N-Q 1 d301973dnq.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: 08/31/2017

Date of reporting period: 11/30/2016

 

Item 1 – Schedule of Investments

 

Schedule of Investments November 30, 2016 (Unaudited)

   

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

Alabama — 3.3%

     

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

    $ 1,620      $ 1,626,982   

County of Jefferson Alabama Sewer, Refunding RB:

     

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

      540        590,441   

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

      1,320        1,463,907   

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

      3,220        3,899,002   

Lower Alabama Gas District, RB, Series A:

     

5.00%, 9/01/34

      1,945        2,117,794   

5.00%, 9/01/46

      1,555        1,700,641   
    

 

 

  
               11,398,767   

Arizona — 2.9%

     

City of Phoenix Arizona IDA, RB, Legacy Traditional Schools Projects, Series A, 5.00%, 7/01/46 (a)

      1,825        1,715,756   

Salt River Project Agricultural Improvement & Power District, Refunding RB, Series A, 5.00%, 1/01/38 (b)

      780        882,913   

Salt Verde Financial Corp., RB, Senior:

     

5.00%, 12/01/32

      5,635        6,310,524   

5.00%, 12/01/37

      1,000        1,103,510   
    

 

 

  
               10,012,703   

California — 11.2%

     

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

      2,480        2,720,262   

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

      3,500        3,953,670   

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

      1,365        1,498,770   

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

     

5.25%, 8/15/39

      160        177,170   

5.25%, 8/15/49

      395        434,322   
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

     

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

    $ 1,655      $ 1,760,821   

California Statewide Communities Development Authority, RB, Loma Linda University Medical Center,
Series A (a):

     

5.00%, 12/01/41

      565        561,808   

5.00%, 12/01/46

      685        675,567   

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

     

Senior, 5.00%, 5/15/40

      6,500        7,052,955   

5.25%, 5/15/39

      860        925,713   

City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A,
6.25%, 10/01/38

      380        446,937   

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

     

0.00%, 8/01/33

      3,000        1,510,260   

0.00%, 8/01/43

      2,500        711,125   

State of California, GO, Various Purposes:

     

6.00%, 3/01/33

      1,760        1,990,190   

6.50%, 4/01/33

      10,645        11,785,612   

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

     

Series I, 5.00%, 11/01/38

      825        913,803   

Sub-Series I-1, 6.38%, 11/01/19 (c)

      1,280        1,459,674   
    

 

 

  
               38,578,659   

Colorado — 0.7%

     

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

      2,330        2,513,068   

Connecticut — 0.3%

     

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

      1,005        1,071,762   
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2016    1

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

 

Municipal Bonds   Par  
(000)		     Value  

Delaware — 2.0%

    

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

   $ 1,240      $ 1,335,369   

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

     1,260        1,343,513   

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

     4,275        4,403,207   
   

 

 

  
              7,082,089   

District of Columbia — 4.5%

    

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

     820        937,039   

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

     11,500        11,885,135   

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

    

5.00%, 10/01/39

     550        588,258   

5.25%, 10/01/44

     2,000        2,147,480   
   

 

 

  
              15,557,912   

Florida — 5.8%

    

City of Atlantic Beach Florida, RB, Health Care Facilities, Fleet Landing Project, Series B, 5.63%, 11/15/43

     1,445        1,561,771   

City of Jacksonville Florida Port Authority, Refunding RB, AMT, 5.00%, 11/01/38

     1,665        1,750,148   

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

     1,450        1,550,601   

County of Miami-Dade Florida Aviation, Refunding, AMT, Miami International Airport:

    

5.25%, 10/01/18 (c)

     1,230        1,318,658   

5.25%, 10/01/38

     1,625        1,709,451   

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

     1,255        1,376,873   

County of Miami-Dade Florida Water & Sewer System, RB (AGM), 5.00%, 10/01/39

     5,000        5,461,550   

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

     3,300        4,099,854   
Municipal Bonds   Par  
(000)		     Value  

Florida (continued)

    

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

   $ 1,795      $ 1,255,531   
   

 

 

  
              20,084,437   

Georgia — 1.4%

    

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

     2,870        3,152,953   

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

     555        630,563   

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

     915        988,484   
   

 

 

  
              4,772,000   

Hawaii — 0.5%

    

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

     1,480        1,616,352   

Illinois — 20.0%

    

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

     3,050        2,863,004   

City of Chicago Illinois, GO, Refunding, Project, Series A, 5.25%, 1/01/32

     4,940        4,834,037   

City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien:

    

Series A, 5.75%, 1/01/39

     5,000        5,586,100   

Series C, 6.50%, 1/01/21 (c)

     6,430        7,606,947   

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

     1,150        1,225,866   

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

     3,130        3,290,068   

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

     845        904,175   

Illinois Finance Authority, Refunding RB:

    

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

     1,060        1,155,962   

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

     1,750        1,930,163   

Presence Health Network, Series C, 4.00%, 2/15/41

     1,545        1,302,543   
 

 

                
2    BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2016   

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

 

Municipal Bonds    Par  
(000)		     Value  

Illinois (continued)

     

Illinois Sports Facilities Authority, RB, State Tax Supported (AMBAC), 5.50%, 6/15/30

    $ 7,445      $ 7,468,973   

Illinois State Toll Highway Authority, RB:

     

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

      2,815        3,033,951   

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

      3,005        3,234,432   

Series A, 5.00%, 1/01/38

      2,160        2,350,966   

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

     

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

      6,725        6,980,886   

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

      2,725        2,772,660   

Railsplitter Tobacco Settlement Authority, RB:

     

5.50%, 6/01/23

      520        583,695   

6.00%, 6/01/28

      1,255        1,427,249   

State of Illinois, GO:

     

5.00%, 2/01/39

      1,640        1,603,346   

Series A, 5.00%, 4/01/35

      2,500        2,470,275   

Series A, 5.00%, 4/01/38

      3,885        3,809,825   

State of Illinois, RB, Build Illinois, Series B,
5.25%, 6/15/19 (c)

      685        749,650   

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

     

5.00%, 4/01/39

      860        913,604   

5.00%, 4/01/44

      1,050        1,111,341   
    

 

 

  
               69,209,718   

Indiana — 4.8%

     

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

     

6.75%, 1/01/34

      845        997,970   

7.00%, 1/01/44

      3,535        4,217,290   

Indiana Finance Authority, RB, Series A:

     

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

      3,510        3,926,637   

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

      485        501,466   

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

      1,610        1,637,113   
Municipal Bonds    Par  
(000)		     Value  

Indiana (continued)

     

Indiana Finance Authority, RB, Series A (continued):

     

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

    $ 435      $ 448,424   

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

      915        986,205   

Indiana Finance Authority, Refunding RB, Marquette Project, 4.75%, 3/01/32

      1,180        1,145,013   

Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/19 (c)

      1,200        1,313,076   

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

      1,380        1,505,898   
    

 

 

  
               16,679,092   

Iowa — 2.3%

     

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

     

5.00%, 12/01/19

      520        518,638   

5.50%, 12/01/22

      2,550        2,512,438   

5.25%, 12/01/25

      500        483,845   

5.88%, 12/01/26 (a)

      445        441,849   

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

      1,215        1,284,219   

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

      3,095        2,852,600   
    

 

 

  
               8,093,589   

Kentucky — 0.6%

     

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

      1,060        1,130,320   
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2016    3

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

 

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 (g)

   $ 1,280      $ 999,680   
   

 

 

  
              2,130,000   

Louisiana — 2.8%

    

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

     3,650        4,118,952   

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

    

5.50%, 5/15/30

     1,100        1,175,306   

5.25%, 5/15/31

     935        998,599   

5.25%, 5/15/32

     1,195        1,286,692   

5.25%, 5/15/33

     1,300        1,393,106   

5.25%, 5/15/35

     545        585,739   
   

 

 

  
              9,558,394   

Maryland — 1.2%

    

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

     475        511,570   

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

     800        788,640   

Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project, 6.25%, 1/01/21 (c)

     2,400        2,816,808   
   

 

 

  
              4,117,018   

Massachusetts — 1.5%

    

Commonwealth of Massachusetts, GO, Series E, 3.00%, 4/01/44

     3,105        2,512,131   

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

     1,530        1,538,032   
Municipal Bonds  

Par  

(000)

     Value  

Massachusetts (continued)

    

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

   $ 955      $ 1,023,598   
   

 

 

  
              5,073,761   

Michigan — 2.7%

    

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

     4,825        5,189,046   

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

    

5.50%, 5/15/20 (c)

     830        936,398   

5.50%, 5/15/36

     670        724,170   

Michigan Finance Authority, Refunding RB:

    

Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 7/01/44

     940        994,811   

Henry Ford Health System, 4.00%, 11/15/46

     1,540        1,421,112   
   

 

 

  
              9,265,537   

Minnesota — 0.3%

    

Minnesota Higher Education Facilities Authority, RB, Augsburg College (b):

    

Series A, 5.00%, 5/01/46

     670        692,860   

Series B, 4.25%, 5/01/40

     410        396,224   
   

 

 

  
              1,089,084   

Missouri — 2.0%

    

370/Missouri Bottom Road/Taussig Road Transportation Development District, RB, 7.20%, 5/01/33

     6,000        5,078,040   

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

     275        300,385   

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

     1,135        1,189,968   
 

 

                
4    BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2016   

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

 

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

   $ 265      $ 281,899   
   

 

 

  
              6,850,292   

Multi-State — 2.0%

    

Centerline Equity Issuer Trust (a):

    

Series A-4-2, 6.00%, 5/15/19

     3,500        3,794,735   

Series B-3-2, 6.30%, 5/15/19

     3,000        3,273,690   
   

 

 

  
              7,068,425   

Nebraska — 1.7%

    

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

    

5.25%, 9/01/37

     895        972,525   

5.00%, 9/01/42

     1,570        1,674,797   

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

     1,245        1,348,260   

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

     1,635        1,733,787   
   

 

 

  
              5,729,369   

New Jersey — 8.4%

    

Casino Reinvestment Development Authority, Refunding RB:

    

5.25%, 11/01/39

     1,805        1,744,244   

5.25%, 11/01/44

     1,640        1,566,019   

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

     1,165        1,145,463   

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

    

4.88%, 9/15/19

     670        693,993   

5.13%, 9/15/23

     2,130        2,297,823   

5.25%, 9/15/29

     2,130        2,253,689   

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

     7,475        8,642,894   

New Jersey State Turnpike Authority, RB:

    

Series A, 5.00%, 1/01/43

     2,160        2,353,925   

Series E, 5.00%, 1/01/45

     2,810        3,028,562   
Municipal Bonds   Par  
(000)		     Value  

New Jersey (continued)

    

New Jersey Transportation Trust Fund Authority, RB:

    

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

   $ 2,085      $ 2,033,208   

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

     2,690        2,713,699   

Rutgers — The State University of New Jersey, Refunding RB, Series L, 5.00%, 5/01/43

     570        631,189   
   

 

 

  
              29,104,708   

New York — 8.6%

    

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

     2,680        2,964,536   

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

     2,000        2,065,680   

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

     819        866,382   

Metropolitan Transportation Authority, RB, Series B:

    

5.25%, 11/15/38

     2,555        2,864,053   

5.25%, 11/15/39

     910        1,018,800   

Metropolitan Transportation Authority Hudson Rail Yards Trust Obligations, Refunding RB, Series A, 5.00%, 11/15/56

     1,135        1,226,220   

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

     1,335        1,460,450   

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

     4,320        4,376,203   

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

     365        373,504   

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

     910        939,875   

New York State Dormitory Authority, Refunding RB, General Purpose, Series A, 5.00%, 6/15/31

     1,930        2,180,495   
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2016    5

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

 

Municipal Bonds   Par  
(000)		     Value  

New York (continued)

    

New York Transportation Development Corp., Refunding RB, American Airlines, Inc., AMT:

    

5.00%, 8/01/26

   $ 1,080      $ 1,131,484   

5.00%, 8/01/31

     1,215        1,232,229   

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

     1,145        1,154,606   

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

    

6.00%, 12/01/42

     1,635        1,846,029   

Special Project, 6.00%, 12/01/36

     1,410        1,596,176   

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

     2,500        2,351,825   
   

 

 

  
              29,648,547   

North Carolina — 1.5%

    

North Carolina Capital Facilities Finance Agency, Refunding RB, Solid Waste Disposal Facility, Duke Energy Carolinas Project, Series B, 4.63%, 11/01/40

     1,000        1,058,510   

North Carolina Medical Care Commission, RB, Health Care Facilities, Duke University Health System, Series A, 5.00%, 6/01/19 (c)

     1,525        1,656,867   

North Carolina Medical Care Commission, Refunding RB, 1st Mortgage:

    

Aldersgate, 6.25%, 7/01/35

     1,530        1,686,580   

Retirement Facilities Whitestone Project, Series A, 7.75%, 3/01/41

     625        692,187   
   

 

 

  
              5,094,144   

Ohio — 3.3%

    

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2, 5.88%, 6/01/47

     3,550        2,999,644   

County of Allen Ohio Hospital Facilities, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 6/01/38

     3,405        3,672,054   
Municipal Bonds   Par  
(000)		     Value  

Ohio (continued)

    

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

   $ 710      $ 775,178   

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

     3,025        3,142,854   

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

     870        903,834   
   

 

 

  
              11,493,564   

Pennsylvania — 2.9%

    

Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A, 5.00%, 5/01/42

     2,500        2,573,975   

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

     685        730,703   

Pennsylvania Economic Development Financing Authority, RB:

    

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

     2,065        2,215,125   

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

     3,030        3,099,357   

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

     1,190        1,291,162   
   

 

 

  
              9,910,322   

Rhode Island — 2.2%

    

Tobacco Settlement Financing Corp., Refunding RB:

    

Series A, 5.00%, 6/01/35

     890        912,303   

Series A, 5.00%, 6/01/40

     800        814,976   

Series B, 4.50%, 6/01/45

     2,850        2,726,481   

Series B, 5.00%, 6/01/50

     3,175        3,050,445   
   

 

 

  
              7,504,205   

South Carolina — 3.8%

    

State of South Carolina Ports Authority, RB:

    

5.25%, 7/01/40

     3,595        3,903,056   

AMT, 5.25%, 7/01/55

     1,390        1,472,552   

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

     3,575        3,975,900   
 

 

                
6    BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2016   

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

 

Municipal Bonds    Par  
(000)		     Value  

South Carolina (continued)

     

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

    $ 3,385      $ 3,694,220   
    

 

 

  
               13,045,728   

Tennessee — 0.7%

     

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

      1,470        1,567,520   

Metropolitan Government of Nashville & Davidson County Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 7/01/40

      740        792,325   
    

 

 

  
               2,359,845   

Texas — 12.0%

     

Central Texas Regional Mobility Authority, Refunding RB:

     

Senior Lien, 6.25%, 1/01/21 (c)

      2,350        2,750,017   

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

      390        414,769   

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

      630        678,327   

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

      665        705,745   

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

     

5.00%, 10/01/20 (c)

      765        859,103   

5.00%, 10/01/35

      885        977,624   

City of Houston Texas Airport System, Refunding ARB:

     

Senior Lien, Series A, 5.50%, 7/01/39

      1,675        1,770,927   

United Airlines, Inc. Terminal E Project, AMT, 5.00%, 7/01/29

      460        485,608   

City of Houston Texas Combined Utility System Revenue, Refunding RB, Combined 1st Lien, Series A (AGC):

     

6.00%, 5/15/19 (c)

      8,665        9,624,389   

6.00%, 11/15/35

      480        530,381   
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%, 1/01/23 (c)

    $ 485      $ 612,249   

County of Harris Texas-Houston Sports Authority, Refunding RB, 3rd Lien, Series A-3 (NPFGC), 0.00%, 11/15/36 (d)

      25,375        8,766,809   

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Projects, Series A, 0.00%, 9/15/37 (d)

      6,055        2,453,728   

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/20 (c)

      4,085        4,715,561   

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

     

LBJ Infrastructure Group LLC, 7.00%, 6/30/40

      3,000        3,425,340   

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

      2,250        2,558,250   
    

 

 

  
               41,328,827   

Utah — 0.1%

     

Utah State Charter School Finance Authority, RB, Ogden Preparatory Academy, Series A, 3.25%, 10/15/42

      435        363,999   

Virginia — 1.5%

     

Chesapeake Bay Bridge & Tunnel District, RB, 1st Tier General Resolution Revenue, 5.00%, 7/01/46

      770        825,078   

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

     

5.25%, 1/01/32

      1,755        1,880,114   

6.00%, 1/01/37

      2,120        2,378,725   
    

 

 

  
               5,083,917   

Washington — 4.0%

     

City of Bellingham Washington Water & Sewer, RB, 5.00%, 8/01/36

      5,050        5,550,758   

County of Grant Washington Public Utility District No. 2, Refunding RB, Series A, 5.00%, 1/01/41

      2,035        2,234,206   
 

 

                
  

BLACKROCK MUNICIPAL INCOME TRUST II

   NOVEMBER 30, 2016    7

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

 

Municipal Bonds    Par  
(000)		     Value  

Washington (continued)

     

Grant County Public Utility District No. 2, Refunding RB, Series A, 5.00%, 1/01/43

    $ 2,335      $ 2,559,791   

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

      815        872,718   

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

      2,445        2,741,285   
    

 

 

  
               13,958,758   

Wisconsin — 0.8%

     

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

      910        984,793   

Wisconsin Health & Educational Facilities Authority, Refunding RB, Medical College of Wisconsin, Inc., 4.00%, 12/01/46

      1,955        1,888,647   
    

 

 

  
               2,873,440   

Wyoming — 1.5%

     

County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project, Remarketing, 5.25%, 7/15/26

      3,355        3,660,506   

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

     

5.50%, 1/01/33

      800        830,184   

5.50%, 1/01/38

      750        778,298   
    

 

 

  
               5,268,988   

Total Municipal Bonds — 125.8%

              434,591,020   
    
                  

Municipal Bonds Transferred to

Tender Option Bond Trusts (h)

             

Alabama — 0.5%

                 

Auburn University, Refunding RB, Series A,
4.00%, 6/01/41

      1,820        1,817,179   

California — 6.6%

     

California Educational Facilities Authority, RB, University of Southern California, Series B,
5.25%, 10/01/18 (c)(i)

      2,850        3,061,385   

Municipal Bonds Transferred to

Tender Option Bond Trusts (h)

    Par  
(000)		     Value  

California (continued)

     

City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B,
5.00%, 11/01/19 (c)

    $ 10,335      $ 11,387,103   

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

      2,530        2,600,106   

Sacramento Area Flood Control Agency, Refunding RB, Consolidated Capital Assessment District No.2, Series A, 5.00%, 10/01/47

      3,345        3,656,414   

San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/19 (c)

      1,840        2,023,161   
    

 

 

  
               22,728,169   

Colorado — 2.1%

     

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

     

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

      4,230        4,465,738   

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

      2,710        2,857,776   
    

 

 

  
               7,323,514   

Connecticut — 3.1%

     

Connecticut State Health & Educational Facility Authority, RB, Yale University, Series X-3:

     

4.70%, 7/01/29

      5,179        5,281,958   

4.85%, 7/01/37

      5,143        5,243,156   
    

 

 

  
               10,525,114   

Georgia — 1.4%

     

Private Colleges & Universities Authority, Refunding RB, Emory University, Series C, 5.00%, 9/01/18 (c)

      4,638        4,946,010   

Massachusetts — 0.8%

     

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

      2,461        2,736,524   

New Hampshire — 0.7%

     

New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/19 (c)(i)

      2,219        2,426,663   
 

 

                
8   

BLACKROCK MUNICIPAL INCOME TRUST II

  

NOVEMBER 30, 2016

  

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

 

Municipal Bonds Transferred to

Tender Option Bond Trusts (h)

   Par  
(000)		     Value  

New York — 12.7%

    

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

   $ 1,710      $ 1,855,572   

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

     9,150        10,210,302   

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

     1,750        1,972,245   

Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.25%, 11/15/56

     5,120        5,666,984   

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

     11,670        13,104,305   

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

     7,040        7,967,657   

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

     2,790        3,132,194   
   

 

 

  
              43,909,259   

North Carolina — 0.9%

    

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

     2,740        3,004,081   

Texas — 3.1%

    

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

     2,660        2,915,094   

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

     3,720        4,105,578   

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

     3,347        3,730,476   
   

 

 

  
              10,751,148   

Utah — 1.2%

    

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

     3,959        4,191,841   

Municipal Bonds Transferred to

Tender Option Bond Trusts (h)

   Par   
(000)		     Value  

Virginia — 1.8%

    

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

   $ 5,909      $ 6,203,026   

Washington — 3.4%

    

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

     3,029        3,143,682   

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

     8,113        8,738,421   
   

 

 

  
              11,882,103   
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 38.3%             132,444,631   
Total Long-Term Investments
(Cost — $539,497,608) — 164.1%		             567,035,651   
Short-Term Securities   Shares         

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.43% (j)(k)

     5,481,763        5,481,763   

Total Short-Term Securities

(Cost — $5,481,763) — 1.6%

             5,481,763   
Total Investments
(Cost — $544,979,371*) — 165.7%		       572,517,414   

Other Assets Less Liabilities — 0.7%

       2,565,266   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (22.6)%

   

     (78,240,396 ) 

VMTP Shares, at Liquidation Value — (43.8)%

       (151,300,000 ) 
   

 

 

  

Net Assets Applicable to Common Shares — 100.0%

  

   $ 345,542,284   
   

 

 

  

 

*   As of November 30, 2016, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

   $ 467,697,646   
 

 

 

  

Gross unrealized appreciation

   $ 34,638,518   

Gross unrealized depreciation

     (7,919,936 ) 
 

 

 

  

Net unrealized appreciation

   $ 26,718,582   
 

 

 

  
 

 

                
  

BLACKROCK MUNICIPAL INCOME TRUST II

  

NOVEMBER 30, 2016

   9

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

 

 

Notes to Schedule of Investments
(a)   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.

 

(b)   When-issued security.

 

(c)   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.

 

(d)   Zero-coupon bond.

 

(e)   Issuer filed for bankruptcy and/or is in default.

 

(f)   Non-income producing security.

 

(g)   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.

 

(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 June 01, 2017 to November 15, 2019, is $14,496,613.

 

(j)   During the period ended November 30, 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 August 31,
2016		        Net
Activity		        Shares Held
at November 30,
2016		        Value at
November 30,
2016		        Income        Realized
Gain		  

BlackRock Liquidity Funds, MuniCash, Institutional Class

        3,509,584           1,972,179           5,481,763         $ 5,481,763         $ 2,800         $ 273   

 

(k)   Current yield as of period end.

 

Derivative Financial Instruments Outstanding as of Period End

 

Futures Contracts  
Contracts
Short		     Issue   Expiration   Notional
Value		     Unrealized
Appreciation		  
  (31)      10-Year U.S. Treasury Note   March 2017   $ 3,859,984      $ 15,127   
  (13)      5-Year U.S. Treasury Note   March 2017   $ 1,531,969        1,707   
  (28)      Long U.S. Treasury Bond   March 2017   $ 4,235,875        27,506   
  (6)      Ultra U.S. Treasury Bond   March 2017   $ 968,438        5,014   

 

Total

  

   $ 49,354   
       

 

 

  

 

Portfolio Abbreviations

 

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

 

                
10   

BLACKROCK MUNICIPAL INCOME TRUST II

  

NOVEMBER 30, 2016

  

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

 

IDA    Industrial Development Authority
LRB    Lease Revenue Bonds
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 methodologies 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. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 Investments include equity or debt issued by privately-held companies. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation methodologies 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 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 Investments 1

     —      $ 567,035,651        —      $ 567,035,651   

Short-Term Securities

   $ 5,481,763        —        —        5,481,763   
 

 

 

  

Total

   $ 5,481,763      $ 567,035,651        —      $ 572,517,414   
 

 

 

  
Derivative Financial Instruments 2        

Assets:

        
Interest rate contracts   $ 49,354        —        —      $ 49,354   

 

  1   

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

  2   

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

 

                
   BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2016    11

Schedule of Investments (concluded)

   

BlackRock Municipal Income Trust II (BLE)

 

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 pledged for futures contracts

   $ 213,800        —        —      $ 213,800   

Liabilities:

        

Bank overdraft

     —      $ (215,090)        —        (215,090 ) 

TOB Trust Certificates

     —        (78,101,186)        —        (78,101,186 ) 

VMTP Shares at Liquidation Value

     —        (151,300,000)        —        (151,300,000 ) 
 

 

 

  

Total

   $ 213,800      $ (229,616,276 )      —      $ (229,402,476 ) 
 

 

 

  

During the period ended November 30, 2016, there were no transfers between levels.

 

                
12    BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 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 II
By:   /s/ John M. Perlowski            
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock Municipal Income Trust II
Date: January 23, 2017

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: January 23, 2017

 

By:   /s/ Neal J. Andrews            
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock Municipal Income Trust II
Date: January 23, 2017