 4.842%)		7.750	%		9/15/23		2,080,000		1,962,522	(b)(e)(f)
Barclays PLC, Junior Subordinated Notes (8.000% to 6/15/24 then 5 year Treasury Constant Maturity Rate + 5.672%)		8.000	%		6/15/24		2,850,000		2,635,965	(b)(e)(f)
BBVA Bancomer SA, Subordinated Notes (5.125% to 1/17/28 then 5 year Treasury Constant Maturity Rate + 2.650%)		5.125	%		1/18/33		830,000		733,218	(a)(f)

See Notes to Financial Statements.

14 Western Asset High Income Fund II Inc. 2023 Annual Report

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†		Value
Banks — continued
BNP Paribas SA, Junior Subordinated Notes (7.750% to 8/16/29 then 5 year Treasury Constant Maturity Rate + 4.899%)		7.750	%		8/16/29		4,320,000	$	4,136,400	(a)(b)(e)(f)
Credit Agricole SA, Junior Subordinated Notes (8.125% to 12/23/25 then USD 5 year ICE Swap Rate + 6.185%)		8.125	%		12/23/25		2,510,000		2,498,457	(a)(b)(e)(f)
HSBC Holdings PLC, Subordinated Notes (8.113% to 11/3/32 then SOFR + 4.250%)		8.113	%		11/3/33		1,730,000		1,954,374	(f)
Intesa Sanpaolo SpA, Subordinated Notes		5.017	%		6/26/24		2,180,000		2,118,606	(a)(b)
Intesa Sanpaolo SpA, Subordinated Notes		5.710	%		1/15/26		3,050,000		2,938,812	(a)(b)
Intesa Sanpaolo SpA, Subordinated Notes (4.198% to 6/1/31 then 1 year Treasury Constant Maturity Rate + 2.600%)		4.198	%		6/1/32		1,950,000		1,479,815	(a)(f)
Lloyds Banking Group PLC, Junior Subordinated Notes (7.500% to 9/27/25 then USD 5 year ICE Swap Rate + 4.496%)		7.500	%		9/27/25		3,820,000		3,631,254	(b)(e)(f)
TC Ziraat Bankasi AS, Senior Notes		5.125	%		9/29/23		2,530,000		2,514,744	(a)
UniCredit SpA, Subordinated Notes (7.296% to 4/2/29 then USD 5 year ICE Swap Rate + 4.914%)		7.296	%		4/2/34		3,390,000		3,247,276	(a)(b)(f)
Total Banks									35,925,833
Capital Markets — 1.2%
Credit Suisse Group AG, Junior Subordinated Notes (6.375% to 8/21/26 then 5 year Treasury Constant Maturity Rate + 4.822%)		6.375	%		8/21/26		3,490,000		157,050	*(a)(e)(g)
Credit Suisse Group AG, Junior Subordinated Notes (7.250% to 9/12/25 then USD 5 year ICE Swap Rate + 4.332%)		7.250	%		9/12/25		2,660,000		119,700	*(a)(e)(g)
Credit Suisse Group AG, Junior Subordinated Notes (9.750% to 12/23/27 then 5 year Treasury Constant Maturity Rate + 6.383%)		9.750	%		6/23/27		8,630,000		388,350	*(a)(e)(g)
UBS Group AG, Junior Subordinated Notes (6.875% to 8/7/25 then USD 5 year ICE Swap Rate + 4.590%)		6.875	%		8/7/25		1,000,000		906,250	(c)(e)(f)
UBS Group AG, Junior Subordinated Notes (7.000% to 1/31/24 then USD 5 year ICE Swap Rate + 4.344%)		7.000	%		1/31/24		2,500,000		2,350,000	(a)(b)(e)(f)
Total Capital Markets									3,921,350

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2023 Annual Report 15

Schedule of investments (cont’d)

April 30, 2023

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†			Value
Consumer Finance — 1.0%
Navient Corp., Senior Notes		5.875	%		10/25/24		1,170,000		$	1,151,403	(b)
Navient Corp., Senior Notes		6.750	%		6/15/26		1,990,000			1,940,669	(b)
Total Consumer Finance										3,092,072
Financial Services — 3.2%
Global Aircraft Leasing Co. Ltd., Senior Notes (6.500% Cash or 7.250% PIK)		6.500	%		9/15/24		9,020,000			8,063,068	(a)(h)
Huarong Finance 2017 Co. Ltd., Senior Notes (3 mo. USD LIBOR + 1.325%)		6.502	%		7/3/23		880,000			880,230	(c)(f)
Huarong Finance 2019 Co. Ltd., Senior Notes		2.125	%		9/30/23		690,000			674,162	(c)
Huarong Finance II Co. Ltd., Senior Notes		4.875	%		11/22/26		450,000			398,812	(c)
Total Financial Services										10,016,272
Insurance — 0.4%
MetLife Capital Trust IV, Junior Subordinated Notes		7.875	%		12/15/37		1,100,000			1,163,053	(a)(b)
Total Financials										54,118,580
Health Care — 8.6%
Health Care Providers & Services — 3.5%
CHS/Community Health Systems Inc., Senior Secured Notes		4.750	%		2/15/31		1,190,000			961,090	(a)
HCA Inc., Senior Notes		7.500	%		11/15/95		2,205,000			2,522,398	(b)
Legacy LifePoint Health LLC, Senior Secured Notes		4.375	%		2/15/27		2,200,000			1,874,939	(a)(b)
Tenet Healthcare Corp., Secured Notes		6.250	%		2/1/27		2,430,000			2,421,223	(b)
Tenet Healthcare Corp., Senior Notes		6.125	%		10/1/28		890,000			864,553	(b)
Tenet Healthcare Corp., Senior Notes		6.875	%		11/15/31		2,500,000			2,452,288
Total Health Care Providers & Services										11,096,491
Pharmaceuticals — 5.1%
Bausch Health Cos. Inc., Senior Notes		5.250	%		1/30/30		1,390,000			654,905	(a)
Bausch Health Cos. Inc., Senior Secured Notes		4.875	%		6/1/28		4,180,000			2,757,797	(a)
Cidron Aida Finco Sarl, Senior Secured Notes		5.000	%		4/1/28		1,651,000	EUR		1,632,892	(a)
Par Pharmaceutical Inc., Senior Secured Notes		7.500	%		4/1/27		1,050,000			745,537	*(a)(g)
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes		6.000	%		4/15/24		1,160,000			1,158,758	(b)

See Notes to Financial Statements.

16 Western Asset High Income Fund II Inc. 2023 Annual Report

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†		Value
Pharmaceuticals — continued
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes		3.150	%		10/1/26		2,500,000	$	2,261,504	(b)
Teva Pharmaceutical Finance Netherlands III BV, Senior Notes		5.125	%		5/9/29		7,300,000		6,780,428	(b)
Total Pharmaceuticals									15,991,821
Total Health Care									27,088,312
Industrials — 13.9%
Aerospace & Defense — 0.4%
Bombardier Inc., Senior Notes		7.500	%		2/1/29		1,320,000		1,299,713	(a)
Building Products — 0.1%
Standard Industries Inc., Senior Notes		4.375	%		7/15/30		540,000		466,767	(a)
Commercial Services & Supplies — 3.1%
CoreCivic Inc., Senior Notes		8.250	%		4/15/26		2,890,000		2,922,802	(b)
CoreCivic Inc., Senior Notes		4.750	%		10/15/27		5,650,000		4,902,931	(b)
GEO Group Inc., Secured Notes		10.500	%		6/30/28		1,831,000		1,853,466
Total Commercial Services & Supplies									9,679,199
Machinery — 0.5%
Titan International Inc., Senior Secured Notes		7.000	%		4/30/28		1,661,000		1,486,595
Passenger Airlines — 9.0%
American Airlines Group Inc., Senior Notes		3.750	%		3/1/25		7,130,000		6,722,951	(a)(b)
American Airlines Inc., Senior Secured Notes		7.250	%		2/15/28		1,240,000		1,207,181	(a)
American Airlines Inc./AAdvantage Loyalty IP Ltd., Senior Secured Notes		5.500	%		4/20/26		540,000		530,898	(a)
American Airlines Inc./AAdvantage Loyalty IP Ltd., Senior Secured Notes		5.750	%		4/20/29		1,000,000		951,575	(a)(b)
Delta Air Lines Inc., Senior Notes		2.900	%		10/28/24		1,070,000		1,033,296	(b)
Delta Air Lines Inc., Senior Notes		7.375	%		1/15/26		880,000		928,540	(b)
Delta Air Lines Inc., Senior Secured Notes		7.000	%		5/1/25		7,670,000		7,915,416	(a)(d)
Hawaiian Brand Intellectual Property Ltd./ HawaiianMiles Loyalty Ltd., Senior Secured Notes		5.750	%		1/20/26		2,300,000		2,144,908	(a)(b)
Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., Senior Secured Notes		6.500	%		6/20/27		136,000		135,946	(a)
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., Senior Secured Notes		8.000	%		9/20/25		2,237,998		2,260,790	(a)(b)
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., Senior Secured Notes		8.000	%		9/20/25		720,000		727,858	(a)

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2023 Annual Report 17

Schedule of investments (cont’d)

April 30, 2023

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†			Value
Passenger Airlines — continued
United Airlines Holdings Inc., Senior Notes		5.000	%		2/1/24		980,000		$	972,996	(b)
United Airlines Inc., Senior Secured Notes		4.375	%		4/15/26		3,000,000			2,868,672	(a)(b)
Total Passenger Airlines										28,401,027
Trading Companies & Distributors — 0.4%
H&E Equipment Services Inc., Senior Notes		3.875	%		12/15/28		1,020,000			884,988	(a)(b)
United Rentals North America Inc., Senior Notes		5.500	%		5/15/27		302,000			300,535
Total Trading Companies & Distributors										1,185,523
Transportation Infrastructure — 0.4%
Gatwick Airport Finance PLC, Senior Secured Notes		4.375	%		4/7/26		1,000,000	GBP		1,165,568	(c)
Total Industrials										43,684,392
Information Technology — 1.7%
Communications Equipment — 0.7%
CommScope Inc., Senior Notes		8.250	%		3/1/27		890,000			688,986	(a)
CommScope Inc., Senior Notes		7.125	%		7/1/28		2,298,000			1,651,401	(a)(b)
Total Communications Equipment										2,340,387
Technology Hardware, Storage & Peripherals — 1.0%
Seagate HDD Cayman, Senior Notes		4.750	%		6/1/23		1,700,000			1,699,578	(b)
Seagate HDD Cayman, Senior Notes		4.750	%		1/1/25		850,000			827,556	(b)
Seagate HDD Cayman, Senior Notes		4.875	%		6/1/27		495,000			474,539
Total Technology Hardware, Storage & Peripherals										3,001,673
Total Information Technology										5,342,060
Materials — 7.1%
Chemicals — 1.2%
Braskem America Finance Co., Senior Notes		7.125	%		7/22/41		700,000			643,680	(b)(c)
INEOS Quattro Finance 1 PLC, Senior Notes		3.750	%		7/15/26		1,500,000	EUR		1,456,654	(c)
Sasol Financing USA LLC, Senior Notes		8.750	%		5/3/29		1,690,000			1,696,785	(a)(i)
Total Chemicals										3,797,119
Containers & Packaging — 2.6%
ARD Finance SA, Senior Secured Notes (6.500% Cash or 7.250% PIK)		6.500	%		6/30/27		1,000,000			820,686	(a)(h)
Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc., Senior Notes		5.250	%		8/15/27		4,470,000			3,827,926	(a)(b)
Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc., Senior Notes		5.250	%		8/15/27		2,610,000			2,235,098	(a)(b)
Pactiv LLC, Senior Notes		8.375	%		4/15/27		1,320,000			1,301,405
Total Containers & Packaging										8,185,115

See Notes to Financial Statements.

18 Western Asset High Income Fund II Inc. 2023 Annual Report

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†			Value
Metals & Mining — 3.3%
ArcelorMittal SA, Senior Notes		7.000	%		10/15/39		3,200,000		$	3,371,355	(b)
Freeport-McMoRan Inc., Senior Notes		5.450	%		3/15/43		3,870,000			3,638,645	(d)
Vale Overseas Ltd., Senior Notes		6.875	%		11/21/36		2,960,000			3,100,399	(d)
Total Metals & Mining										10,110,399
Total Materials										22,092,633
Real Estate — 3.5%
Health Care REITs — 0.1%
Diversified Healthcare Trust, Senior Notes		4.375	%		3/1/31		430,000			271,302
Hotel & Resort REITs — 1.5%
Service Properties Trust, Senior Notes		5.500	%		12/15/27		2,880,000			2,521,185	(b)
Service Properties Trust, Senior Notes		4.950	%		10/1/29		1,630,000			1,236,988	(b)
Service Properties Trust, Senior Notes		4.375	%		2/15/30		1,310,000			976,232
Total Hotel & Resort REITs										4,734,405
Real Estate Management & Development — 1.9%
China Aoyuan Group Ltd., Senior Secured Notes		—			2/19/23		630,000			43,848	*(c)(j)
China Aoyuan Group Ltd., Senior Secured Notes		7.950	%		6/21/24		1,000,000			70,091	*(c)(g)
Country Garden Holdings Co. Ltd., Senior Secured Notes		8.000	%		1/27/24		1,450,000			1,186,041	(c)
Heimstaden AB, Senior Notes		4.250	%		3/9/26		1,900,000	EUR		1,393,426	(c)
Samhallsbyggnadsbolaget i Norden AB, Senior Notes		1.750	%		1/14/25		1,420,000	EUR		1,380,255	(c)
Samhallsbyggnadsbolaget i Norden AB, Senior Notes		1.125	%		9/4/26		2,200,000	EUR		1,765,945	(c)
Times China Holdings Ltd., Senior Secured Notes		6.750	%		7/8/25		870,000			114,631	*(c)
Yuzhou Group Holdings Co. Ltd., Senior Secured Notes		6.000	%		10/25/23		500,000			35,655	*(c)(g)
Yuzhou Group Holdings Co. Ltd., Senior Secured Notes		8.500	%		2/26/24		500,000			36,970	*(c)(g)
Yuzhou Group Holdings Co. Ltd., Senior Secured Notes		8.375	%		10/30/24		1,100,000			78,577	*(c)(g)
Total Real Estate Management & Development										6,105,439
Total Real Estate										11,111,146
Utilities — 1.9%
Electric Utilities — 0.8%
Eskom Holdings SOC Ltd.		4.314	%		7/23/27		1,210,000			1,074,371	(c)

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2023 Annual Report 19

Schedule of investments (cont’d)

April 30, 2023

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†		Value
Electric Utilities — continued
Pampa Energia SA, Senior Notes		7.500	%		1/24/27		450,000	$	392,015	(a)
Perusahaan Perseroan Persero PT Perusahaan Listrik Negara, Senior Notes		6.150	%		5/21/48		1,000,000		976,084	(a)
Total Electric Utilities									2,442,470
Gas Utilities — 1.1%
Suburban Propane Partners LP/Suburban Energy Finance Corp., Senior Notes		5.875	%		3/1/27		3,500,000		3,416,661	(b)
Total Utilities									5,859,131
Total Corporate Bonds & Notes (Cost — $383,222,159)									388,773,528
Sovereign Bonds — 9.5%
Angola — 0.6%
Angolan Government International Bond, Senior Notes		8.000	%		11/26/29		2,200,000		1,859,418	(a)
Argentina — 1.6%
Argentine Republic Government International Bond, Senior Notes, Step bond (1.500% to 7/9/23 then 3.625%)		1.500	%		7/9/35		328,141		73,414
Provincia de Buenos Aires, Senior Notes, Step bond (5.250% to 9/1/23, 6.375% to 9/1/24 then 6.625%)		5.250	%		9/1/37		4,141,974		1,296,735	(a)
Provincia de Cordoba, Senior Notes		6.875	%		12/10/25		300,000		249,844	(a)
Provincia de Cordoba, Senior Notes		6.990	%		6/1/27		2,620,000		1,858,453	(a)
Provincia de Cordoba, Senior Notes (6.875% PIK)		6.875	%		2/1/29		2,550,000		1,641,607	(a)(h)
Total Argentina									5,120,053
Bahamas — 0.8%
Bahamas Government International Bond, Senior Notes		9.000	%		6/16/29		2,060,000		1,779,840	(a)
Bahamas Government International Bond, Senior Notes		6.950	%		11/20/29		1,030,000		787,950	(a)
Total Bahamas									2,567,790
Costa Rica — 0.1%
Costa Rica Government International Bond, Senior Notes		7.158	%		3/12/45		460,000		459,200	(a)
Dominican Republic — 0.9%
Dominican Republic International Bond, Senior Notes		4.500	%		1/30/30		3,330,000		2,955,942	(a)

See Notes to Financial Statements.

20 Western Asset High Income Fund II Inc. 2023 Annual Report

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†			Value
Ecuador — 0.1%
Ecuador Government International Bond, Senior Notes, Step bond (1.500% to 7/31/23 then 2.500%)		1.500	%		7/31/40		540,000		$	178,200	(a)
Egypt — 0.4%
Egypt Government International Bond, Senior Notes		7.625	%		5/29/32		2,038,000			1,149,538	(c)
Guatemala — 0.2%
Guatemala Government Bond, Senior Notes		5.375	%		4/24/32		500,000			488,496	(a)
Ivory Coast — 0.3%
Ivory Coast Government International Bond, Senior Notes		6.125	%		6/15/33		1,000,000			848,044	(a)
Jordan — 0.7%
Jordan Government International Bond, Senior Notes		5.850	%		7/7/30		2,540,000			2,290,648	(a)
Mexico — 2.4%
Mexican Bonos, Bonds		5.000	%		3/6/25		100,000,000	MXN		5,064,435
Mexico Government International Bond, Senior Notes		2.659	%		5/24/31		3,000,000			2,540,000
Total Mexico										7,604,435
Nigeria — 0.3%
Nigeria Government International Bond, Senior Notes		7.875	%		2/16/32		1,130,000			839,861	(c)
Oman — 0.3%
Oman Government International Bond, Senior Notes		5.625	%		1/17/28		800,000			808,504	(a)
Russia — 0.1%
Russian Federal Bond — OFZ		7.050	%		1/19/28		239,980,000	RUB		150,034	*(g)(k)
Russian Federal Bond — OFZ		6.900	%		5/23/29		176,840,000	RUB		110,560	*(g)(k)
Total Russia										260,594
Turkey — 0.7%
Turkey Government International Bond, Senior Notes		5.125	%		2/17/28		2,400,000			2,096,280
Ukraine — 0.0%††
Ukraine Government International Bond, Senior Notes		7.375	%		9/25/34		800,000			132,000	(a)
Total Sovereign Bonds (Cost — $33,987,313)										29,659,003
Convertible Bonds & Notes — 1.9%
Communication Services — 1.9%
Media — 1.9%
DISH Network Corp., Senior Notes		2.375	%		3/15/24		2,527,000			2,195,331

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2023 Annual Report 21

Schedule of investments (cont’d)

April 30, 2023

Western Asset High Income Fund II Inc.

(Percentages shown based on Fund net assets)

Security	Rate			Maturity Date		Face Amount†		Value
Media — continued
DISH Network Corp., Senior Notes		0.000	%		12/15/25		1,923,000	$	947,370
DISH Network Corp., Senior Notes		3.375	%		8/15/26		5,900,000		2,808,400
Total Convertible Bonds & Notes (Cost — $7,354,201)									5,951,101
U.S. Government & Agency Obligations — 1.6%
U.S. Government Obligations — 1.6%
U.S. Treasury Notes (Cost — $5,084,829)		4.125	%		1/31/25		5,110,000		5,102,515
Senior Loans — 0.5%
Consumer Discretionary — 0.5%
Diversified Consumer Services — 0.5%
WW International Inc., Initial Term Loan (1 mo. USD LIBOR + 3.500%) (Cost — $1,767,078)		8.530	%		4/13/28		2,250,000		1,544,062	(f)(l)(m)
				Expiration Date		Warrants
Warrants — 0.0%††
Financials — 0.0%††
Capital Markets — 0.0%††
EG Acquisition Corp., Class A Shares (Cost — $23,550)					5/28/28		24,596		4,883	*
						Shares
Common Stocks — 0.0%††
Energy — 0.0%††
Energy Equipment & Services — 0.0%††
KCAD Holdings I Ltd. (Cost — $4,365,221)							533,873,172		0	*(k)(n)(o)
Total Investments before Short-Term Investments (Cost — $435,804,351)									431,035,092
	Rate
Short-Term Investments — 0.4%
Western Asset Premier Institutional Government Reserves, Premium Shares (Cost — $1,277,532)		4.808	%				1,277,532		1,277,532	(p)(q)
Total Investments — 137.9% (Cost — $437,081,883)									432,312,624
Liabilities in Excess of Other Assets — (37.9)%									(118,709,992)
Total Net Assets — 100.0%								$	313,602,632

See Notes to Financial Statements.

22 Western Asset High Income Fund II Inc. 2023 Annual Report

Western Asset High Income Fund II Inc.

† Face amount denominated in U.S. dollars, unless otherwise noted.

†† Represents less than 0.1%.

* Non-income producing security.

^(a)  Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors.

^(b)  All or a portion of this security is pledged as collateral pursuant to the loan agreement (Note 5).

^(c)  Security is exempt from registration under Regulation S of the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors.

^(d)  All or a portion of this security is held by the counterparty as collateral for open reverse repurchase agreements.

^(e)  Security has no maturity date. The date shown represents the next call date.

^(f)  Variable rate security. Interest rate disclosed is as of the most recent information available. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above.

^(g)  The coupon payment on this security is currently in default as of April 30, 2023.

^(h)  Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional securities.

⁽ⁱ⁾  Securities traded on a when-issued or delayed delivery basis.

^(j)  The maturity principal is currently in default as of April 30, 2023.

^(k)  Security is valued using significant unobservable inputs (Note 1).

^(l)  Interest rates disclosed represent the effective rates on senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan.

^(m)  Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan.

⁽ⁿ⁾  Security is valued in good faith in accordance with procedures approved by the Board of Directors (Note 1).

^(o)  Value is less than $1.

^(p)  Rate shown is one-day yield as of the end of the reporting period.

^(q)  In this instance, as defined in the Investment Company Act of 1940, an “Affiliated Company” represents Fund ownership of at least 5% of the outstanding voting securities of an issuer, or a company which is under common ownership or control with the Fund. At April 30, 2023, the total market value of investments in Affiliated Companies was $1,277,532 and the cost was $1,277,532 (Note 9).

Abbreviation(s) used in this schedule:
EUR	— Euro
GBP	— British Pound
ICE	— Intercontinental Exchange
LIBOR	— London Interbank Offered Rate
MXN	— Mexican Peso
OFZ	— Obligatsyi Federal’novo Zaima (Russian Federal Loan Obligation)
PIK	— Payment-In-Kind
RUB	— Russian Ruble
SOFR	— Secured Overnight Financing Rate
USD	— United States Dollar

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2023 Annual Report 23

Schedule of investments (cont’d)

April 30, 2023

Western Asset High Income Fund II Inc.

At April 30, 2023, the Fund had the following open reverse repurchase agreements:

Counterparty	Rate			Effective Date		Maturity Date	Face Amount of Reverse Repurchase Agreements		Asset Class of Collateral*		Collateral Value**
Goldman Sachs Group Inc.		5.500	%		3/24/2023	TBD***	$	5,165,930		Corporate Bonds & Notes	$	4,884,431
										Cash		341,027
Goldman Sachs Group Inc.		5.500	%		4/20/2023	5/26/2023		3,197,722		Corporate Bonds & Notes		3,665,596
										Cash		211,097
Goldman Sachs Group Inc.		5.510	%		4/27/2023	5/26/2023		7,723,686		Corporate Bonds & Notes		8,183,865
										Cash		509,876
							$	16,087,338			$	17,795,892

* Refer to the Schedule of Investments for positions held at the counterparty as collateral for reverse repurchase agreements.

** Including accrued interest.

*** TBD — To Be Determined; These reverse repurchase agreements have no maturity dates because they are renewed daily and can be terminated by either the Fund or the counterparty in accordance with the terms of the agreements. The rates for these agreements are variable. The rate disclosed is the rate as of April 30, 2023.

At April 30, 2023, the Fund had the following open forward foreign currency contracts:

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	19,171,905	EUR	17,478,055	Bank of America N.A.		7/18/23	$	(174,926)
CAD	12,453	USD	9,260	BNP Paribas SA		7/18/23		(54)
MXN	10,726,377	USD	580,683	Morgan Stanley & Co. Inc.		7/18/23		6,122
USD	13,359,747	GBP	10,713,080	Morgan Stanley & Co. Inc.		7/18/23		(125,096)
Net unrealized depreciation on open forward foreign currency contracts							$	(293,954)

Abbreviation(s) used in this table:
CAD	— Canadian Dollar
EUR	— Euro
GBP	— British Pound
MXN	— Mexican Peso
USD	— United States Dollar

See Notes to Financial Statements.

24 Western Asset High Income Fund II Inc. 2023 Annual Report

Statement of assets and liabilities

April 30, 2023

Assets:
Investments in unaffiliated securities, at value (Cost — $435,804,351)	$	431,035,092
Investments in affiliated securities, at value (Cost — $1,277,532)		1,277,532
Foreign currency, at value (Cost — $349,003)		335,724
Cash		2,273,546
Interest receivable		7,573,711
Receivable for securities sold		2,782,765
Deposits with brokers for open reverse repurchase agreements		1,062,000
Receivable for Fund shares sold		22,166
Dividends receivable from affiliated investments		7,580
Unrealized appreciation on forward foreign currency contracts		6,122
Deposits with brokers for futures contracts		1,020
Prepaid expenses		304,950
Total Assets		446,682,208
Liabilities:
Loan payable (Note 5)		106,000,000
Payable for open reverse repurchase agreements (Note 3)		16,087,338
Payable for securities purchased		6,370,127
Distributions payable		3,239,786
Interest expense payable		547,451
Unrealized depreciation on forward foreign currency contracts		300,076
Investment management fee payable		285,555
Directors’ fees payable		4,706
Accrued expenses		244,537
Total Liabilities		133,079,576
Total Net Assets	$	313,602,632
Net Assets:
Par value ($0.001 par value; 66,144,382 shares issued and outstanding; 100,000,000 shares authorized)	$	66,144
Paid-in capital in excess of par value		582,287,917
Total distributable earnings (loss)		(268,751,429)
Total Net Assets	$	313,602,632
Shares Outstanding		66,144,382
Net Asset Value		$4.74

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2023 Annual Report 25

Statement of operations

For the Year Ended April 30, 2023

Investment Income:
Interest	$	43,276,121
Dividends from affiliated investments		85,468
Less: Foreign taxes withheld		(14,208)
Total Investment Income		43,347,381
Expenses:
Interest expense (Notes 3 and 5)		6,120,790
Investment management fee (Note 2)		4,008,122
Transfer agent fees		202,177
Legal fees		167,600
Directors’ fees		119,006
Commitment fees (Note 5)		90,351
Audit and tax fees		77,668
Shareholder reports		54,379
Stock exchange listing fees		30,347
Fund accounting fees		12,604
Custody fees		10,153
Insurance		3,297
Miscellaneous expenses		13,769
Total Expenses		10,910,263
Less: Fee waivers and/or expense reimbursements (Note 2)		(2,630)
Net Expenses		10,907,633
Net Investment Income		32,439,748
Realized and Unrealized Gain (Loss) on Investments, Futures Contracts, Forward Foreign Currency Contracts and Foreign Currency Transactions (Notes 1, 3 and 4):
Net Realized Gain (Loss) From:
Investment transactions in unaffiliated securities		(53,568,281)
Futures contracts		59,566
Forward foreign currency contracts		(904,602)
Foreign currency transactions		(56,435)
Net Realized Loss		(54,469,752)
Change in Net Unrealized Appreciation (Depreciation) From:
Investments in unaffiliated securities		(7,955,408)
Forward foreign currency contracts		(546,815)
Foreign currencies		18,148
Change in Net Unrealized Appreciation (Depreciation)		(8,484,075)
Net Loss on Investments, Futures Contracts, Forward Foreign Currency Contracts and Foreign Currency Transactions		(62,953,827)
Decrease in Net Assets From Operations	$	(30,514,079)

See Notes to Financial Statements.

26 Western Asset High Income Fund II Inc. 2023 Annual Report

Statements of changes in net assets

For the Years Ended April 30,	2023			2022
Operations:
Net investment income	$	32,439,748		$	31,812,263
Net realized loss		(54,469,752)			(1,164,451)
Change in net unrealized appreciation (depreciation)		(8,484,075)			(71,764,285)
Decrease in Net Assets From Operations		(30,514,079)			(41,116,473)
Distributions to Shareholders From (Note 1):
Total distributable earnings		(31,102,535)			(31,284,412)
Return of capital		(7,251,074)			(3,301,743)
Decrease in Net Assets From Distributions to Shareholders		(38,353,609)			(34,586,155)
Fund Share Transactions:
Net proceeds from sale of shares from shelf registration (963,737 and 0 shares issued, respectively)		5,094,561	†		—
Net proceeds from sale of shares from rights offering (6,001,836 and 0 shares issued, respectively)		30,667,643	‡		—
Reinvestment of distributions (254,223 and 262,774 shares issued, respectively)		1,302,617			1,834,300
Increase in Net Assets From Fund Share Transactions		37,064,821			1,834,300
Decrease in Net Assets		(31,802,867)			(73,868,328)
Net Assets:
Beginning of year		345,405,499			419,273,827
End of year	$	313,602,632		$	345,405,499

† Net of sales charges of $51,752 and net of shelf registration offering costs of $33,213 (Note 8).

‡ Net of rights offering costs of $361,849 (Note 8).

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2023 Annual Report 27

Statement of cash flows

For the Year Ended April 30, 2023

Increase (Decrease) in Cash:
Cash Flows from Operating Activities:
Net decrease in net assets resulting from operations	$	(30,514,079)
Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided (used) by operating activities:
Purchases of portfolio securities		(595,845,058)
Sales of portfolio securities		622,913,790
Net purchases, sales and maturities of short-term investments		5,747,792
Net amortization of premium (accretion of discount)		(11,493,202)
Decrease in receivable for securities sold		11,107,338
Decrease in interest receivable		141,272
Increase in prepaid expenses		(237,081)
Increase in dividends receivable from affiliated investments		(7,082)
Decrease in payable for securities purchased		(5,811,995)
Decrease in investment management fee payable		(68,916)
Decrease in Directors’ fees payable		(22)
Increase in interest expense payable		364,598
Increase in accrued expenses		123,969
Net realized loss on investments		53,568,281
Change in net unrealized appreciation (depreciation) of investments and forward foreign currency contracts		8,502,223
Net Cash Provided in Operating Activities*		58,491,828
Cash Flows from Financing Activities:
Distributions paid on common stock (net of distributions payable)		(36,698,511)
Proceeds from loan facility borrowings		142,000,000
Repayment of loan facility borrowings		(190,500,000)
Decrease in payable for open reverse repurchase agreements		(8,784,345)
Net proceeds from sale of shares (net of receivable for Fund shares sold)		(22,166)
Net proceeds from sale of shares from shelf registration		5,094,561
Net proceeds from sale of shares from rights offering		30,667,643
Net Cash Used by Financing Activities		(58,242,818)
Net Increase in Cash and Restricted Cash		249,010
Cash and restricted cash at beginning of year		3,423,280
Cash and restricted cash at end of year	$	3,672,290

* Included in operating expenses is $5,831,817 paid for interest and commitment fees on borrowings.

See Notes to Financial Statements.

28 Western Asset High Income Fund II Inc. 2023 Annual Report

  The following table provides a reconciliation of cash (including foreign currency) and restricted cash reported within the Statement of Assets and Liabilities that sums to the total of such amounts shown on the Statement of Cash Flows.

	April 30, 2023
Cash	$	2,609,270
Restricted cash		1,063,020
Total cash and restricted cash shown in the Statement of Cash Flows	$	3,672,290

  Restricted cash consists of cash that has been segregated to cover the Fund’s collateral or margin obligations under derivative contracts and for reverse repurchase agreements. It is separately reported on the Statement of Assets and Liabilities as Deposits with brokers.

Non-Cash Financing Activities:
Proceeds from reinvestment of distributions	$	1,302,617

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2023 Annual Report 29

Financial highlights

For a share of capital stock outstanding throughout each year ended April 30:
	20231			20221			20211			20201			20191
Net asset value, beginning of year		$5.86			$7.15			$6.19			$7.31			$7.39
Income (loss) from operations:
Net investment income		0.50			0.54			0.51			0.55			0.52
Net realized and unrealized gain (loss)		(0.98)			(1.24)			1.03			(1.11)			(0.06)
Total income (loss) from operations		(0.48)			(0.70)			1.54			(0.56)			0.46
Less distributions from:
Net investment income		(0.48)			(0.53)			(0.46)			(0.48)			(0.50)
Return of capital		(0.11)			(0.06)			(0.13)			(0.09)			(0.05)
Total distributions		(0.59)			(0.59)			(0.59)			(0.57)			(0.55)
Anti-dilutive impact of repurchase plan		—			—			—			0.01	2		0.01	2
Dilutive impact of rights offering		(0.05)	3		—			—			—			—
Anti-dilutive impact of tender offer		—			—			0.01	4		—			—
Net asset value, end of year		$4.74			$5.86			$7.15			$6.19			$7.31
Market price, end of year		$4.79			$5.38			$7.09			$5.51			$6.69
Total return, based on NAV5,6		(9.18)	%		(10.66)	%		25.68	%		(8.11)	%		6.77	%
Total return, based on Market Price7		0.04	%		(17.20)	%		40.48	%		(10.02)	%		11.29	%
Net assets, end of year (millions)		$314			$345			$419			$521			$622
Ratios to average net assets:
Gross expenses		3.26	%		1.66	%		1.59	%		2.57	%8		2.47	%
Net expenses9,10		3.26			1.66			1.59			2.55	8		2.45
Net investment income		9.70			7.87			7.37			7.76			7.31
Portfolio turnover rate		123	%		55	%		50	%		66	%		105	%
Supplemental data:
Loan Outstanding, End of Year (000s)		$106,000			$154,500			$158,000			$208,000			$246,500
Asset Coverage Ratio for Loan Outstanding11		396	%		324	%		365	%		351	%		352	%
Asset Coverage, per $1,000 Principal Amount of Loan Outstanding11		$3,959			$3,236			$3,654			$3,506			$3,524
Weighted Average Loan (000s)		$136,284			$155,075			$178,800			$241,971			$242,889
Weighted Average Interest Rate on Loan		3.77	%		0.89	%		0.86	%		2.58	%		3.08	%

See Notes to Financial Statements.

30 Western Asset High Income Fund II Inc. 2023 Annual Report

¹  Per share amounts have been calculated using the average shares method.

²  The repurchase plan was completed at an average repurchase price of $4.91 for 917,344 shares and $4,506,248 for the year ended April 30, 2020 and $5.98 for 1,047,640 shares and $6,268,230 for the year ended April 30, 2019.

³  The rights offering was completed at a price of $5.17 for 6,001,836 shares and $31,029,492 for the year ended April 30, 2023 (Note 8).

⁴  The tender offer was completed at a price of $7.01 for 25,577,060 shares and $179,295,192 for the year ended April 30, 2021.

⁵  Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results.

⁶  The total return calculation assumes that distributions are reinvested at NAV. Past performance is no guarantee of future results.

⁷  The total return calculation assumes that distributions are reinvested in accordance with the Fund’s dividend reinvestment plan. Past performance is no guarantee of future results.

⁸  Included in the expense ratios are certain non-recurring legal and transfer agent fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 2.37% and 2.35%, respectively.

⁹  Reflects fee waivers and/or expense reimbursements.

¹⁰  The manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.

¹¹  Represents value of net assets plus the loan outstanding at the end of the period divided by the loan outstanding at the end of the period.

See Notes to Financial Statements.

Western Asset High Income Fund II Inc. 2023 Annual Report 31

Notes to financial statements

1. Organization and significant accounting policies

Western Asset High Income Fund II Inc. (the “Fund”) was incorporated in Maryland and is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund seeks to maximize current income by investing at least 80% of its net assets, plus any borrowings for investment purposes, in high-yield debt securities. As a secondary objective, the Fund seeks capital appreciation to the extent consistent with its objective of seeking to maximize current income.

The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (“ASC 946”). The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”), including, but not limited to, ASC 946. Estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ. Subsequent events have been evaluated through the date the financial statements were issued.

(a) Investment valuation. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services typically use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Directors.

32 Western Asset High Income Fund II Inc. 2023 Annual Report

Pursuant to policies adopted by the Board of Directors, the Fund’s manager has been designated as the valuation designee and is responsible for the oversight of the daily valuation process. The Fund’s manager is assisted by the Global Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Fund’s manager and the Board of Directors. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Directors quarterly.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

Western Asset High Income Fund II Inc. 2023 Annual Report 33

Notes to financial statements (cont’d)

GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:

• Level 1 — unadjusted quoted prices in active markets for identical investments

• Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities carried at fair value:

ASSETS
Description	Quoted Prices (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total
Long-Term Investments†:
Corporate Bonds & Notes		—	$	388,773,528		—		$	388,773,528
Sovereign Bonds		—		29,398,409	$	260,594			29,659,003
Convertible Bonds & Notes		—		5,951,101		—			5,951,101
U.S. Government & Agency Obligations		—		5,102,515		—			5,102,515
Senior Loans		—		1,544,062		—			1,544,062
Warrants		—		4,883		—			4,883
Common Stocks		—		—		0	*		0	*
Total Long-Term Investments		—		430,774,498		260,594			431,035,092
Short-Term Investments†	$	1,277,532		—		—			1,277,532
Total Investments	$	1,277,532	$	430,774,498	$	260,594		$	432,312,624
Other Financial Instruments:
Forward Foreign Currency Contracts††		—	$	6,122		—		$	6,122
Total	$	1,277,532	$	430,780,620	$	260,594		$	432,318,746
LIABILITIES
Description	Quoted Prices (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total
Other Financial Instruments:
Forward Foreign Currency Contracts††		—	$	300,076		—		$	300,076

† See Schedule of Investments for additional detailed categorizations.

* Amount represents less than $1.

†† Reflects the unrealized appreciation (depreciation) of the instruments.

34 Western Asset High Income Fund II Inc. 2023 Annual Report

(b) Futures contracts. The Fund uses futures contracts generally to gain exposure to, or hedge against, changes in interest rates or gain exposure to, or hedge against, changes in certain asset classes. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

Upon entering into a futures contract, the Fund is required to deposit cash or securities with a broker in an amount equal to a certain percentage of the contract amount. This is known as the ‘‘initial margin’’ and subsequent payments (‘‘variation margin’’) are made or received by the Fund each day, depending on the daily fluctuation in the value of the contract. For certain futures, including foreign denominated futures, variation margin is not settled daily, but is recorded as a net variation margin payable or receivable. The daily changes in contract value are recorded as unrealized appreciation or depreciation in the Statement of Operations and the Fund recognizes a realized gain or loss when the contract is closed.

Futures contracts involve, to varying degrees, risk of loss in excess of the amounts reflected in the financial statements. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

(c) Forward foreign currency contracts. The Fund enters into a forward foreign currency contract to hedge against foreign currency exchange rate risk on its non-U.S. dollar denominated securities or to facilitate settlement of a foreign currency denominated portfolio transaction. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price with delivery and settlement at a future date. The contract is marked-to-market daily and the change in value is recorded by the Fund as an unrealized gain or loss. When a forward foreign currency contract is closed, through either delivery or offset by entering into another forward foreign currency contract, the Fund recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it is closed.

Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency.

Forward foreign currency contracts involve elements of market risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

(d) Loan participations. The Fund may invest in loans arranged through private negotiation between one or more financial institutions. The Fund’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement related to the loan, or any rights of off-set against the borrower and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation.

Western Asset High Income Fund II Inc. 2023 Annual Report 35

Notes to financial statements (cont’d)

The Fund assumes the credit risk of the borrower, the lender that is selling the participation and any other persons interpositioned between the Fund and the borrower. In the event of the insolvency of the lender selling the participation, the Fund may be treated as a general creditor of the lender and may not benefit from any off-set between the lender and the borrower.

(e) Reverse repurchase agreements. The Fund may enter into reverse repurchase agreements. Under the terms of a typical reverse repurchase agreement, a fund sells a security subject to an obligation to repurchase the security from the buyer at an agreed upon time and price. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, the Fund’s use of the proceeds of the agreement may be restricted pending a determination by the counterparty, or its trustee or receiver, whether to enforce the Fund’s obligation to repurchase the securities. In entering into reverse repurchase agreements, the Fund will pledge cash, U.S. government securities or other liquid debt obligations at least equal in value to its obligations with respect to reverse repurchase agreements or will take other actions permitted by law to cover its obligations. If the market value of the collateral declines during the period, the Fund may be required to post additional collateral to cover its obligation. Cash collateral that has been pledged to cover obligations of the Fund under reverse repurchase agreements, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral are noted in the Schedule of Investments. Interest payments made on reverse repurchase agreements are recognized as a component of “Interest expense” on the Statement of Operations. In periods of increased demand for the security, the Fund may receive a fee for use of the security by the counterparty, which may result in interest income to the Fund.

(f) Securities traded on a when-issued and delayed delivery basis. The Fund may trade securities on a when-issued or delayed delivery basis. In when-issued and delayed delivery transactions, the securities are purchased or sold by the Fund with payment and delivery taking place in the future in order to secure what is considered to be an advantageous price and yield to the Fund at the time of entering into the transaction.

Purchasing such securities involves risk of loss if the value of the securities declines prior to settlement. These securities are subject to market fluctuations and their current value is determined in the same manner as for other securities.

(g) Cash flow information. The Fund invests in securities and distributes dividends from net investment income and net realized gains, which are paid in cash and may be reinvested at the discretion of shareholders. These activities are reported in the Statements of Changes in Net Assets and additional information on cash receipts and cash payments is presented in the Statement of Cash Flows.

(h) Foreign currency translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated

36 Western Asset High Income Fund II Inc. 2023 Annual Report

into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales of foreign currencies, including gains and losses on forward foreign currency contracts, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the values of assets and liabilities, other than investments in securities, on the date of valuation, resulting from changes in exchange rates.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

(i) Credit and market risk. The Fund invests in high-yield and emerging market instruments that are subject to certain credit and market risks. The yields of high-yield and emerging market debt obligations reflect, among other things, perceived credit and market risks. The Fund’s investments in securities rated below investment grade typically involve risks not associated with higher rated securities including, among others, greater risk related to timely and ultimate payment of interest and principal, greater market price volatility and less liquid secondary market trading. The consequences of political, social, economic or diplomatic changes may have disruptive effects on the market prices of investments held by the Fund. The Fund’s investments in non-U.S. dollar denominated securities may also result in foreign currency losses caused by devaluations and exchange rate fluctuations.

(j) Foreign investment risks. The Fund’s investments in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or may pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Fund. Foreign investments may also subject the Fund to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which affect the market and/or credit risk of the investments.

(k) Counterparty risk and credit-risk-related contingent features of derivative instruments. The Fund may invest in certain securities or engage in other transactions where the Fund is exposed to counterparty credit risk in addition to broader market risks.

Western Asset High Income Fund II Inc. 2023 Annual Report 37

Notes to financial statements (cont’d)

The Fund may invest in securities of issuers, which may also be considered counterparties as trading partners in other transactions. This may increase the risk of loss in the event of default or bankruptcy by the counterparty or if the counterparty otherwise fails to meet its contractual obligations. The Fund’s subadviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. Market events and changes in overall economic conditions may impact the assessment of such counterparty risk by the subadviser. In addition, declines in the values of underlying collateral received may expose the Fund to increased risk of loss.

With exchange traded and centrally cleared derivatives, there is less counterparty risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default of the clearing broker or clearinghouse.

The Fund has entered into master agreements, such as an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement, with certain of its derivative counterparties that govern over-the-counter (“OTC”) derivatives and provide for general obligations, representations, agreements, collateral posting terms, netting provisions in the event of default or termination and credit related contingent features. The credit related contingent features include, but are not limited to, a percentage decrease in the Fund’s net assets or net asset value per share over a specified period of time. If these credit related contingent features were triggered, the derivatives counterparty could terminate the positions and demand payment or require additional collateral.

Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. However, absent an event of default by the counterparty or a termination of the agreement, the terms of the ISDA Master Agreements do not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the Fund and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction.

Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearinghouse for exchange traded derivatives while collateral terms are contract specific for OTC traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

38 Western Asset High Income Fund II Inc. 2023 Annual Report

As of April 30, 2023, the Fund held forward foreign currency contracts with credit related contingent features which had a liability position of $300,076. If a contingent feature in the master agreements would have been triggered, the Fund would have been required to pay this amount to its derivatives counterparties.

(l) Security transactions and investment income. Security transactions are accounted for on a trade date basis. Interest income (including interest income from payment-in-kind securities), adjusted for amortization of premium and accretion of discount, is recorded on the accrual basis. Paydown gains and losses on mortgage- and asset-backed securities are recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. Foreign dividend income is recorded on the ex-dividend date or as soon as practicable after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence. The cost of investments sold is determined by use of the specific identification method. To the extent any issuer defaults or a credit event occurs that impacts the issuer, the Fund may halt any additional interest income