N-Q 1 d565450dnq.htm BLACKROCK MUNICIPAL INCOME TRUST II BLACKROCK MUNICIPAL INCOME TRUST II

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21126

Name of Fund: BlackRock Municipal Income Trust II (BLE)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

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

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

Date of fiscal year end: 08/31/2013

Date of reporting period: 05/31/2013

Item 1    –    Schedule of Investments

Schedule of Investments May 31, 2013 (Unaudited)    BlackRock Municipal Income Trust II (BLE)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

Alabama – 0.4%

      

County of Jefferson Alabama, RB, Series A,

      

5.25%, 1/01/19

    $ 1,620       $ 1,615,205   
     

 

 

  

Arizona – 1.7%

      

Salt Verde Financial Corp., RB, Senior,

      

5.00%, 12/01/32

      5,635         6,271,079   
     

 

 

  

California – 9.7%

      

ABAG Finance Authority for Nonprofit Corps., Refunding RB, Odd Fellows Home of California, Series A,

      

5.00%, 4/01/42

      1,000         1,063,850   

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, Series F-1,

      

5.63%, 4/01/44

      2,480         2,801,805   

California County Tobacco Securitization Agency, RB, CAB, Stanislaus, Sub-Series C,

      

11.08%, 6/01/55(a)

      9,710         104,674   

California Health Facilities Financing Authority, RB:

      

Stanford Hospital Clinics, Series A, 5.00%, 8/15/51

      1,290         1,408,177   

Sutter Health, Series B, 6.00%, 8/15/42

      3,500         4,168,185   

California HFA, RB, Home Mortgage, Series K, AMT,

      

5.50%, 2/01/42

      1,365         1,413,225   

California Pollution Control Financing Authority, RB:

      

Poseidon Resources (Channel Side) LP Desalination, AMT, 5.00%, 7/01/37(b)

      1,120         1,127,269   

Poseidon Resources (Channel Side) LP Desalination, AMT, 5.00%, 11/21/45(b)

      2,795         2,795,084   

San Diego County Desalination Project Pipeline, 5.00%, 11/21/45

      1,340         1,381,312   

California State Public Works Board, RB, Various Capital Projects, Sub-Series I-1,

      

6.38%, 11/01/34

      1,280         1,570,496   

City of Los Angeles Department of Airports, Refunding RB, Series A,

      

5.25%, 5/15/39

      860         979,678   

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

      

4.68%, 8/01/33

      3,000         1,180,200   

4.99%, 8/01/43

      2,500         565,200   

State of California, GO, Various Purpose:

      

6.00%, 3/01/33

      1,760         2,150,139   

6.50%, 4/01/33

      10,670         13,135,623   
     

 

 

  
        35,844,917   
     

 

 

  

Colorado – 2.1%

      

Colorado Health Facilities Authority, Refunding RB:

      

Catholic Healthcare, Series A, 5.50%, 7/01/34

      2,330         2,679,710   

Evangelical Lutheran Good Samaritan Society Project, 5.00%, 12/01/42

      1,920         2,007,763   

Colorado State Board of Governors, Refunding RB, Series A,

      

5.00%, 3/01/43

      1,280         1,511,398   

Park Creek Metropolitan District, Refunding RB, Senior, Limited Tax, Property Tax, Series A,

      

5.50%, 12/01/37

      1,375         1,436,724   
     

 

 

  
        7,635,595   
     

 

 

  

Connecticut – 0.4%

      

Connecticut State Health & Educational Facility Authority, RB, Ascension Health Senior Credit,

      

5.00%, 11/15/40

      1,505         1,645,522   
     

 

 

  

Delaware – 1.6%

      

County of Sussex Delaware, RB, NRG Energy, Inc. Indian River Project,

      

6.00%, 10/01/40

      1,240         1,388,230   

Delaware State EDA, RB, Exempt Facilities, Indian River Power,

      

5.38%, 10/01/45

      4,430         4,709,090   
     

 

 

  
        6,097,320   
     

 

 

  

District of Columbia – 5.0%

      

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

      

6.50%, 5/15/33

      3,250         3,864,185   

6.75%, 5/15/40

      11,500         11,701,135   

Metropolitan Washington Airports Authority, Refunding RB, First Senior Lien, Series A:

      

5.00%, 10/01/39

      550         600,721   

5.25%, 10/01/44

      2,000         2,199,560   
     

 

 

  
        18,365,601   
     

 

 

  

 

 

    BLACKROCK MUNICIPAL INCOME TRUST II    MAY 31, 2013   1

Schedule of Investments (continued)    BlackRock Municipal Income Trust II (BLE)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

Florida – 5.4%

      

City of Leesburg Florida, RB, Leesburg Regional Medical Center Project,

      

5.50%, 7/01/32

    $ 1,000       $ 1,000,820   

County of Miami-Dade Florida, ARB, Miami International Airport, Series A, AMT (AGC),

      

5.25%, 10/01/38

      2,855         3,050,682   

County of Miami-Dade Florida, Refunding ARB, Miami International Airport, Series A-1,

      

5.38%, 10/01/41

      1,255         1,394,405   

Jacksonville Port Authority, Refunding RB, AMT,

      

5.00%, 11/01/38

      1,665         1,762,353   

Miami Beach Health Facilities Authority, RB, Mount Sinai Medical Center of Florida,

      

6.75%, 11/15/21

      3,365         3,609,265   

Mid-Bay Bridge Authority, RB, Series A,

      

7.25%, 10/01/40

      2,500         3,106,925   

Stevens Plantation Community Development District, Special Assessment Bonds, Series A,

      

7.10%, 5/01/35(c)(d)

      1,895         1,422,652   

Tampa-Hillsborough County Expressway Authority, Refunding RB:

      

Series A, 5.00%, 7/01/37

      1,495         1,630,477   

Series B, 5.00%, 7/01/42

      2,735         2,965,342   
     

 

 

  
     19,942,921   
     

 

 

  

Georgia – 0.3%

      

DeKalb Private Hospital Authority, Refunding RB, Children’s Healthcare,

      

5.25%, 11/15/39

      915         1,005,448   
     

 

 

  

Hawaii – 0.5%

      

State of Hawaii Harbor System, RB, Series A,

      

5.25%, 7/01/30

      1,480         1,682,952   
     

 

 

  

Illinois – 14.0%

      

Chicago Board of Education, GO, Series A,

      

5.50%, 12/01/39

      2,300         2,558,796   

Chicago Transit Authority, RB, Sales Tax Receipts,

      

5.25%, 12/01/40

      1,150         1,277,213   

City of Chicago Illinois, ARB, O’Hare International Airport General Third Lien:

      

Series A, 5.75%, 1/01/39

      5,000         5,736,300   

Series C, 6.50%, 1/01/41

      6,430         8,171,051   

City of Chicago Illinois, GO, Project, Series A,

      

5.00%, 1/01/33

      4,940         5,347,994   

City of Chicago Illinois, Refunding RB, Sales Tax, Series A,

      

5.25%, 1/01/38

      895         999,679   

Illinois Finance Authority, Refunding RB:

      

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

      1,060         1,168,968   

Ascension Health, Series A, 5.00%, 11/15/42

      1,925         2,106,701   

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

      1,750         1,954,785   

Friendship Village Schaumburg, Series A, 5.63%, 2/15/37

      455         459,964   

Illinois Sports Facilities Authority, RB, State Tax Supported (AMBAC),

      

5.50%, 6/15/30

      10,500         11,359,845   

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

      

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

      3,430         3,639,539   

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

      2,725         2,890,707   

Railsplitter Tobacco Settlement Authority, RB:

      

5.50%, 6/01/23

      1,470         1,755,827   

6.00%, 6/01/28

      1,255         1,496,412   

State of Illinois, RB, Build Illinois, Series B,

      

5.25%, 6/15/34

      685         767,371   
     

 

 

  
     51,691,152   
     

 

 

  

Indiana – 4.4%

      

Carmel Redevelopment Authority, Refunding RB, Multipurpose, Series A:

      

4.00%, 8/01/35

      1,230         1,246,937   

4.00%, 2/01/38

      1,975         1,991,531   

Indiana Finance Authority, RB:

      

First Lien, CWA Authority Project, Series A, 5.25%, 10/01/38

      1,720         1,949,138   

Private Activity Bonds, Ohio River Bridges East End Crossing Project, Series A, 5.00%, 7/01/48

      1,610         1,647,078   

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

      485         502,077   

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

      915         1,000,919   

 

2   BLACKROCK MUNICIPAL INCOME TRUST II    MAY 31, 2013    

Schedule of Investments (continued)    BlackRock Municipal Income Trust II (BLE)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

Indiana (concluded)

      

Indiana Finance Authority, Refunding RB, Community Health Network, Series A,

      

5.00%, 5/01/42

    $ 2,050       $ 2,216,398   

Indiana Health Facility Financing Authority, Refunding RB, Methodist Hospital, Inc.,

      

5.38%, 9/15/22

      3,675         3,680,512   

Indiana Municipal Power Agency, RB, Series B,

      

6.00%, 1/01/39

      1,200         1,411,416   

Indianapolis Local Public Improvement Bond Bank, RB, Series A,

      

5.00%, 1/15/36

      430         475,258   
     

 

 

  
        16,121,264   
     

 

 

  

Iowa – 2.1%

      

Iowa Finance Authority, RB:

      

Alcoa, Inc. Project, 4.75%, 8/01/42

      1,255         1,186,791   

Iowa Fertilizer Company Project, 5.50%, 12/01/22

      2,550         2,655,392   

Iowa Fertilizer Company Project, 5.25%, 12/01/25

      500         514,645   

Iowa Finance Authority, Refunding RB, Iowa Fertilizer Company Project,

      

5.00%, 12/01/19

      1,040         1,071,387   

Iowa Student Loan Liquidity Corp., Refunding RB, Series A-1, AMT,

      

5.15%, 12/01/22

      1,935         2,213,388   
     

 

 

  
        7,641,603   
     

 

 

  

Kansas – 0.5%

      

Kansas Development Finance Authority, Refunding RB, Sisters of Leavenworth, Series A,

      

5.00%, 1/01/40

      1,755         1,876,586   
     

 

 

  

Kentucky – 0.3%

      

Kentucky Economic Development Finance Authority, RB, Owensboro Medical Health System, Series A,

      

6.38%, 6/01/40

      1,105         1,282,132   
     

 

 

  

Louisiana – 3.2%

      

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp., Series A-1,

      

6.50%, 11/01/35

      3,650         4,333,499   

Parish of St. John the Baptist Louisiana, RB, Marathon Oil Corp., Series A,

      

5.13%, 6/01/37

      7,290         7,684,025   
     

 

 

  
        12,017,524   
     

 

 

  

Maine – 0.5%

      

Maine State Turnpike Authority, RB, Series A,

      

5.00%, 7/01/42

      1,615         1,791,455   
     

 

 

  

Maryland – 1.2%

      

Maryland EDC, RB, Transportation Facilities Project, Series A,

      

5.75%, 6/01/35

      475         536,598   

Maryland EDC, Refunding RB, CNX Marine Terminals, Inc.,

      

5.75%, 9/01/25

      1,000         1,106,140   

Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community,

      

6.25%, 1/01/41

      2,400         2,695,056   
     

 

 

  
        4,337,794   
     

 

 

  

Massachusetts – 0.3%

      

Massachusetts Health & Educational Facilities Authority, Refunding RB, Partners Healthcare, Series J1,

      

5.00%, 7/01/39

      955         1,030,913   
     

 

 

  

Michigan – 2.0%

      

City of Detroit Michigan, RB, Water Supply System, Series A, Senior Lien,

      

5.25%, 7/01/41

      3,355         3,511,075   

Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital,

      

5.50%, 5/15/36

      1,500         1,643,040   

Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, Series A,

      

5.25%, 11/15/46

      2,305         2,407,503   
     

 

 

  
        7,561,618   
     

 

 

  

Missouri – 1.9%

      

370/Missouri Bottom Road/Taussig Road Transportation Development District, RB,

      

7.20%, 5/01/33

      6,000         6,004,920   

 

    BLACKROCK MUNICIPAL INCOME TRUST II    MAY 31, 2013   3

Schedule of Investments (continued)    BlackRock Municipal Income Trust II (BLE)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

Missouri (concluded)

      

Missouri State Health & Educational Facilities Authority, RB, Senior Living Facilities, Lutheran Senior Services,

      

5.50%, 2/01/42

    $ 1,135       $ 1,206,392   
     

 

 

  
        7,211,312   
     

 

 

  

Multi-State – 3.8%

      

Centerline Equity Issuer Trust(b)(e):

      

5.75%, 5/15/15

      1,000         1,078,160   

6.00%, 5/15/15

      5,000         5,411,850   

6.00%, 5/15/19

      3,500         4,115,720   

6.30%, 5/15/19

      3,000         3,571,290   
     

 

 

  
        14,177,020   
     

 

 

  

Nebraska – 1.6%

      

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

      

5.25%, 9/01/37

      895         989,745   

5.00%, 9/01/42

      1,570         1,686,714   

Lancaster County Hospital Authority No 1, Refunding RB, Immanuel Obligation Group,

      

5.63%, 1/01/40

      1,245         1,375,438   

Sarpy County Hospital Authority No. 1, Immanuel Obligation Group,

      

5.63%, 1/01/40

      1,635         1,778,504   
     

 

 

  
        5,830,401   
     

 

 

  

Nevada – 0.7%

      

County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project,

      

5.00%, 5/15/29

      2,465         2,662,693   
     

 

 

  

New Jersey – 5.4%

      

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

      

5.25%, 9/15/29

      2,130         2,258,482   

New Jersey EDA, Refunding RB:

      

Cigarette Tax, 5.00%, 6/15/25

      610         683,981   

Kapkowski Road Landfill Project, 6.50%, 4/01/28

      7,475         8,842,551   

New Jersey State Turnpike Authority, RB, Series A:

      

5.00%,1/01/38

      1,405         1,523,329   

5.00%,1/01/43

      2,160         2,323,080   

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A,

      

5.00%, 6/15/42

      4,000         4,304,000   
     

 

 

  
        19,935,423   
     

 

 

  

New York – 4.3%

      

Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A,

      

7.00%, 5/01/35(c)(d)

      985         147,612   

Metropolitan Transportation Authority, Refunding RB, Series D,

      

5.25%, 11/15/40

      1,325         1,459,541   

New York City Industrial Development Agency, RB, American Airlines, Inc., JFK International Airport, AMT,

      

7.75%, 8/01/31(c)(d)(f)

      6,700         7,726,172   

New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project,

      

6.38%, 7/15/49

      1,335         1,580,840   

New York State Thruway Authority, Refunding RB, Series I,

      

5.00%, 1/01/42

      1,500         1,630,740   

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

      

6.00%,12/01/36

      1,410         1,641,776   

6.00%,12/01/42

      1,375         1,596,787   
     

 

 

  
        15,783,468   
     

 

 

  

North Carolina – 4.7%

      

Gaston County Industrial Facilities & Pollution Control Financing Authority, RB, Exempt Facilities, National Gypsum Co. Project, AMT,

      

5.75%, 8/01/35

      6,500         6,324,890   

North Carolina Capital Facilities Finance Agency, Refunding RB, Duke Energy Carolinas Project, Series B,

      

4.63%, 11/01/40

      8,930         9,396,146   

North Carolina Medical Care Commission, RB, Duke University Health System, Series A,

      

5.00%, 6/01/42

      1,525         1,642,638   
     

 

 

  
        17,363,674   
     

 

 

  

 

 

4   BLACKROCK MUNICIPAL INCOME TRUST II    MAY 31, 2013    

Schedule of Investments (continued)    BlackRock Municipal Income Trust II (BLE)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

Ohio – 2.3%

      

County of Allen Ohio, Refunding RB, Catholic Healthcare Partners, Series A,

      

5.25%, 6/01/38

    $ 3,405       $ 3,752,140   

County of Hamilton Ohio, RB, Christ Hospital Project,

      

5.00%, 6/01/42

      1,640         1,721,180   

County of Montgomery Ohio, Refunding RB, Catholic Healthcare, Series A,

      

5.00%, 5/01/39

      3,025         3,240,440   
     

 

 

  
     8,713,760   
     

 

 

  

Oregon – 0.1%

      

City of Tigard Washington County Oregon, Refunding RB, Water System,

      

5.00%, 8/01/37

      275         308,470   
     

 

 

  

Pennsylvania – 1.3%

      

Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A,

      

5.00%, 5/01/42

      2,500         2,624,600   

Pennsylvania Economic Development Financing Authority, RB, Aqua Pennsylvania, Inc. Project,

      

5.00%, 11/15/40

      2,065         2,248,785   
     

 

 

  
     4,873,385   
     

 

 

  

Puerto Rico – 5.4%

      

Puerto Rico Sales Tax Financing Corp., RB:

      

CAB, Series A, 5.78%, 8/01/33(a)

      13,600         4,310,112   

CAB, Series A, 5.81%, 8/01/34(a)

      5,500         1,636,360   

CAB, Series A, 5.85%, 8/01/35(a)

      14,055         3,915,020   

CAB, Series A, 5.89%, 8/01/36(a)

      11,875         3,094,506   

First Sub-Series A, 6.50%, 8/01/44

      6,100         6,925,696   
     

 

 

  
     19,881,694   
     

 

 

  

South Carolina – 1.8%

      

South Carolina Jobs EDA, Refunding RB, Palmetto Health Alliance, Series A,

      

6.25%, 8/01/31

      2,640         2,664,710   

South Carolina State Ports Authority, RB,

      

5.25%, 7/01/40

      3,595         3,948,712   
     

 

 

  
     6,613,422   
     

 

 

  

South Dakota – 0.3%

      

South Dakota Health and Educational Facilities Authority, RB, Series E,

      

5.00%, 11/01/42

      1,165         1,260,379   
     

 

 

  

Tennessee – 0.8%

      

Metropolitan Government Nashville & Davidson County Health & Educational Facilities, Refunding RB, Vanderbilt University, Series D,

      

3.25%, 10/01/37

      2,990         2,692,375   

Rutherford County Health & Educational Facilities Board, RB, Ascension Health, Series C,

      

5.00%, 11/15/47

      230         255,059   
     

 

 

  
     2,947,434   
     

 

 

  

Texas – 18.9%

      

Brazos River Authority, RB, TXU Electric, Series A, AMT,

      

8.25%, 10/01/30

      2,400         198,000   

Central Texas Regional Mobility Authority, Refunding RB:

      

Senior Lien, 6.25%, 1/01/46

      2,350         2,734,578   

Senior Lien, Series A, 5.00%, 1/01/33

      110         119,594   

Senior Lien, Series A, 5.00%, 1/01/43

      205         218,655   

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

      390         409,367   

Sub-Lien, 5.00%, 1/01/42

      345         357,210   

City of Dallas Texas Waterworks & Sewer System, Refunding RB,

      

5.00%, 10/01/35

      1,650         1,841,549   

City of Houston Texas Airport System, Refunding RB, Senior Lien, Series A,

      

5.50%, 7/01/39

      1,675         1,916,468   

City of Houston Texas Utility System, Refunding RB, Combined, First Lien, Series A (AGC),

      

6.00%, 11/15/35

      9,145         10,944,919   

Dallas/Fort Worth International Airport, Refunding RB, Series E, AMT,

      

5.00%, 11/01/35

      3,750         3,914,662   

Fort Bend County Industrial Development Corp., RB:

      

NRG Energy Inc. Project, Series A, 4.75%, 5/01/38

      1,400         1,412,656   

Series B, 4.75%, 11/01/42

      1,605         1,613,410   

 

    BLACKROCK MUNICIPAL INCOME TRUST II    MAY 31, 2013   5

Schedule of Investments (continued)    BlackRock Municipal Income Trust II (BLE)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

Texas (concluded)

      

Gulf Coast Waste Disposal Authority, Refunding RB, Series A, AMT,

      

6.10%, 8/01/24

    $ 5,000       $ 5,019,950   

Harris County-Houston Sports Authority, Refunding RB, Third Lien, Series A-3 (NPFGC),

      

5.88%, 11/15/36(a)

      25,375         6,528,987   

Matagorda County Navigation District No 1, Refunding RB, AEP Texas Central Co. Project, Series 2008-1,

      

4.00%, 6/01/30(g)

      1,170         1,145,945   

Midland County Fresh Water Supply District No 1, RB, City of Midland Projects, Series A:

      

4.61%, 9/15/37(a)

      7,605         2,512,920   

5.00%, 9/15/40

      890         989,822   

North Texas Tollway Authority, Refunding RB, Toll Second Tier, Series F,

      

6.13%, 1/01/31

      6,790         7,444,760   

San Antonio Energy Acquisition Public Facility Corp., RB, Gas Supply,

      

5.50%, 8/01/24

      3,600         4,260,852   

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

      

6.00%, 8/15/45

      4,410         5,189,467   

Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Scott & White Healthcare,

      

5.00%, 8/15/43

      390         424,098   

Texas Municipal Gas Acquisition & Supply Corp. III, RB, Gas Supply,

      

5.00%, 12/15/29

      2,055         2,188,082   

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

      

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

      3,000         3,634,710   

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

      3,000         3,573,150   

Texas Transportation Commission, Refunding RB, Central Texas Turnpike System, First Tier, Series A,

      

5.00%, 8/15/41

      1,310         1,395,425   
     

 

 

  
        69,989,236   
     

 

 

  

Utah – 1.3%

      

County Of Utah, RB, IHC Health Services, Inc.,

      

5.00%, 5/15/43

      2,190         2,419,556   

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

      

3.25%, 10/15/36

      1,085         948,811   

3.25%, 10/15/42

      1,660         1,392,557   
     

 

 

  
        4,760,924   
     

 

 

  

Virginia – 2.2%

      

City of Norfolk Virginia Parking System, Refunding RB, Series B (AMBAC),

      

5.50%, 2/01/31

      1,240         1,241,178   

Route 460 Funding Corp., RB, Senior Lien, Series A,

      

5.13%, 7/01/49

      1,340         1,405,432   

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

      

5.25%, 1/01/32

      1,755         1,877,990   

6.00%, 1/01/37

      2,000         2,221,580   

5.50%, 1/01/42

      1,255         1,341,884   
     

 

 

  
        8,088,064   
     

 

 

  

Washington – 1.8%

      

Bellingham Washington Water & Sewer, RB,

      

5.00%, 8/01/36

      5,050         5,637,012   

Washington Health Care Facilities Authority, Refunding RB, Providence Health & Services, Series A,

      

5.00%, 10/01/42

      1,100         1,203,752   
     

 

 

  
        6,840,764   
     

 

 

  

Wisconsin – 2.9%

      

Wisconsin Health & Educational Facilities Authority, RB:

      

Ascension Health Senior Credit Group, 5.00%, 11/15/30

      1,790         2,025,403   

Ascension Health Senior Credit Group, 5.00%, 11/15/33

      910         1,003,948   

Aurora Health Care, 6.40%, 4/15/33

      3,930         3,939,039   

WPPI Energy, Refunding RB, Power Supply System, Series A:

      

5.00%, 7/01/29

      410         466,342   

5.00%, 7/01/30

      515         582,949   

5.00%, 7/01/31

      1,125         1,266,289   

5.00%, 7/01/37

      1,365         1,486,772   
     

 

 

  
        10,770,742   
     

 

 

  

 

6   BLACKROCK MUNICIPAL INCOME TRUST II    MAY 31, 2013    

Schedule of Investments (continued)    BlackRock Municipal Income Trust II (BLE)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

Wyoming – 1.5%

      

County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project,

      

5.25%, 7/15/26

    $ 3,355       $ 3,737,940   

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

      

5.50%,1/01/33

      800         899,616   

5.50%,1/01/38

      750         843,390   
     

 

 

  
        5,480,946   
     

 

 

  

Total Municipal Bonds – 118.6%

         438,951,812   
     

 

 

  

Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts(h)

      

Alabama – 0.7%

      

Alabama Special Care Facilities Financing Authority-Birmingham, Refunding RB, Ascension Health Senior Credit Group, Series C-2,

      

5.00%, 11/15/36

      2,519         2,742,631   
     

 

 

  

Arizona – 0.8%

      

Salt River Project Agricultural Improvement & Power District, RB, Series A,

      

5.00%, 1/01/38

      2,630         2,943,027   
     

 

 

  

California — 7.3%

      

California Educational Facilities Authority, RB, University of Southern California, Series B,

      

5.25%, 10/01/39(i)

      2,850         3,282,373   

City of Los Angeles California Department of Airports, Refunding RB, Senior, Los Angeles International Airport, Series A,

      

5.00%, 5/15/40

      6,500         7,202,894   

Los Angeles Community College District California, GO, Election of 2001, Series A (AGM),

      

5.00%, 8/01/32

      2,530         2,813,537   

San Diego Community College District California, GO, Election of 2002,

      

5.25%, 8/01/33

      1,840         2,180,152   

San Francisco City & County Public Utilities Commission, RB, Series B,

      

5.00%, 11/01/39

      10,335         11,383,486   
     

 

 

  
        26,862,442   
     

 

 

  

Colorado – 2.0%

      

Colorado Health Facilities Authority, RB:

      

Catholic Health, Series C-7, AGM, 5.00%, 9/01/36

      2,710         2,871,597   

Series C-3, 5.10%, 10/01/41

      4,230         4,506,981   
     

 

 

  
        7,378,578   
     

 

 

  

Connecticut – 3.1%

      

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

      

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

      5,179         5,755,125   

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

      5,143         5,676,419   
     

 

 

  
        11,431,544   
     

 

 

  

Florida – 1.5%

      

County of Miami-Dade Florida, RB, Water & Sewer System (AGM),

      

5.00%, 10/01/39

      5,001         5,488,590   
     

 

 

  

Georgia – 1.4%

      

Private Colleges & Universities Authority, Refunding RB,

      

5.00%, 9/01/38

      4,638         5,143,141   
     

 

 

  

Illinois – 1.7%

      

City of Chicago Illinois Waterworks, Refunding RB, Second Lien,

      

5.00%, 11/01/42

      3,119         3,415,078   

Illinois State Toll Highway Authority, RB, Series A,

      

5.00%, 1/01/38

      2,520         2,769,429   
     

 

 

  
        6,184,507   
     

 

 

  

Indiana – 0.4%

      

Indianapolis Local Public Improvement Bond Bank, RB, Series A,

      

5.00%, 1/15/40

      1,381         1,511,943   
     

 

 

  

Maryland – 1.3%

      

Maryland Health & Higher Educational Facilities Authority, RB, Series B, Ascension Health,

      

5.00%, 11/15/51

      4,560         4,986,884   
     

 

 

  

Massachusetts – 2.4%

      

Massachusetts School Building Authority, RB, Sales Tax, Senior Series B,

      

5.00%, 10/15/41

      4,950         5,549,494   

 

    BLACKROCK MUNICIPAL INCOME TRUST II    MAY 31, 2013   7

Schedule of Investments (continued)    BlackRock Municipal Income Trust II (BLE)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (h)

    Par
(000)		      Value  

Massachusetts (Concluded)

      

Massachusetts Water Resources Authority, Refunding RB, General, Series A,

      

5.00%, 8/01/41

    $ 3,150       $ 3,479,427   
     

 

 

  
     9,028,921   
     

 

 

  

Michigan – 0.9%

      

Detroit Water and Sewerage Department, Refunding RB, Senior Lien, Series A:

      

5.00%, 7/01/32

      1,700         1,789,943   

5.25%, 7/01/39

      1,462         1,557,433   
     

 

 

  
        3,347,376   
     

 

 

  

New Hampshire – 0.7%

      

New Hampshire Health & Education Facilities Authority, RB, Dartmouth College,

      

5.25%, 6/01/39(i)

      2,219         2,573,084   
     

 

 

  

New Jersey – 0.8%

      

New Jersey Transportation Trust Fund Authority, RB, Series B,

      

5.25%, 6/15/36(i)

      2,680         2,986,244   
     

 

 

  

New York – 13.1%

      

Hudson New York Yards Infrastructure Corp., RB, Series A,

      

5.75%, 2/15/47

      1,750         2,018,399   

New York City Municipal Water Finance Authority, Refunding RB:

      

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

      9,149         10,356,412   

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

      1,710         1,996,908   

New York City Transitional Finance Authority, RB, Fiscal 2012, Series E,

      

5.00%, 2/01/42

      2,679         2,964,879   

New York Liberty Development Corp., RB, 1 World Trade Center Port Authority,

      

5.25%, 12/15/43

      11,670         13,101,610   

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project,

      

5.75%, 11/15/51

      7,040         8,162,669   

New York State Dormitory Authority, ERB, Series F,

      

5.00%, 3/15/35

      9,284         9,859,992   
     

 

 

  
        48,460,869   
     

 

 

  

Texas – 2.1%

  

Harris County Texas Metropolitan Transit Authority, Refunding RB, Sales & Tax Bonds, Series A,

      

5.00%, 11/01/41

      3,720         4,083,816   

University of Texas System, RB,

      

5.00%, 8/15/43

      3,359         3,794,332   
     

 

 

  
     7,878,148   
     

 

 

  

Utah – 1.2%

      

City of Riverton Utah, RB,

      

5.00%, 8/15/41

      3,959         4,306,672   
     

 

 

  

Virginia – 1.8%

      

University of Virginia, Refunding RB, General,

      

5.00%, 6/01/40

      5,909         6,585,856   
     

 

 

  

Washington – 3.4%

      

Central Puget Sound Regional Transit Authority, RB, Series A (AGM),

      

5.00%, 11/01/32

      3,029         3,372,810   

State of Washington, GO, Various Purpose, Series E,

      

5.00%, 2/01/34

      8,113         9,340,852   
     

 

 

  
     12,713,662   
     

 

 

  

Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts – 46.6%

  

      172,554,119   
     

 

 

  

Total Long-Term Investments
(Cost – $569,501,741) – 165.2%

   

      611,505,931   
     

 

 

  

Short-Term Securities

              

Municipal Bonds – 0.3%

      

Mississippi Business Finance Corp., RB, VRDN, Series A,

      

0.06%(j)

      1,100,000         1,100,000   
     

 

 

  
      Shares         

Money Market Funds – 1.2%

      

FFI Institutional Tax-Exempt Fund,

      

0.03%(k)(l)

      4,469,542         4,469,542   
     

 

 

  

Total Short-Term Securities
(Cost – $5,569,542) – 1.5%

   

      5,569,542   
     

 

 

  

 

 

8   BLACKROCK MUNICIPAL INCOME TRUST II    MAY 31, 2013    

Schedule of Investments (continued)    BlackRock Municipal Income Trust II (BLE)
   (Percentages shown are based on Net Assets)

 

     Value  

Total Investments (Cost – $575,071,283*) – 166.7%

    $ 617,075,473   

Other Assets Less Liabilities – 1.3%

      4,491,031   

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable – (27.1%)

      (100,168,051 ) 

VMTP Shares, at Liquidation Value – (40.9%)

      (151,300,000 ) 
  

 

 

  

Net Assets Applicable to Common Shares – 100.0%

    $ 370,098,453   
  

 

 

  

 

*       As of May 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

    $ 475,126,739   
  

 

 

  

Gross unrealized appreciation

    $ 48,355,630   

Gross unrealized depreciation

      (6,531,278 ) 
  

 

 

  

Net unrealized appreciation

    $ 41,824,352   
  

 

 

  

Notes to Schedule of Investments

 

(a) Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

(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) Non-income producing security.

 

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

 

(e) Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity.

 

(f) Variable rate security. Rate shown is as of report date.

 

(g) When-issued security. Unsettled when-issued transactions were as follows:

 

Counterparty

    Value      Unrealized
Depreciation		  

Morgan Stanley

    $ 1,145,945       $ (24,055 ) 

 

(h) 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.

 

(i) All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from October 1, 2016 to June 15, 2019, is $11,931,880.

 

(j) Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand.

 

(k) Investments in issuers considered to be an affiliate of the Trust during the period ended May 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
August 31,
2012		      Net Activity     Shares Held at
May 31,
2013		      Income  

FFI Institutional Tax-Exempt Fund

      15,208,474         (10,738,932 )      4,469,542       $ 641   

 

(l) Represents the current yield as of report date.

 

    BLACKROCK MUNICIPAL INCOME TRUST II    MAY 31, 2013   9

Schedule of Investments (continued)    BlackRock Municipal Income Trust II (BLE)
  

 

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.   EDC   Economic Development Corp.
 

AGM

   Assured Guaranty Municipal Corp.  

ERB

   Education Revenue Bonds
 

AMBAC

   American Municipal Bond Assurance Corp.  

GO

   General Obligation Bonds
 

AMT

   Alternative Minimum Tax (subject to)  

HFA

   Housing Finance Agency
 

ARB

   Airport Revenue Bonds  

NPFGC

   National Public Finance Guarantee Corp.
 

CAB

   Capital Appreciation Bonds  

RB

   Revenue Bonds
 

EDA

   Economic Development Authority  

VRDN

   Variable Rate Demand Notes

 

•  

Financial futures contracts as of May 31, 2013 were as follows:

 

Contracts Sold   

Issue

    Exchange    Expiration    Notional Value      Unrealized
Appreciation		  
(226)    10-Year US Treasury Note    Chicago Board of Trade    September 2013    $ 29,203,438       $ 287,444   

 

•

•  

Fair Value Measurements – Various inputs are used in determining the fair value of investments and derivative financial instruments. 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 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.

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 and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument 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, please refer to the Trust’s most recent financial statements as contained in its semi-annual report.

 

10   BLACKROCK MUNICIPAL INCOME TRUST II    MAY 31, 2013    

Schedule of Investments (concluded)    BlackRock Municipal Income Trust II (BLE)
  

 

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of May 31, 2013:

 

     Level 1      Level 2      Level 3      Total  

Assets:

            

Investments:

            

Long-Term Investments1

    $ –       $ 611,505,931         –       $ 611,505,931   

Short-Term Securities

      4,469,542         1,100,000         –         5,569,542   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 4,469,542       $ 612,605,931         –       $ 617,075,473   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

1 

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

 

                                                                                   
     Level 1      Level 2      Level 3      Total  

Derivative Financial Instruments2

            

Assets:

            

Interest rate contracts

    $ 287,444         –         –       $ 287,444   

 

2

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

Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of May 31, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

 

     Level 1      Level 2     Level 3      Total  

Assets:

           

Cash pledged for financial futures contracts

    $ 359,000         –        –       $ 359,000   

Liabilities:

           

TOB trust certificates

      –       $ (100,124,382 )      –         (100,124,382 ) 

VMTP shares

      –         (151,300,000 )      –         (151,300,000 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 359,000       $ (251,424,382 )      –       $ (251,064,382 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

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

 

 

    BLACKROCK MUNICIPAL INCOME TRUST II    MAY 31, 2013   11

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

Certifications – Attached hereto

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

 

BlackRock Municipal Income Trust II  
By:   /s/ John M. Perlowski    
  John M. Perlowski    
 

Chief Executive Officer (principal executive officer) of

BlackRock Municipal Income Trust II

Date: July 25, 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

BlackRock Municipal Income Trust II

Date: July 25, 2013    
By:   /s/ Neal J. Andrews    
  Neal J. Andrews    
 

Chief Financial Officer (principal financial officer) of

BlackRock Municipal Income Trust II

Date: July 25, 2013