N-Q 1 d39821dnq.htm BLACKROCK MUNICIPAL INCOME TRUST BLACKROCK MUNICIPAL INCOME TRUST

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: 811-10339

Name of Fund: BlackRock Municipal Income Trust (BFK)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Municipal Income Trust, 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: 04/30/2016

Date of reporting period: 01/31/2016


Item 1 – Schedule of Investments


Schedule of Investments January 31, 2016 (Unaudited)

  

BlackRock Municipal Income Trust (BFK)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Alabama — 3.1%

    

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

   $ 2,910      $ 2,938,518   

County of Jefferson Alabama Sewer, Refunding RB:

    

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

     1,555        1,712,350   

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

     2,275        2,538,013   

Sub-Lien, Series D, 6.00%, 10/01/42

     5,740        6,682,451   

Sub-Lien, Series D, 7.00%, 10/01/51

     1,765        2,192,977   

State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/40

     4,080        4,803,874   
    

 

 

 
               20,868,183   

Arizona — 3.1%

    

Salt Verde Financial Corp., RB, Senior:

    

5.00%, 12/01/32

     10,030        12,102,900   

5.00%, 12/01/37

     7,460        8,953,865   
    

 

 

 
               21,056,765   

California — 13.6%

    

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

     4,445        5,108,638   

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

     6,230        7,514,937   

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

     2,465        2,889,177   

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

    

5.25%, 8/15/39

     290        327,654   

5.25%, 8/15/49

     715        804,625   

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

     2,970        3,243,982   

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

    

Senior, 5.00%, 5/15/40

     11,690        13,262,422   
Municipal Bonds    Par  
(000)
    Value  

California (continued)

    

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

    

5.25%, 5/15/39

   $ 1,560      $ 1,755,562   

City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A,
6.25%, 10/01/40

     690        859,498   

County of Riverside Transportation Commission, RB, CAB, Senior Lien, Series B (c):

    

0.00%, 6/01/41

     5,000        1,619,550   

0.00%, 6/01/42

     6,000        1,830,420   

0.00%, 6/01/43

     5,000        1,416,500   

Foothill-De Anza Community College District, GO, Election of 2006, Series C, 5.00%, 8/01/40

     7,000        8,118,320   

Murrieta Community Facilities District Special Tax California, Special Tax Bonds, District No. 2, The Oaks Improvement Area A, 6.00%, 9/01/34

     4,890        4,915,135   

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

    

0.00%, 8/01/34

     3,500        1,694,035   

0.00%, 8/01/36

     4,000        1,772,080   

State of California, GO, Various Purposes:

    

6.00%, 3/01/33

     4,970        5,954,259   

6.50%, 4/01/33

     20,410        23,962,156   

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

    

Series I, 5.00%, 11/01/38

     1,495        1,735,232   

Sub-Series I-1, 6.38%, 11/01/34

     2,315        2,782,885   
    

 

 

 
               91,567,067   

Colorado — 0.7%

    

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

     4,205        4,744,543   

Connecticut — 0.4%

    

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

     2,710        3,013,981   
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2016    1


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds    Par  
(000)
    Value  

Delaware — 2.3%

    

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

   $ 2,225      $ 2,414,481   

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

     10,080        10,451,952   

Delaware Transportation Authority, RB, 5.00%, 6/01/55

     2,280        2,575,534   
    

 

 

 
               15,441,967   

District of Columbia — 4.3%

    

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

     1,480        1,718,916   

District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed,
6.75%, 5/15/40

     23,035        23,040,529   

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

    

5.00%, 10/01/39

     990        1,100,385   

5.25%, 10/01/44

     2,465        2,755,796   
    

 

 

 
               28,615,626   

Florida — 2.8%

    

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

     2,620        2,937,098   

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

     2,280        2,602,666   

County of Orange Florida Health Facilities Authority, Refunding RB, Mayflower Retirement Center:

    

5.00%, 6/01/32

     600        649,530   

5.00%, 6/01/36

     125        134,811   

5.13%, 6/01/42

     1,925        2,078,961   

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

     5,885        7,774,615   
Municipal Bonds    Par  
(000)
    Value  

Florida (continued)

    

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

   $ 3,590      $ 2,512,785   
    

 

 

 
               18,690,466   

Georgia — 2.4%

    

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

     4,370        5,079,251   

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

     1,010        1,204,455   

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

     1,650        1,857,834   

Metropolitan Atlanta Rapid Transit Authority, RB, Sales Tax, 3rd Indenture, Series A, 5.00%, 7/01/39

     5,000        5,592,350   

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

     2,210        2,448,526   
    

 

 

 
               16,182,416   

Hawaii — 0.5%

    

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

     2,660        3,033,810   

Illinois — 17.2%

    

City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien, Series C, 6.50%, 1/01/41

     11,385        13,739,418   

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

     3,560        3,433,264   

City of Chicago Illinois, GO, Refunding, Series A:

    

Project, 5.25%, 1/01/32

     6,155        6,198,331   

5.00%, 1/01/34

     2,500        2,411,000   

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

     1,605        1,719,420   

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

     2,055        2,246,732   

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

     7,625        8,151,201   
 

 

                
2    BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2016   


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds   

Par  

(000)

    Value  

Illinois (continued)

    

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

   $ 1,525      $ 1,769,854   

Illinois Finance Authority, RB, Advocate Health Care Network:

    

5.38%, 4/01/19 (a)

     5,010        5,708,695   

5.38%, 4/01/44

     5,620        6,163,679   

Illinois Finance Authority, Refunding RB:

    

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

     1,895        2,166,591   

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

     3,160        3,619,812   

Illinois State Toll Highway Authority, RB:

    

Senior, Series C, 5.00%, 1/01/36

     5,095        5,904,646   

Senior, Series C, 5.00%, 1/01/37

     5,455        6,298,725   

Series A, 5.00%, 1/01/38

     4,550        5,108,876   

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

    

Series B (AGM), 5.00%, 6/15/50

     14,710        15,622,314   

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

     3,905        4,055,460   

Railsplitter Tobacco Settlement Authority, RB:

    

5.50%, 6/01/23

     885        1,047,291   

6.00%, 6/01/28

     2,245        2,701,925   

State of Illinois, GO:

    

5.00%, 2/01/39

     2,990        3,147,035   

Series A, 5.00%, 4/01/38

     9,030        9,489,988   

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

     1,240        1,380,790   

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

    

5.00%, 4/01/39

     1,565        1,748,199   

5.00%, 4/01/44

     1,910        2,117,732   
    

 

 

 
               115,950,978   

Indiana — 4.0%

    

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

    

6.75%, 1/01/34

     1,525        1,867,637   

7.00%, 1/01/44

     3,680        4,535,637   

City of Vincennes Indiana, Refunding RB, Southwest Indiana Regional Youth Village, 6.25%, 1/01/24

     1,435        1,351,612   
Municipal Bonds   

Par  

(000)

    Value  

Indiana (continued)

    

Indiana Finance Authority, RB, Series A:

    

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

   $ 6,305      $ 7,442,044   

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

     790        861,321   

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

     880        951,852   

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

     2,905        3,128,540   

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

     1,655        1,849,247   

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

     2,150        2,440,787   

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

     2,490        2,799,084   
    

 

 

 
               27,227,761   

Iowa — 2.2%

    

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

    

5.00%, 12/01/19

     1,880        1,967,307   

5.50%, 12/01/22

     4,595        4,832,194   

5.25%, 12/01/25

     2,125        2,319,140   

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

     2,570        2,734,429   

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

     2,920        2,905,429   
    

 

 

 
               14,758,499   

Kentucky — 0.6%

    

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

     1,915        2,154,452   
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2016    3


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds   

Par  

(000)

    Value  

Kentucky (continued)

    

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

   $ 2,325      $ 1,758,444   
    

 

 

 
               3,912,896   

Louisiana — 2.7%

    

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

     6,535        7,748,223   

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

    

5.50%, 5/15/30

     1,980        2,226,906   

5.25%, 5/15/31

     1,690        1,896,332   

5.25%, 5/15/32

     2,160        2,451,621   

5.25%, 5/15/33

     2,345        2,617,700   

5.25%, 5/15/35

     985        1,103,279   
    

 

 

 
               18,044,061   

Maryland — 1.1%

    

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

     855        936,713   

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

     1,440        1,377,259   

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

     4,295        4,876,629   

Montgomery County Housing Opportunites Commission, RB, Series D, AMT, 5.50%, 1/01/38

     65        65,731   
    

 

 

 
               7,256,332   

Massachusetts — 0.8%

    

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

     2,775        2,790,929   
Municipal Bonds   

Par  

(000)

    Value  

Massachusetts (continued)

    

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

   $ 2,535      $ 2,829,009   
    

 

 

 
               5,619,938   

Michigan — 3.3%

    

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

     8,665        9,635,480   

City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41

     2,870        3,395,841   

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

     2,700        3,032,451   

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

     1,710        1,852,255   

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

     4,230        4,371,832   
    

 

 

 
               22,287,859   

Mississippi — 2.1%

    

City of Gulfport Mississipi, RB, Memorial Hospital at Gulfport Project, Series A, 5.75%, 7/01/31

     14,025        14,074,648   

Missouri — 0.5%

    

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

     495        557,627   

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

     2,035        2,207,263   
 

 

                
4    BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2016   


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds   

Par  

(000)

    Value  

Missouri (continued)

    

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

   $ 480      $ 532,574   
    

 

 

 
               3,297,464   

Nebraska — 1.4%

    

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

    

5.25%, 9/01/37

     1,610        1,819,928   

5.00%, 9/01/42

     2,815        3,082,256   

County of Douglas Nebraska Hospital Authority No. 2, Refunding RB, Health Facilities, Immanuel Obligation Group, 5.63%, 1/01/40

     3,280        3,612,854   

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

     600        676,806   
    

 

 

 
               9,191,844   

Nevada — 0.7%

    

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

     4,550        4,612,881   

New Jersey — 9.5%

    

Casino Reinvestment Development Authority, Refunding RB:

    

5.25%, 11/01/39

     2,000        2,082,440   

5.25%, 11/01/44

     2,980        3,081,171   

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

     2,115        2,197,654   

County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel, Sub-Series B, 6.25%, 1/01/37 (d)(e)

     3,680        146,243   

New Jersey EDA, RB, AMT:

    

Continental Airlines, Inc. Project, Series B, 5.63%, 11/15/30

     2,035        2,306,774   

Continental Airlines, Inc. Project, 4.88%, 9/15/19

     1,575        1,661,578   

Continental Airlines, Inc. Project, 5.25%, 9/15/29

     3,830        4,205,263   

Private Activity Bond, The Goethals Bridge Replacement Project, 5.38%, 1/01/43

     2,285        2,547,341   
Municipal Bonds   

Par  

(000)

    Value  

New Jersey (continued)

    

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

   $ 8,000      $ 9,904,960   

New Jersey State Turnpike Authority, RB:

    

Series A, 5.00%, 1/01/43

     8,150        9,181,709   

Series E, 5.00%, 1/01/45

     5,095        5,793,321   

New Jersey Transportation Trust Fund Authority, RB:

    

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

     6,815        7,171,765   

Transportation System, Series A, 5.50%, 6/15/41

     8,000        8,655,920   

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

     4,810        5,146,123   
    

 

 

 
               64,082,262   

New York — 12.7%

    

City of New York New York IDA, ARB, American Airlines, Inc., JFK International Airport Project, AMT, 7.75%, 8/01/31 (g)

     22,140        23,085,378   

City of New York New York Industrial Development Agency, ARB, American Airlines, Inc., JFK International Airport Project, AMT, 8.00%, 8/01/28 (g)

     5,000        5,219,750   

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

     4,805        5,488,271   

Counties of New York Tobacco Trust II, RB, Settlement Pass-Through, 5.75%, 6/01/43

     5,000        5,026,500   

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

     3,600        3,760,308   

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

     1,778        1,997,287   

Metropolitan Transportation Authority, RB, Series B:

    

5.25%, 11/15/38

     4,640        5,479,794   

5.25%, 11/15/39

     1,650        1,941,951   

New York Liberty Development Corp., Refunding RB:

    

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

     2,400        2,710,416   
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2016    5


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds   

Par  

(000)

    Value  

New York (continued)

    

New York Liberty Development Corp., Refunding RB (continued):

    

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

   $ 8,410      $ 8,931,756   

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

     660        698,696   

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

     1,655        1,766,530   

New York State Dormitory Authority, Refunding RB, Series D, 5.00%, 2/15/37

     6,655        7,790,410   

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

     1,575        1,589,679   

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

    

6.00%, 12/01/36

     2,525        2,956,725   

6.00%, 12/01/42

     1,960        2,285,144   

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

     4,600        4,578,932   
    

 

 

 
               85,307,527   

North Carolina — 4.1%

    

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

     12,130        12,153,411   

North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/38

     10,000        11,144,500   

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

     2,750        3,065,617   
Municipal Bonds   

Par  

(000)

    Value  

North Carolina (continued)

    

North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 3/01/41

   $ 1,130      $ 1,298,076   
    

 

 

 
               27,661,604   

Ohio — 3.0%

    

County of Allen Ohio Hospital Facilities, Refunding RB, Series A:

    

Catholic Healthcare Partners, 5.25%, 6/01/38

     6,125        6,880,335   

Mercy Health, 4.00%, 11/01/44

     4,090        4,214,868   

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

     1,280        1,415,117   

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

     5,450        5,905,238   

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

     1,585        1,726,208   
    

 

 

 
               20,141,766   

Pennsylvania — 1.4%

    

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

     1,240        1,340,688   

Pennsylvania Economic Development Financing Authority, RB:

    

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

     1,660        1,827,029   

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

     3,725        4,153,338   

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

     2,155        2,426,745   
    

 

 

 
               9,747,800   

Rhode Island — 0.9%

    

Tobacco Settlement Financing Corp., Refunding RB, Series B:

    

4.50%, 6/01/45

     5,175        5,245,691   
 

 

                
6    BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2016   


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds   

Par  

(000)

    Value  

Rhode Island (continued)

    

Tobacco Settlement Financing Corp., Refunding RB, Series B (continued):

    

5.00%, 6/01/50

   $ 835      $ 865,853   
    

 

 

 
               6,111,544   

South Carolina — 4.6%

    

South Carolina State Ports Authority, RB:

    

5.25%, 7/01/40

     6,455        7,277,367   

AMT, 5.25%, 7/01/55

     2,525        2,794,897   

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

     12,065        13,890,676   

State of South Carolina Public Service Authority, Refunding RB, Santee Cooper, Series E,
5.25%, 12/01/55

     6,140        6,967,365   
    

 

 

 
               30,930,305   

Tennessee — 0.4%

    

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

     2,660        2,992,606   

Texas — 12.3%

    

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

     4,370        130,663   

Central Texas Regional Mobility Authority,
Refunding RB:

    

Senior Lien, 6.25%, 1/01/46

     4,210        4,871,307   

Sub-Lien, 5.00%, 1/01/33

     700        771,722   

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

     1,150        1,280,916   

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

     385        432,401   

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

     2,970        3,423,846   

City of Houston Texas Airport System, Refunding ARB, Senior Lien, Series A, 5.50%, 7/01/39

     3,000        3,304,380   

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

     16,425        19,169,289   
Municipal Bonds   

Par  

(000)

    Value  

Texas (continued)

    

County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B:

    

7.00%, 1/01/43

   $ 380      $ 452,523   

7.00%, 1/01/48

     500        591,490   

County of Harris Texas-Houston Sports Authority, Refunding RB (NPFGC) (c):

    

3rd Lien, Series A-3, 0.00%, 11/15/37

     26,120        8,195,411   

CAB, Junior Lien, Series H, 0.00%, 11/15/35

     5,000        1,940,050   

CAB, Senior Lien, Series A, 0.00%, 11/15/38

     12,580        4,421,618   

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project,
Series A (c):

    

0.00%, 9/15/40

     9,780        3,393,269   

0.00%, 9/15/41

     5,420        1,784,698   

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

    

6.00%, 8/15/20 (a)

     585        710,061   

6.00%, 8/15/45

     7,345        8,784,547   

Fort Bend County Industrial Development Corp., RB, NRG Energy Project, Series B, 4.75%, 11/01/42

     2,045        2,053,896   

New Hope Cultural Education Facilities Corp., RB, Collegiate Housing Tarleton State University Project, 5.00%, 4/01/35

     355        383,144   

Texas Municipal Gas Acquisition & Supply Corp. III, RB, 5.00%, 12/15/32

     2,835        3,198,050   

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

    

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

     6,000        7,243,560   
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2016    7


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds    Par  
(000)
    Value  

Texas (continued)

    

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

    

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

   $ 5,100      $ 6,007,341   
    

 

 

 
               82,544,182   

Utah — 0.5%

    

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

    

3.25%, 10/15/36

     795        752,634   

3.25%, 10/15/42

     3,010        2,704,967   
    

 

 

 
               3,457,601   

Virginia — 1.5%

    

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

    

5.25%, 1/01/32

     3,155        3,519,939   

6.00%, 1/01/37

     5,695        6,581,768   
    

 

 

 
               10,101,707   

Washington — 1.0%

    

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

     1,475        1,643,858   

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

     4,420        5,238,275   
    

 

 

 
               6,882,133   

Wisconsin — 0.3%

    

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

     1,640        1,861,302   
Total Municipal Bonds — 122.0%              821,272,324   
    
                  

Municipal Bonds Transferred to

Tender Option Bond Trusts (h)

 

Alabama — 0.7%

    

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

     4,548        4,702,086   

Municipal Bonds Transferred to

Tender Option Bond Trusts (h)

   Par  
(000)
    Value  

California — 5.2%

    

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

   $ 5,115      $ 5,708,698   

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

     18,540        20,936,666   

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

     4,500        4,803,570   

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

     3,260        3,732,447   
    

 

 

 
               35,181,381   

Colorado — 1.9%

    

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

    

Series C-3, 5.10%, 4/29/18

     7,600        8,025,980   

Series C-7, 5.00%, 5/01/18

     4,860        5,142,269   
    

 

 

 
               13,168,249   

Connecticut — 2.9%

    

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

    

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

     9,397        9,892,800   

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

     9,366        9,890,541   
    

 

 

 
               19,783,341   

Florida — 1.1%

    

County of Miami-Dade Florida, RB, Water & Sewer System, 5.00%, 10/01/34

     6,629        7,564,883   

Massachusetts — 0.8%

    

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

     4,427        5,203,983   

New Hampshire — 0.7%

    

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

     3,988        4,524,314   
 

 

                
8    BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2016   


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds Transferred to

Tender Option Bond Trusts (h)

  

Par  

(000)

    Value  

New York — 10.6%

    

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

    

Series FF-2, 5.50%, 6/15/40

   $ 3,075      $ 3,508,523   

Series HH, 5.00%, 6/15/31 (i)

     16,395        19,188,216   

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

     3,130        3,643,811   

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

     20,864        24,254,770   

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

     12,611        14,748,902   

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

     5,070        6,000,649   
    

 

 

 
               71,344,871   

North Carolina — 0.9%

    

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

     4,960        5,782,765   

Texas — 3.0%

    

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

     4,900        5,508,482   

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

     6,650        7,724,440   

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

     6,003        7,009,998   
    

 

 

 
               20,242,920   

Utah — 1.2%

    

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

     7,153        7,832,333   

Municipal Bonds Transferred to

Tender Option Bond Trusts (h)

  

Par  

(000)

    Value  

Virginia — 1.7%

    

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

   $ 10,767      $ 11,742,976   

Washington — 3.3%

    

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

     5,459        5,874,734   

State of Washington, GO, Various Purposes, Series E, 5.00%, 2/01/19 (a)

     14,487        16,256,186   
    

 

 

 
               22,130,920   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 34.0%
        229,205,022   

Total Long-Term Investments

(Cost — $959,964,197) — 156.0%

  

  

    1,050,477,346   
    
   
Short-Term Securities    Shares         

BlackRock Liquidity Funds, MuniCash, 0.02% (j)(k)

     15,177,405        15,177,405   

Total Short-Term Securities

(Cost — $15,177,405) — 2.3%

             15,177,405   
Total Investments (Cost — $975,141,602*) — 158.3%        1,065,654,751   
Other Assets Less Liabilities — 1.0%        6,913,841   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (19.1)%

   

    (128,574,042
VMTP Shares, at Liquidation Value — (40.2)%        (270,800,000
    

 

 

 
Net Assets Applicable to Common Shares — 100.0%      $ 673,194,550   
    

 

 

 

 

*   As of January 31, 2016, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

  $ 849,093,286   
 

 

 

 

Gross unrealized appreciation

  $ 99,903,675   

Gross unrealized depreciation

    (11,896,322
 

 

 

 

Net unrealized appreciation

  $ 88,007,353   
 

 

 

 
 
Notes to Schedule of Investments

 

*   Cost for federal income tax purposes.

 

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

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2016    9


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

 

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

 

(c)   Zero-coupon bond.

 

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

 

(e)   Non-income producing security.

 

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

 

(g)   Variable rate security. Rate as of period end.

 

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

 

(i)   All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between October 1, 2016 to November 15, 2019, is $25,981,959.

 

(j)   During the period ended January 31, 2016, investments in issuers considered to be affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate     

Shares Held

at April 30,

2015

       Net
Activity
      

Shares Held

at January 31,

2016

       Income  

FFI Institutional Tax-Exempt Fund

       4,155,414           (4,155,414                $ 1,084   

BlackRock Liquidity Funds: MuniCash

                 15,177,405           15,177,405             

 

(k)   Current yield as of period end.

 

Derivative Financial Instruments Outstanding as of Period End

Financial Futures Contracts

 

Contracts
Short
    Issue   Expiration   Notional
Value
    Unrealized
Depreciation
 
  (67   5-Year U.S. Treasury Note   March 2016   $ 8,085,016      $ (114,283
  (79   10-Year U.S. Treasury Note   March 2016   $ 10,236,672        (220,146
  (40   Long U.S. Treasury Bond   March 2016   $ 6,441,250        (231,339
  (13   U.S. Ultra Treasury Bond   March 2016   $ 2,160,437        (84,501

 

Total

  

  $ (650,269
       

 

 

 

 

Portfolio Abbreviations

 

AGC    Assured Guarantee Corp.
AGM    Assured Guaranty Municipal Corp.
AMT    Alternative Minimum Tax (subject to)
ARB    Airport Revenue Bonds
CAB    Capital Appreciation Bonds
EDA    Economic Development Authority
EDC    Economic Development Corp.
GARB    General Airport Revenue Bonds
GO    General Obligation Bonds
IDA    Industrial Development Authority
LRB    Lease Revenue Bonds

 

 

                
10    BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2016   


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

NPFGC    National Public Finance Guarantee Corp.
RB    Revenue Bonds
S/F    Single-Family

 

Fair Value Hierarchy as of Period End

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

 

   

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

 

   

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

   

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

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

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

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                
Investments:                 

Long-Term Investments1

            $ 1,050,477,346              $ 1,050,477,346   

Short-Term Securities

  $ 15,177,405                          15,177,405   
 

 

 

 

Total

  $ 15,177,405         $ 1,050,477,346              $ 1,065,654,751   
 

 

 

 

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

      

     Level 1        Level 2        Level 3      Total  
Derivative Financial Instruments1             

Liabilities:

                

Interest rate contracts

  $ (650,269                     $ (650,269

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

       

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2016    11


Schedule of Investments (concluded)

  

BlackRock Municipal Income Trust (BFK)

 

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

 

     Level 1        Level 2        Level 3      Total  

Assets:

                

Cash

  $ 156                        $ 156   

Cash pledged for financial futures contracts

    389,800                          389,800   

Liabilities:

                

TOB Trust Certificates

            $ (128,554,112             (128,554,112

VMTP Shares

              (270,800,000             (270,800,000
 

 

 

 

Total

  $ 389,956         $ (399,354,112           $ (398,964,156
 

 

 

 

During the period ended January 31, 2016, there were no transfers between levels.

 

 

                
12    BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2016   


Item 2 – Controls and Procedures

 

2(a) –    The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b) –    There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3 – Exhibits

Certifications – Attached hereto


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

 

BlackRock Municipal Income Trust         
By:   

/s/ John M. Perlowski

           
   John M. Perlowski         
   Chief Executive Officer (principal executive officer) of      
   BlackRock Municipal Income Trust         
Date: March 22, 2016         

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

 

By:   

/s/ John M. Perlowski

           
   John M. Perlowski         
   Chief Executive Officer (principal executive officer) of      
   BlackRock Municipal Income Trust         
Date: March 22, 2016      
By:   

/s/ Neal J. Andrews

           
   Neal J. Andrews         
   Chief Financial Officer (principal financial officer) of      
   BlackRock Municipal Income Trust         
Date: March 22, 2016