N-Q 1 e55477nq.htm FORM N-Q

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

 

Investment Company Act file number 811-09417

 

Name of Fund: The BlackRock Pennsylvania Strategic Municipal Trust (BPS)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

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

 

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

 

Date of fiscal year end: 04/30/2014

 

Date of reporting period: 07/31/2013

 

Item 1 – Schedule of Investments

 
 
Schedule of Investments July 31, 2013 (Unaudited) BlackRock Pennsylvania Strategic Municipal Trust (BPS)
  (Percentages shown are based on Net Assets)
   
Municipal Bonds Par
(000)		   Value  
Pennsylvania — 131.9%  
Corporate  — 5.5%  
County of Beaver IDA, Refunding RB, First Energy, Nuclear Energy Corp. Project, Mandatory Put Bonds, Series A, 3.38%, 1/01/35 (a) $ 200 $ 201,384  
Pennsylvania Economic Development Financing Authority, RB:          
  American Water Co. Project, 6.20%, 4/01/39   210   227,710  
  Aqua Pennsylvania, Inc. Project, AMT, 6.75%, 10/01/18   600   724,386  
Pennsylvania Economic Development Financing Authority, Refunding RB, Series A, AMT:            
  Amtrak Project, 5.00%, 11/01/41   160   154,587  
  Aqua Pennsylvania, Inc. Project, 5.00%, 12/01/34   180   182,637  
    1,490,704  
County/City/Special District/School District  — 15.7%  
Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A:            
  5.00%, 5/01/35   190   181,262  
  5.00%, 5/01/42   450   417,037  
City of Philadelphia Pennsylvania, GO, Refunding, Series A (AGC), 5.00%, 8/01/24   370   392,959  
City of Pittsburgh Pennsylvania, GO, Refunding, Series B, 5.00%, 9/01/26   125   135,229  
County of Lycoming Pennsylvania, GO, Series A (AGM):          
  4.00%, 8/15/38   160   140,150  
  4.00%, 8/15/42   100   86,131  
County of Lycoming Water & Sewer Authority, RB, (AGM), 5.00%, 11/15/41   100   99,542  
County of York Pennsylvania, GO, Refunding, 5.00%, 3/01/36   100   102,391  
Falls Township Pennsylvania, RB, Water & Sewer Authority, 5.00%, 12/01/37   200   204,362  
Marple Newtown School District, GO, (AGM), 5.00%, 6/01/31   600   638,004  
           
Municipal Bonds Par
(000)		   Value  
Pennsylvania (continued)  
County/City/Special District/School District (concluded)  
Owen J Roberts School District, GO, 4.75%, 11/15/25 $ 700 $ 754,425  
Philadelphia School District, GO, Series E, 6.00%, 9/01/38   100   106,978  
Philipsburg-Osceola Area School District Pennsylvania, GO (AGM):          
  5.00%, 4/01/41   155   156,707  
  Series A, 4.00%, 4/01/35   150   134,124  
  Series A, 4.00%, 4/01/38   110   93,668  
  Series A, 4.00%, 4/01/41   40   33,985  
State Public School Building Authority, Community College, Allegheny County Project (AGM), 5.00%, 7/15/34   310   316,932  
State Public School Building Authority, Refunding RB, Harrisburg School District Project, Series A (AGC), 5.00%, 11/15/33   250   254,125  
    4,248,011  
Education  — 18.2%  
Adams County IDA, Refunding RB, Gettysburg College:          
  5.00%, 8/15/24   100   107,951  
  5.00%, 8/15/25   100   106,802  
Cumberland County Municipal Authority, RB, AICUP Financing Program, Dickinson College Project, 5.00%, 11/01/39   200   205,162  
Delaware County Authority, Refunding RB:          
  Haverford College, 5.00%, 11/15/35   415   432,169  
  Villanova University, 5.25%, 12/01/31   100   105,099  
East Hempfield Township IDA, RB, Student Services, Inc., Student Housing Project at Millersville University, 5.00%, 7/01/35   100   93,552  
Pennsylvania Higher Educational Facilities Authority, RB:          
  Drexel University, Series A (NPFGC), 5.00%, 5/01/37   150   150,387  
  Shippensburg University Student Services, 5.00%, 10/01/44   265   243,450  
  Thomas Jefferson University, 5.00%, 3/01/40   1,000   1,017,340  
                 
BLACKROCK PENNSYLVANIA STRATEGIC MUNICIPAL TRUSTJULY 31, 20131
 
Schedule of Investments (continued) BlackRock Pennsylvania Strategic Municipal Trust (BPS)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds Par
(000)		   Value  

Pennsylvania (continued)

 

Education (concluded)  
Pennsylvania Higher Educational Facilities Authority, Refunding RB:            
  Drexel University, Series A, 5.25%, 5/01/41 $ 1,180 $ 1,212,403  
  La Salle University, 5.00%, 5/01/37   140   134,534  
  State System of Higher Education, Series AL, 5.00%, 6/15/35   100   103,101  
  Thomas Jefferson University, 4.00%, 3/01/37   70   60,962  
  Thomas Jefferson University, 5.00%, 3/01/42   60   60,740  
Swarthmore Borough Authority, Refunding RB, Swarthmore College Project, 5.00%, 9/15/38   215   226,154  
University of Pittsburgh Pennsylvania, RB, Capital Project, Series B, 5.00%, 9/15/28   610   661,338  
    4,921,144  
Health  — 38.1%  
Berks County Municipal Authority, Refunding RB, Reading Hospital & Medical Center Project, Series A3, 5.50%, 11/01/31     500   547,320  
Centre County Hospital Authority, RB, Mount Nittany Medical Center Project, 7.00%, 11/15/46   390   444,350  
County of Montgomery IDA Pennsylvania, RB, Acts Retirement Life Community, Series A, 4.50%, 11/15/36   375   328,290  
County of Montgomery IDA Pennsylvania, Refunding RB, Acts Retirement Life Community:          
  5.00%, 11/15/27   175   176,754  
  5.00%, 11/15/28   110   109,860  
  5.00%, 11/15/29   100   99,442  
Cumberland County Municipal Authority, Refunding RB:          
  Asbury Pennsylvania Obligated Group, 5.25%, 1/01/41   210   186,234  
  Diakon Lutheran, 6.38%, 1/01/39   500   525,235  
             
Municipal Bonds Par
(000)		   Value  

Pennsylvania (continued)

 

Health (concluded)  
Dauphin County General Authority, Refunding RB, Pinnacle Health System Project, Series A, 6.00%, 6/01/29 $ 500 $ 537,805  
Franklin County IDA Pennsylvania, Refunding RB, Chambersburg Hospital Project, 5.38%, 7/01/42   415   419,636  
Lehigh County General Purpose Authority, Refunding RB, Saint Luke's Bethlehem Hospital, 5.38%, 8/15/13 (b)   1,900   1,903,838  
Monroeville Finance Authority, Refunding RB, Allegheny County Pennsylvania, UPMC, 5.00%, 2/15/42   340   333,407  
Montgomery County Higher Education & Health Authority, Refunding RB, Abington Memorial Hospital:          
  3.25%, 6/01/26   115   101,649  
  3.75%, 6/01/31   85   72,284  
Pennsylvania Higher Educational Facilities Authority, Refunding RB, University of Pittsburgh Medical Center, Series E, 5.00%, 5/15/31   1,000   1,013,710  
Philadelphia Hospitals & Higher Education Facilities Authority, RB, The Children's Hospital of Philadelphia Project, Series C, 5.00%, 7/01/41   940   944,230  
Saint Mary Hospital Authority, Refunding RB, Catholic Health East, Series A:          
  5.00%, 11/15/26   250   258,482  
  5.00%, 11/15/27   175   179,365  
South Fork Municipal Authority, Refunding RB, Conemaugh Valley Memorial Hospital, Series B (AGC), 5.38%, 7/01/35     245   249,731  
Southcentral General Authority, Wellspan Health Obligation Group, Series A, 6.00%, 6/01/29   1,250   1,343,450  
Union County Hospital Authority, Refunding RB, Evangelical Community Hospital Project, 7.00%, 8/01/41   460   517,472  
    10,292,544  
 
               
BLACKROCK PENNSYLVANIA STRATEGIC MUNICIPAL TRUSTJULY 31, 20132
 
Schedule of Investments (continued) BlackRock Pennsylvania Strategic Municipal Trust (BPS)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds Par
(000)		   Value  

Pennsylvania (continued)

 

Housing  — 15.2%  
Pennsylvania HFA, RB, S/F Mortgage, Series 114-C:          
  3.65%, 10/01/37 $ 390 $ 322,823  
  3.70%, 10/01/42   665   542,148  
Pennsylvania HFA, Refunding RB, S/F Mortgage:          
  Series 92-A, AMT, 4.75%, 4/01/31   95   95,190  
  Series 97-A, AMT, 4.65%, 10/01/31   1,300   1,350,570  
  Series 99-A, AMT, 5.15%, 4/01/38   210   204,548  
  Series 110-B, 4.75%, 10/01/39   140   143,861  
  Series 113, 4.85%, 10/01/37   775   760,879  
  Series 115-A, AMT, 4.20%, 10/01/33   750   687,683  
    4,107,702  
State  — 11.9%  
Commonwealth of Pennsylvania, GO, First Series:          
  5.00%, 3/15/28   825   888,096  
  5.00%, 6/01/28   1,360   1,481,421  
  5.00%, 3/15/29   275   291,566  
Pennsylvania Economic Development Financing Authority, Refunding RB, Unemployment Compensation, Series B, 5.00%, 7/01/23   500   541,965  
    3,203,048  
Transportation  — 22.6%  
City of Philadelphia Pennsylvania, ARB, Series A:          
  5.00%, 6/15/40   1,325   1,294,287  
  AMT (AGM), 5.00%, 6/15/37   1,150   1,112,579  
Delaware River Port Authority of Pennsylvania & New Jersey, RB, Series D, 5.00%, 1/01/40   750   767,310  
Pennsylvania Turnpike Commission, RB:          
  Motor License Fund, Enhanced Turnpike, Special Sub-Series A, 5.00%, 12/01/37   140   142,569  
  Motor License Fund, Enhanced Turnpike, Special Sub-Series A, 5.00%, 12/01/42   215   217,468  
             
Municipal Bonds Par
(000)		   Value  

Pennsylvania (concluded)

 

Transportation (concluded)  
Pennsylvania Turnpike Commission, RB  (concluded):          
  Senior Lien, Series A, 5.00%, 12/01/42 $ 470 $ 475,917  
  Series A (AMBAC), 5.25%, 12/01/32   870   905,470  
  Sub-Series A, 5.13%, 12/01/26   100   106,598  
  Sub-Series A, 6.00%, 12/01/41   100   109,126  
Pennsylvania Turnpike Commission, Refunding RB, Sub-Series B, 5.25%, 6/01/24     250   271,553  
Southeastern Pennsylvania Transportation Authority, RB, Capital Grant Receipts:          
  5.00%, 6/01/28   290   305,135  
  5.00%, 6/01/29   385   401,697  
    6,109,709  
Utilities  — 4.7%  
Bucks County Water & Sewer Authority, RB, Water System (AGM), 5.00%, 12/01/41   100   103,016  
City of Philadelphia Pennsylvania Gas Works, RB, Ninth Series, 5.25%, 8/01/40   270   267,308  
City of Philadelphia Pennsylvania Water & Wastewater, RB:          
  Series A, 5.25%, 1/01/36   100   102,551  
  Series C (AGM), 5.00%, 8/01/40   350   351,848  
County of Westmoreland Municipal Authority, RB, 5.00%, 8/15/37   250   251,760  
Pennsylvania Economic Development Financing Authority, RB, Philadelphia Biosolids Facility, 6.25%, 1/01/32   185   193,525  
    1,270,008  
Total Municipal Bonds in Pennsylvania   35,642,870  

Guam — 0.6%

 

State  — 0.6%  
Territory of Guam, RB, Limited Obligation Bonds, Section 30, Series A, 5.63%, 12/01/29   150   155,271  
 
                     
BLACKROCK PENNSYLVANIA STRATEGIC MUNICIPAL TRUSTJULY 31, 20133
 
Schedule of Investments (continued) BlackRock Pennsylvania Strategic Municipal Trust (BPS)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds Par
(000)		   Value  

Puerto Rico — 6.6%

  
State  — 4.5%  
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.38%, 8/01/39 $ 920 $ 937,167  
Puerto Rico Sales Tax Financing Corp., Refunding RB, Senior Series C, 5.25%, 8/01/40   300   287,481  
    1,224,648  
Utilities  — 2.1%  
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 7/01/38   145   128,782  
Puerto Rico Electric Power Authority, RB, Series WW, 5.50%, 7/01/38   500   427,215  
    555,997  
Total Municipal Bonds in Puerto Rico   1,780,645  
Total Municipal Bonds — 139.1%   37,578,786  
 
 

Municipal Bonds Transferred to Tender

Option Bond (TOB) Trusts (c)

  
 

Pennsylvania — 33.4%

  
Education  — 9.6%  
Pennsylvania Higher Educational Facilities Authority, RB, University of Pennsylvania Health System, Series A:            
  4.00%, 8/15/39   220   183,387  
  5.75%, 8/15/41   850   894,625  
Pennsylvania Higher Educational Facilities Authority, Refunding RB, Trustees of the University of Pennsylvania, Series C, 4.75%, 7/15/35   500   500,360  
Pennsylvania State University, RB, 5.00%, 3/01/40   1,000   1,022,230  
    2,600,602  
Health  — 13.6%  
Geisinger Authority Pennsylvania, RB, Health System:          
  Series A, 5.13%, 6/01/34   500   509,680  
  Series A, 5.25%, 6/01/39   1,000   1,019,036  
  Series A-1, 5.13%, 6/01/41   1,160   1,174,477  
             
Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (c)   Par
(000)		   Value  

Pennsylvania (concluded)

  
Health (concluded)  
Philadelphia Hospitals & Higher Education Facilities Authority, Refunding RB, Jefferson Health System, Series B, 5.00%, 5/15/40 $ 1,000 $ 988,280  
    3,691,473  
 
Housing  — 1.7%  
Pennsylvania HFA, Refunding RB, S/F, Series 96-A, AMT, 4.70%, 10/01/37   460   450,501  
 
State  — 8.5%  
Commonwealth of Pennsylvania, GO, First Series, 5.00%, 11/15/30   1,180   1,262,482  
Pennsylvania Turnpike Commission, RB, Oil Franchise Tax, Remarketing, Series C (NPFGC), 5.00%, 12/01/32   1,000   1,024,950  
    2,287,432  

Total Municipal Bonds Transferred to Tender

Option Bond (TOB) Trusts — 33.4%

   9,030,008  
Total Long-Term Investments
(Cost — $46,605,814) — 172.5%		   46,608,794  
 
 
Short-Term Securities
Shares		      
BIF Pennsylvania Municipal Money Fund, 0.00% (d)(e)   946,735   946,735  
Total Short-Term Securities
(Cost — $946,735) — 3.5%		   946,735  
Total Investments
(Cost — $47,552,549*) — 176.0%		   47,555,529  
Other Assets Less Liabilities — 0.7%   194,831  
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (16.4%)   (4,435,771 )
VRDP Shares, at Liquidation Value — (60.3%)   (16,300,000 )
Net Assets Applicable to Common Shares — 100.0% $ 27,014,589  
 
                   
BLACKROCK PENNSYLVANIA STRATEGIC MUNICIPAL TRUSTJULY 31, 20134
 
Schedule of Investments (continued) BlackRock Pennsylvania Strategic Municipal Trust (BPS)
   

 

* As of July 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:  
     
Tax cost $ 43,193,379  
Gross unrealized appreciation $ 1,109,911  
Gross unrealized depreciation   (1,182,267)  
Net unrealized depreciation $ (72,356)  
         

Notes to Schedule of Investments

 

(a) Variable rate security. Rate shown is as of report date.  
(b) US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.  
(c) Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction.  
(d) Investments in issuers considered to be an affiliate of the Trust during the period ended July 31, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:  
   
  Affiliate   Shares
Held at
April 30, 2013		   Net
Activity		   Shares
Held at
July 31, 2013		   Income  
  BIF Pennsylvania Municipal Money Fund   1,396,790   (450,055)   946,735   —  
                     
 
(e) Represents the current yield as of report date.  

Portfolio Abbreviations

 

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:  
   
AGC Assured Guarantee Corp.  
AGM Assured Guaranty Municipal Corp.  
AMBAC American Municipal Bond Assurance Corp.  
AMT Alternative Minimum Tax (subject to)  
ARB Airport Revenue Bonds  
GO General Obligation Bonds  
HFA Housing Finance Agency  
IDA Industrial Development Authority  
NPFGC National Public Finance Guarantee Corp.  
RB Revenue Bonds  
S/F Single-Family  
• For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.  
                                                   
BLACKROCK PENNSYLVANIA STRATEGIC MUNICIPAL TRUSTJULY 31, 20135
 
Schedule of Investments (concluded) BlackRock Pennsylvania Strategic Municipal Trust (BPS)
   

 

   
• Fair Value Measurements - Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:  
     
  • Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access  
   
  • Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)  
   
  • Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust's own assumptions used in determining the fair value of investments)  
   
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

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

The following table summarizes the Trust's investments categorized in the disclosure hierarchy as of July 31, 2013:		  
   
  Level 1   Level 2   Level 3   Total  
Assets:    
Investments:  
  Long-Term Investments 1   —     $ 46,608,794   — $ 46,608,794  
  Short-Term Securities $ 946,735   —   —   946,735  
Total $ 946,735 $ 46,608,794   — $ 47,555,529  
   
1 See above Schedule of Investments for values in each sector.  
Certain of the Trust's liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of July 31, 2013, such liabilities are categorized within the disclosure hierarchy as follows:
  		  
  Level 1   Level 2   Level 3   Total  
Liabilities:    
  Bank overdraft   — $ (1,987)   —   $ (1,987)  
  TOB trust certificates   —   (4,434,506)   —   (4,434,506)  
  VRDP Shares   —   (16,300,000)   —   (16,300,000)  
Total   — $ (20,736,493)   — $ (20,736,493)  
 

There were no transfers between levels during the period ended July 31, 2013.		  
                                     

 

 

BLACKROCK PENNSYLVANIA STRATEGIC MUNICIPAL TRUSTJULY 31, 20136
 

Item 2 – Controls and Procedures

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

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

Item 3 – Exhibits

Certifications – Attached hereto

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

 

The BlackRock Pennsylvania Strategic Municipal Trust

 

By: /s/ John M. Perlowski

John M. Perlowski

Chief Executive Officer (principal executive officer) of

The BlackRock Pennsylvania Strategic Municipal Trust

 

Date: September 24, 2013

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By: /s/ John M. Perlowski

John M. Perlowski

Chief Executive Officer (principal executive officer) of

The BlackRock Pennsylvania Strategic Municipal Trust

 

Date: September 24, 2013

 

By: /s/ Neal J. Andrews

Neal J. Andrews

Chief Financial Officer (principal financial officer) of

The BlackRock Pennsylvania Strategic Municipal Trust

 

Date: September 24, 2013