N-Q 1 c53332_nq.htm

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: Donald C. Burke, Chief Executive Officer, The BlackRock Pennsylvania Strategic Municipal Trust, 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011

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

Date of fiscal year end: 12/31/2008

Date of reporting period: 01/01/2008 – 03/31/2008


Item 1 – Schedule of Investments

BlackRock Pennsylvania Strategic Municipal Trust          
Schedule of Investments as of March 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)
      Par      
   
Municipal Bonds
(000)     Value
Pennsylvania - 108.0%  
Allegheny County, Pennsylvania, Hospital Development Authority,
         
   
Revenue Refunding Bonds (West Penn Allegheny Health System), Series
         
   
A, 5.375%, 11/15/40
$
 470  
$
 377,955
   
Allegheny County, Pennsylvania, Port Authority, Special Transportation
         
   
Revenue Bonds, 6.125%, 3/01/09 (a)(b)
1,000     1,049,750
   
Bucks County, Pennsylvania, IDA, Revenue Refunding Bonds
         
   
(Pennswood Village Project), Series A, 6%, 10/01/12 (b)
1,400     1,585,598
   
Catasauqua, Pennsylvania, Area School District, GO, Refunding, 5%,
         
   
2/15/31
1,000     1,001,230
   
Chester County, Pennsylvania, IDA, Water Facilities Revenue Bonds
         
   
(Aqua Pennsylvania, Inc. Project), AMT, Series A, 5%, 2/01/40 (c)
2,000     1,825,260
   
Delaware County, Pennsylvania, Health Facilities Authority Revenue
         
   
Bonds (Mercy Health Corporation Project), 6%, 12/15/26 (d)
1,500     1,554,540
   
Delaware County, Pennsylvania, IDA, Water Facilities Revenue Bonds
         
   
(Philadelphia Suburban Water), 6%, 6/01/29 (c)
1,250     1,255,913
   
Lancaster County, Pennsylvania, Hospital Authority Revenue Bonds
         
   
(Masonic Homes Project), 5%, 11/01/36
1,000     921,580
   
McKeesport, Pennsylvania, Area School District, GO, Refunding, Series
         
   
A, 5%, 10/01/24 (e)
1,000     1,023,220
   
Mifflin County, Pennsylvania, School District, GO,
         
   
7.50%, 9/01/22 (f)
200     241,696
   
Monroe County, Pennsylvania, Hospital Authority Revenue Refunding
         
   
Bonds (Pocono Medical Center), 5.125%, 1/01/37
345     300,881
   
Montgomery County, Pennsylvania, IDA, Retirement Community
         
   
Revenue Bonds (ACTS Retirement - Life Communities Inc.), 5.25%,
         
   
11/15/28
1,250     1,190,925
   
Montgomery County, Pennsylvania, IDA, Water Facilities Revenue
         
   
Bonds (Aqua Pennsylvania, Inc. Project),
         
   
Series A, 5.25%, 7/01/42
300     288,240
   
Pennsylvania Economic Development Financing Authority, Exempt
         
   
Facilities Revenue Bonds (Amtrak Project), AMT,
         
   
Series A, 6.25%, 11/01/31
1,000     1,001,000
   
Pennsylvania Economic Development Financing Authority, Exempt
         
   
Facilities Revenue Bonds (Amtrak Project), AMT,
         
   
Series A, 6.375%, 11/01/41
1,000     1,011,360
   
Pennsylvania Economic Development Financing Authority, Resource
         
   
Recovery Revenue Refunding Bonds (Colver Project), Series G, 5.125%,
         
   
12/01/15
 
1,000
     948,540

Portfolio Abbreviations
To simplify the listings of BlackRock Pennsylvania Strategic Municipal Trust's portfolio holdings in
the Schedule of Investments, we have abbreviated the names of many of the securities according
to the list below.        
  AMT   Alternative Minimum Tax (subject to)   IDA   Industrial Development Authority
  GO   General Obligation Bonds   S/F   Single-Family
  HFA   Housing Finance Agency        

1

BlackRock Pennsylvania Strategic Municipal Trust          
Schedule of Investments as of March 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)
      Par      
  Municipal Bonds  
(000)
    Value
  Pennsylvania HFA, S/F Mortgage Revenue Bonds, AMT, Series 95A,          
  4.90%, 10/01/37 $ 1,000  
$
 877,380
  Pennsylvania HFA, S/F Mortgage Revenue Refunding Bonds, AMT,          
  Series 96A, 4.70%, 10/01/37   495     419,117
  Pennsylvania HFA, S/F Mortgage Revenue Refunding Bonds, AMT,          
  Series 97A, 4.65%, 10/01/31   1,300     1,129,908
  Pennsylvania State Higher Educational Facilities Authority Revenue          
  Bonds (Drexel University), Series A, 5%, 5/01/37 (a)   1,000     986,370
  Pennsylvania State Higher Educational Facilities Authority Revenue          
  Bonds (Lafayette College Project), 6%, 5/01/30   1,250     1,299,950
  Pennsylvania State Turnpike Commission, Oil Franchise Tax Revenue          
  Refunding Bonds, Sub-Series B, 5%, 12/01/23 (g)   150     152,843
  Philadelphia, Pennsylvania, Airport Revenue Bonds, AMT, Series A, 5%,          
  6/15/37 (e)   1,150     1,031,527
  Philadelphia, Pennsylvania, Hospitals and Higher Education Facilities          
  Authority, Hospital Revenue Refunding Bonds (Temple University          
  Health System), Series A, 5.50%, 7/01/30   465     425,424
  Philadelphia, Pennsylvania, School District, GO, Refunding, Series A,          
  5%, 8/01/15 (g)   1,000     1,081,780
  Philadelphia, Pennsylvania, School District, GO, Series C, 5.75%,          
  3/01/10 (a)(b)   1,550     1,649,665
  Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds,          
  Series A, 5%, 7/01/27 (e)   520     525,314
  Pittsburgh, Pennsylvania, Water and Sewer Authority, Water and          
  Sewer System Revenue Bonds, First Lien, 5%, 9/01/15 (a)(b)   2,000     2,218,820
  Scranton, Pennsylvania, School District, GO, Series A,          
  5%, 7/15/38 (e)   1,000     993,750
  Washington County, Pennsylvania, Capital Funding Authority Revenue          
  Bonds (Capital Projects and Equipment Program), 6.15%, 12/01/29 (g)  
120
   
119,845
  Wilkes-Barre, Pennsylvania, Financing Authority, Revenue Refunding          
  Bonds (Wilkes University Project), 5%, 3/01/37   700     600,152
            29,089,533
Puerto Rico - 23.6% Puerto Rico Commonwealth Aqueduct and Sewer Authority, Senior Lien          
  Revenue Bonds, Series A, 6%, 7/01/38   200     203,966
  Puerto Rico Commonwealth, Public Improvement, GO, Series A, 5.25%,          
  7/01/37   2,000     1,899,660
  Puerto Rico Industrial, Tourist, Educational, Medical and          
  Environmental Control Facilities Revenue Bonds (Ana G. Mendez          
  University System Project), 5%, 3/01/26   1,250     1,101,338
  Puerto Rico Public Buildings Authority, Government Facilities Revenue          
  Refunding Bonds, Series N, 5%, 7/01/37 (l)   300     271,431

2

BlackRock Pennsylvania Strategic Municipal Trust
         
Schedule of Investments as of March 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)  
    
  Par      
 
Municipal Bonds
 
(000)
    Value  
  Puerto Rico Public Finance Corporation, Commonwealth Appropriation          
 
Revenue Bonds, Series E, 5.50%, 2/01/12 (b)
$ 1,495   $ 1,613,404  
  Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue          
  Refunding Bonds, Series A, 4.973%, 8/01/43 (a)(h)   6,000   761,040  
  Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue          
 
Refunding Bonds, Series A, 5.25%, 8/01/57
  535   496,186  
   
      6,347,025  
  Total Municipal Bonds (Cost - $36,485,084) - 131.6%       35,436,558  
 
 
Corporate Bonds
         
  MuniMae TE Bond Subsidiary LLC, 6.875%, 6/30/49 (i)   4,000   4,140,520  
  Total Corporate Bonds (Cost - $4,165,930) - 15.4%       4,140,520  
 
Short-Term Securities
  Shares      
  CMA Pennsylvania Municipal Money Fund, 1.61% (j)(k)   4,442,101   4,442,101  
 
Total Short-Term Securities
         
 
(Cost - 4,442,101) - 16.5%
      4,442,101  
  Total Investments (Cost - $45,093,115*) - 163.5%       44,019,179  
 
Other Assets Less Liabilities - 1.5%
      416,534  
  Preferred Shares, at Redemption Value - (65.0%)       (17,502,904 )
  Net Assets Applicable to Common Shares - 100.0%       $ 26,932,809  

           * The cost and unrealized appreciation (depreciation) of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:

  Aggregate cost   $ 45,093,115  
  Gross unrealized appreciation   $ 966,062  
  Gross unrealized depreciation     (2,039,998 )
  Net unrealized depreciation   $ (1,073,936 )

(a)     

MBIA Insured.
 
(b)     

Prerefunded.
 
(c)     

FGIC Insured.
 
(d)     

U.S. government securities, held in escrow, are used to pay interest on this security as well as retire the bond in full at the date indicated, typically at premium to par.
 
(e)     

FSA Insured.
 
(f)     

XL Capital Insured.
 
(g)     

Ambac Insured.
 
(h)     

Represents a zero coupon bond; the interest rate shown reflects the effective yield at the time of purchase.
 
(i)     

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors. Unless otherwise indicated, these securities are not considered to be illiquid.
 
(j)     

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:
 
    
Affiliate Net Activity Dividend Income
CMA Pennsylvania Municipal Money Fund 3,105,117 $12,617

(k)     

Represents the current yield as of March 31, 2008.
 
(l)     

Commonwealth Guaranteed.
 

3

  BlackRock Pennsylvania Strategic Municipal Trust    
   
  Schedule of Investments as of March 31, 2008 (Unaudited)          
               *Forward interest rate swaps outstanding as of March 31, 2008 were as follows:              
     
Notional
     
      Amount  
 
 Unrealized  
     
(000)
 
 
 Depreciation  
  Pay a fixed rate of 3.31% and receive a floating rate based on    
   
  1-week (SIFMA) Municipal Swap Index                            
   
 
  Broker, JPMorgan Chase                              
   
  Expires May 2018                           $
1,600
  
$
(14,906 )
 
  Pay a fixed rate of 3.553% and receive a floating rate based on                              
   
  1-week (SIFMA) Municipal Swap Index                              
   
 
  Broker, Lehman Brothers Special Financing                              
   
  Expires June 2023                           $
2,000
    
(4,246 )
  Total                              
$
(19,152 )

4

BlackRock Pennsylvania Strategic Municipal Trust

• Effective January 1, 2008, the BlackRock Pennsylvania Strategic Municipal Trust (the “Trust”) adopted FASB Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

  • Level 1 – price quotations in active markets/exchanges for identical securities

  • Level 2 – other observable inputs (including, but not limited to: quoted prices for 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 circumstance, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)

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

The following table summarizes the inputs used as of March 31, 2008 in determining the fair valuation of the Trust’s investments:

Valuation   Investments in Other Financial
Inputs   Securities Instruments*
Level 1   0   0  
Level 2   $44,019,179   $(19,152 )
Level 3    0   0  
Total   $44,019,179   $(19,152 )

*Other financial instruments are derivative financial instruments such as swaps.

5

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/ Donald C. Burke
  Donald C. Burke
  Chief Executive Officer of
  The BlackRock Pennsylvania Strategic Municipal Trust
 
Date: May 22, 2008

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/ Donald C. Burke
  Donald C. Burke
  Chief Executive Officer (principal executive officer) of
  The BlackRock Pennsylvania Strategic Municipal Trust
 
Date: May 22, 2008
 
By:
/s/ Neal J. Andrews
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  The BlackRock Pennsylvania Strategic Municipal Trust
 
Date: May 22, 2008