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: 08/31/2011

 

Date of reporting period: 05/31/2011

 

Item 1 – Schedule of Investments

 


 

 

 

 

Schedule of Investments May 31, 2011 (Unaudited)

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Arizona — 3.4%

 

 

 

 

 

 

 

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

 

$

2,135

 

$

2,191,492

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

5,635

 

 

5,091,504

 

5.00%, 12/01/37

 

 

3,990

 

 

3,511,719

 

 

 

 

 

 

 

 

 

 

 

 

 

10,794,715

 

Arkansas — 0.5%

 

 

 

 

 

 

 

County of Little River Arkansas,
Refunding RB, Georgia-Pacific Corp.
Project, AMT, 5.60%, 10/01/26

 

 

1,825

 

 

1,717,471

 

California — 20.8%

 

 

 

 

 

 

 

Bay Area Toll Authority, Refunding RB,
San Francisco Bay Area, Series F-1,
5.63%, 4/01/44

 

 

2,480

 

 

2,600,553

 

California County Tobacco Securitization
Agency, RB, CAB, Stanislaus, Sub-
Series C, 6.30%, 6/01/55 (a)

 

 

9,710

 

 

73,602

 

California HFA, RB, AMT, Home
Mortgage:

 

 

 

 

 

 

 

Series G, 5.50%, 8/01/42

 

 

7,270

 

 

7,235,976

 

Series K, 5.50%, 2/01/42

 

 

2,535

 

 

2,576,447

 

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

 

 

3,500

 

 

3,658,165

 

California State Public Works Board, RB,
Various Capital Project, Sub-Series I-1,
6.38%, 11/01/34

 

 

1,280

 

 

1,352,371

 

California Statewide Communities
Development Authority, RB, Health
Facility, Memorial Health Services,
Series A, 5.50%, 10/01/33

 

 

5,000

 

 

5,022,900

 

Los Angeles Department of Airports, RB,
Series A, 5.25%, 5/15/39

 

 

860

 

 

872,823

 

Los Angeles Department of Airports,
Refunding RB, Senior, Los Angeles
International Airport, Series A, 5.00%,
5/15/40

 

 

6,500

 

 

6,440,915

 

Los Angeles Unified School District
California, GO:

 

 

 

 

 

 

 

Series D, 5.00%, 7/01/27

 

 

2,375

 

 

2,469,335

 

Series I, 5.00%, 7/01/26

 

 

1,250

 

 

1,308,300

 

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

 

 

10,340

 

 

10,481,348

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

San Francisco City & County
Redevelopment Agency, Special Tax
Bonds, District No. 6, Mission Bay
South Public Improvements, 6.63%,
8/01/27

 

$

3,120

 

$

3,128,455

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

6.00%, 3/01/33

 

 

1,760

 

 

1,914,546

 

6.50%, 4/01/33

 

 

10,670

 

 

11,908,253

 

University of California, RB, Limited
Project, Series B, 4.75%, 5/15/38

 

 

5,095

 

 

4,820,940

 

 

 

 

 

 

 

 

 

 

 

 

 

65,864,929

 

Colorado — 1.9%

 

 

 

 

 

 

 

Colorado Health Facilities Authority,
Refunding RB, Series A:

 

 

 

 

 

 

 

Catholic Healthcare, 5.50%,
7/01/34

 

 

2,330

 

 

2,392,560

 

Sisters of Leavenworth,
5.00%, 1/01/40

 

 

2,400

 

 

2,287,728

 

Park Creek Metropolitan District
Colorado, Refunding RB, Senior,
Limited Tax, Property Tax, 5.50%,
12/01/37

 

 

1,375

 

 

1,226,060

 

 

 

 

 

 

 

 

 

 

 

 

 

5,906,348

 

Connecticut — 0.5%

 

 

 

 

 

 

 

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

 

 

1,505

 

 

1,504,970

 

Delaware — 1.6%

 

 

 

 

 

 

 

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

 

 

1,240

 

 

1,239,876

 

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

 

 

4,430

 

 

3,912,000

 

 

 

 

 

 

 

 

 

 

 

 

 

5,151,876

 

District Of Columbia — 6.4%

 

 

 

 

 

 

 

District of Columbia, Refunding RB,
Friendship Public Charter School Inc.
(ACA), 5.25%, 6/01/33

 

 

1,265

 

 

986,561

 

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

 

 

 

 

 

 

 

6.50%, 5/15/33

 

 

7,500

 

 

7,370,700

 

6.75%, 5/15/40

 

 

11,500

 

 

10,587,015

 

 

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:


 

 

ACA

American Capital Access Corp.

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

CAB

Capital Appreciation Bonds

EDA

Economic Development Authority

EDC

Economic Development Corp.

ERB

Education Revenue Bonds

GO

General Obligation Bonds

HDA

Housing Development Authority

HFA

Housing Finance Agency

IDA

Industrial Development Authority

NPFGC

National Public Finance Guarantee Corp.

RB

Revenue Bonds

SAN

State Aid Notes

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2011

1


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

District Of Columbia (concluded)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.00%, 10/01/39

 

$

550

 

$

545,022

 

5.25%, 10/01/44

 

 

865

 

 

864,931

 

 

 

 

 

 

 

 

 

 

 

 

 

20,354,229

 

Florida — 5.4%

 

 

 

 

 

 

 

City of Leesburg Florida, RB, Leesburg
Regional Medical Center Project,
5.50%, 7/01/32

 

 

1,265

 

 

1,162,915

 

County of Miami-Dade Florida, RB,
Miami International Airport, Series A,
AMT (AGC), 5.25%, 10/01/38

 

 

2,855

 

 

2,626,143

 

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

 

 

1,255

 

 

1,226,449

 

County of Orange Florida, Refunding RB
(Syncora), 4.75%, 10/01/32

 

 

905

 

 

847,279

 

Live Oak Community Development
District No. 1, Special Assessment
Bonds, Series A, 6.30%, 5/01/34

 

 

3,115

 

 

3,153,065

 

Miami Beach Health Facilities Authority,
RB, Mount Sinai Medical Center of
Florida, 6.75%, 11/15/21

 

 

3,900

 

 

3,993,561

 

Mid-Bay Bridge Authority, RB, Series A,
7.25%, 10/01/40

 

 

2,500

 

 

2,524,225

 

Stevens Plantation Community
Development District, Special
Assessment Bonds, Series A, 7.10%,
5/01/35

 

 

1,930

 

 

1,510,032

 

 

 

 

 

 

 

 

 

 

 

 

 

17,043,669

 

Georgia — 1.0%

 

 

 

 

 

 

 

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

 

 

915

 

 

915,595

 

Private Colleges & Universities Authority,
Refunding RB, Emory University,
Series C, 5.00%, 9/01/38

 

 

2,150

 

 

2,205,018

 

 

 

 

 

 

 

 

 

 

 

 

 

3,120,613

 

Guam — 0.7%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

695

 

 

688,043

 

6.75%, 11/15/29

 

 

995

 

 

1,009,656

 

7.00%, 11/15/39

 

 

680

 

 

699,686

 

 

 

 

 

 

 

 

 

 

 

 

 

2,397,385

 

Hawaii — 0.5%

 

 

 

 

 

 

 

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

 

 

1,480

 

 

1,517,548

 

Illinois — 11.1%

 

 

 

 

 

 

 

City of Chicago Illinois, O’Hare
International Airport, Refunding RB,
General, Third Lien, Series C, 6.50%,
1/01/41

 

 

6,430

 

 

7,064,448

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

MJH Education Assistance IV
LLC, Sub-Series B, 5.38%,
6/01/35 (b)(c)

 

 

900

 

 

241,623

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

Illinois Finance Authority, RB (concluded):

 

 

 

 

 

 

 

Navistar International,
Recovery Zone, 6.50%,
10/15/40

 

$

1,675

 

$

1,716,138

 

Illinois Finance Authority, Refunding RB:

 

 

 

 

 

 

 

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

 

 

1,750

 

 

1,751,085

 

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

 

 

455

 

 

353,662

 

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

 

 

15,000

 

 

15,117,600

 

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

 

 

 

 

 

 

 

Series B, 5.00%, 6/15/50

 

 

3,430

 

 

3,109,981

 

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

 

 

2,725

 

 

2,435,332

 

Railsplitter Tobacco Settlement
Authority, RB:

 

 

 

 

 

 

 

5.50%, 6/01/23

 

 

1,470

 

 

1,457,285

 

6.00%, 6/01/28

 

 

1,255

 

 

1,258,740

 

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

 

 

685

 

 

689,446

 

 

 

 

 

 

 

 

 

 

 

 

 

35,195,340

 

Indiana — 2.9%

 

 

 

 

 

 

 

Indiana Finance Authority, RB, Sisters of
St. Francis Health, 5.25%, 11/01/39

 

 

915

 

 

905,621

 

Indiana Finance Authority, Refunding
RB, Ascension Health Senior Credit,
Series B-5, 5.00%, 11/15/36

 

 

1,500

 

 

1,462,020

 

Indiana Health Facility Financing
Authority, Refunding RB:

 

 

 

 

 

 

 

Ascension Health, Series F,
5.38%, 11/15/25

 

 

2,095

 

 

2,146,390

 

Methodist Hospital Inc.,
5.38%, 9/15/22

 

 

3,675

 

 

3,448,106

 

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

 

 

1,200

 

 

1,249,548

 

 

 

 

 

 

 

 

 

 

 

 

 

9,211,685

 

Kansas — 0.5%

 

 

 

 

 

 

 

Kansas Development Finance Authority,
Refunding RB, Sisters of Leavenworth,
Series A, 5.00%, 1/01/40

 

 

1,755

 

 

1,752,280

 

Kentucky — 0.3%

 

 

 

 

 

 

 

Kentucky Economic Development
Finance Authority, Refunding RB,
Owensboro Medical Health System,
Series A, 6.38%, 6/01/40

 

 

1,105

 

 

1,084,248

 

Louisiana — 1.2%

 

 

 

 

 

 

 

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

 

 

3,650

 

 

3,739,279

 

 

 

 

2

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2011


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Maryland — 1.5%

 

 

 

 

 

 

 

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

 

$

475

 

$

459,938

 

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

 

 

1,000

 

 

972,630

 

Maryland Health & Higher Educational
Facilities Authority, RB, Union Hospital
Of Cecil County Issue, 5.63%,
7/01/32

 

 

1,000

 

 

1,000,830

 

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

 

 

2,400

 

 

2,374,296

 

 

 

 

 

 

 

 

 

 

 

 

 

4,807,694

 

Massachusetts — 1.0%

 

 

 

 

 

 

 

Massachusetts Bay Transportation
Authority, Refunding RB, Senior Series
A, 5.25%, 7/01/29

 

 

2,000

 

 

2,302,740

 

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

 

 

955

 

 

932,424

 

 

 

 

 

 

 

 

 

 

 

 

 

3,235,164

 

Michigan — 1.1%

 

 

 

 

 

 

 

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

 

 

1,500

 

 

1,468,080

 

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

 

 

2,305

 

 

1,962,777

 

 

 

 

 

 

 

 

 

 

 

 

 

3,430,857

 

Missouri — 2.1%

 

 

 

 

 

 

 

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

 

 

6,000

 

 

5,546,400

 

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

 

 

1,135

 

 

1,001,149

 

 

 

 

 

 

 

 

 

 

 

 

 

6,547,549

 

Multi-State — 4.3%

 

 

 

 

 

 

 

Centerline Equity Issuer Trust(d)(e):

 

 

 

 

 

 

 

5.75%, 5/15/15

 

 

1,000

 

 

1,073,730

 

6.00%, 5/15/15

 

 

5,000

 

 

5,428,250

 

6.00%, 5/15/19

 

 

3,500

 

 

3,796,870

 

6.30%, 5/15/19

 

 

3,000

 

 

3,265,920

 

 

 

 

 

 

 

 

 

 

 

 

 

13,564,770

 

Nebraska — 0.9%

 

 

 

 

 

 

 

Lancaster County Hospital Authority
No. 1, RB, Immanuel Obligation
Group, 5.63%, 1/01/40

 

 

1,245

 

 

1,201,238

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Nebraska (concluded)

 

 

 

 

 

 

 

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

 

$

1,635

 

$

1,597,428

 

 

 

 

 

 

 

 

 

 

 

 

 

2,798,666

 

Nevada — 0.8%

 

 

 

 

 

 

 

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

 

 

2,465

 

 

2,453,390

 

New Jersey — 9.7%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.75%,
6/15/34

 

 

3,810

 

 

3,449,955

 

Continental Airlines Inc.
Project, AMT,7.20%,
11/15/30 (f)

 

 

10,100

 

 

10,105,656

 

Kapkowski Road Landfill
Project, AMT, Series 1998B,
AMT, 6.50%, 4/01/31

 

 

10,000

 

 

9,666,300

 

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

 

 

7,475

 

 

7,578,230

 

 

 

 

 

 

 

 

 

 

 

 

 

30,800,141

 

New Mexico — 1.8%

 

 

 

 

 

 

 

New Mexico Income Housing Authority,
RB, Villa Del Oso Apartments Project,
Series A, 6.00%, 1/01/38 (g)

 

 

5,200

 

 

5,758,064

 

New York — 4.0%

 

 

 

 

 

 

 

Albany Industrial Development Agency,
RB, New Covenant Charter School
Project, Series A, 7.00%,
5/01/35 (b)(c)

 

 

985

 

 

246,309

 

Metropolitan Transportation Authority,
Refunding RB, Transportation,
   Series D, 5.25%, 11/15/40

 

 

1,325

 

 

1,336,766

 

New York City Industrial Development
Agency, RB, American Airlines Inc.,
JFK International Airport, AMT, 7.75%,
8/01/31 (f)

 

 

6,700

 

 

6,822,007

 

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

 

 

1,376,625

 

Port Authority of New York & New
Jersey, RB, JFK International Air
Terminal:

 

 

 

 

 

 

 

6.00%, 12/01/36

 

 

1,410

 

 

1,414,244

 

6.00%, 12/01/42

 

 

1,375

 

 

1,364,605

 

 

 

 

 

 

 

 

 

 

 

 

 

12,560,556

 

North Carolina — 2.3%

 

 

 

 

 

 

 

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

 

 

7,500

 

 

5,775,675

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2011

3


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

North Carolina (concluded)

 

 

 

 

 

 

 

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

 

$

1,525

 

$

1,522,606

 

 

 

 

 

 

 

 

 

 

 

 

 

7,298,281

 

Ohio — 2.0%

 

 

 

 

 

 

 

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

 

 

3,405

 

 

3,328,115

 

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

 

 

3,025

 

 

2,927,625

 

 

 

 

 

 

 

 

 

 

 

 

 

6,255,740

 

Oklahoma — 1.3%

 

 

 

 

 

 

 

Tulsa Airports Improvement Trust, RB,
Series A, Mandatory Put Bonds, AMT,
7.75%, 6/01/35 (f)

 

 

3,925

 

 

4,027,207

 

Pennsylvania — 3.3%

 

 

 

 

 

 

 

Allegheny County Hospital Development
Authority, Refunding RB, Health
System, West Penn, Series A, 5.38%,
11/15/40

 

 

2,000

 

 

1,517,000

 

Pennsylvania Economic Development
Financing Authority, RB:

 

 

 

 

 

 

 

Amtrak Project, Series A, AMT,
6.38%, 11/01/41

 

 

5,175

 

 

5,189,904

 

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

 

 

2,065

 

 

2,086,228

 

Pennsylvania Turnpike Commission, RB,
Sub-Series D, 5.13%, 12/01/40

 

 

1,700

 

 

1,633,819

 

 

 

 

 

 

 

 

 

 

 

 

 

10,426,951

 

Puerto Rico — 5.7%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
RB:

 

 

 

 

 

 

 

CAB, Series A, 6.55%,
8/01/32 (a)

 

 

8,600

 

 

2,207,104

 

CAB, Series A, 6.58%,
8/01/33 (a)

 

 

13,600

 

 

3,217,352

 

CAB, Series A, 6.60%,
8/01/34 (a)

 

 

5,500

 

 

1,194,820

 

CAB, Series A, 6.61%,
8/01/35 (a)

 

 

14,055

 

 

2,799,053

 

CAB, Series A, 6.63%,
8/01/36 (a)

 

 

11,875

 

 

2,180,131

 

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

 

 

6,100

 

 

6,488,143

 

 

 

 

 

 

 

 

 

 

 

 

 

18,086,603

 

South Carolina — 3.7%

 

 

 

 

 

 

 

County of Greenwood South Carolina,
RB, Facilities, Self Memorial Hospital:

 

 

 

 

 

 

 

5.50%, 10/01/26

 

 

2,280

 

 

2,282,713

 

5.50%, 10/01/31

 

 

3,250

 

 

3,251,073

 

South Carolina Jobs-EDA, Refunding RB,
Palmetto Health Alliance, Series A,
6.25%, 8/01/31

 

 

2,640

 

 

2,647,128

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

South Carolina (concluded)

 

 

 

 

 

 

 

South Carolina State Ports Authority, RB,
5.25%, 7/01/40

 

$

3,595

 

$

3,638,859

 

 

 

 

 

 

 

 

 

 

 

 

 

11,819,773

 

Tennessee — 3.8%

 

 

 

 

 

 

 

Knox County Health Educational &
Housing Facilities Board Tennessee,
Refunding RB, CAB, Series A (AGM),
5.77%, 1/01/21 (a)

 

 

20,405

 

 

12,120,366

 

Texas — 17.2%

 

 

 

 

 

 

 

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

 

 

2,400

 

 

986,160

 

Brazos River Authority, Refunding RB,
TXU Electric Co. Project, Series C,
Mandatory Put Bonds, AMT, 5.75%,
5/01/36 (f)

 

 

1,350

 

 

1,326,929

 

City of Dallas Texas, Refunding RB,
5.00%, 10/01/35

 

 

1,650

 

 

1,741,822

 

City of Houston Texas, RB, Senior Lien,
Series A, 5.50%, 7/01/39

 

 

1,675

 

 

1,722,352

 

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

 

 

9,145

 

 

10,176,373

 

Gulf Coast Waste Disposal Authority,
Refunding RB, Series A, AMT, 6.10%,
8/01/24

 

 

10,000

 

 

10,055,500

 

Harris County-Houston Sports Authority,
Refunding RB, Third Lien, Series A-3
(NPFGC), 5.96%, 11/15/36 (a)

 

 

25,375

 

 

3,708,049

 

Lower Colorado River Authority,
Refunding RB (NPFGC) (g):

 

 

 

 

 

 

 

5.00%, 5/15/13

 

 

35

 

 

37,976

 

5.00%, 5/15/13

 

 

30

 

 

32,582

 

Series A, 5.00%, 5/15/13

 

 

5

 

 

5,430

 

North Texas Tollway Authority, RB, Toll
2nd Tier, Series F, 6.13%, 1/01/31

 

 

6,790

 

 

6,987,114

 

San Antonio Energy Acquisition Public
Facility Corp., RB, Gas Supply, 5.50%,
8/01/24

 

 

3,600

 

 

3,627,252

 

Tarrant County Cultural Education
Facilities Finance Corp., RB, Scott &
White Healthcare, 6.00%, 8/15/45

 

 

4,410

 

 

4,570,392

 

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

 

 

 

 

 

 

 

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

 

 

4,210

 

 

4,461,926

 

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

 

 

3,650

 

 

3,824,178

 

Texas State Turnpike Authority, RB, First
Tier, Series A (AMBAC), 5.00%,
8/15/42

 

 

1,390

 

 

1,234,000

 

 

 

 

 

 

 

 

 

 

 

 

 

54,498,035

 

Utah — 1.2%

 

 

 

 

 

 

 

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

 

 

3,960

 

 

3,851,456

 

 

 

 

4

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2011


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Virginia — 2.8%

 

 

 

 

 

 

 

City of Norfolk Virginia, Refunding RB,
Series B (AMBAC), 5.50%, 2/01/31

 

$

1,240

 

$

1,203,656

 

Halifax County IDA, Refunding RB, Old
Dominion Electric Co-op Project, AMT
(AMBAC), 5.63%, 6/01/28

 

 

5,000

 

 

5,066,650

 

Virginia HDA, RB, Sub-Series H-1
(NPFGC), 5.35%, 7/01/31

 

 

2,490

 

 

2,490,622

 

 

 

 

 

 

 

 

 

 

 

 

 

8,760,928

 

Washington — 0.7%

 

 

 

 

 

 

 

Washington Health Care Facilities
Authority, RB, Swedish Health
Services, Series A, 6.75%, 11/15/41

 

 

2,190

 

 

2,310,012

 

Wisconsin — 2.1%

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,790

 

 

1,807,166

 

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

 

 

910

 

 

907,543

 

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

 

 

3,930

 

 

3,984,824

 

 

 

 

 

 

 

 

 

 

 

 

 

6,699,533

 

Wyoming — 1.6%

 

 

 

 

 

 

 

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

 

 

3,355

 

 

3,530,802

 

Wyoming Municipal Power Agency, RB,
Series A:

 

 

 

 

 

 

 

5.50%, 1/01/33

 

 

800

 

 

828,976

 

5.50%, 1/01/38

 

 

750

 

 

767,828

 

 

 

 

 

 

 

 

 

 

 

 

 

5,127,606

 

Total Municipal Bonds – 133.6%

 

 

 

 

 

423,595,927

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (h)

 

 

 

 

 

 

 

Alabama — 0.8%

 

 

 

 

 

 

 

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

 

 

2,519

 

 

2,520,115

 

California — 2.4%

 

 

 

 

 

 

 

California Educational Facilities
Authority, RB, University of Southern
California, Series A, 5.25%, 10/01/39

 

 

2,850

 

 

2,982,069

 

Los Angeles Community College District
California, GO, Election of 2001,
Series A (AGM), 5.00%, 8/01/32

 

 

2,530

 

 

2,552,542

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (h)

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

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

 

$

1,840

 

$

1,901,127

 

 

 

 

 

 

 

 

 

 

 

 

 

7,435,738

 

Colorado — 2.1%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

 

4,230

 

 

4,127,676

 

Series C-7, 5.00%, 9/01/36

 

 

2,710

 

 

2,648,971

 

 

 

 

 

 

 

 

 

 

 

 

 

6,776,647

 

Connecticut — 3.3%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

 

5,170

 

 

5,361,858

 

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

 

 

5,130

 

 

5,220,083

 

 

 

 

 

 

 

 

 

 

 

 

 

10,581,941

 

Georgia — 1.5%

 

 

 

 

 

 

 

Private Colleges & Universities Authority,
Refunding RB, Emory University,
Series C, 5.00%, 9/01/38

 

 

4,638

 

 

4,757,186

 

Massachusetts — 1.0%

 

 

 

 

 

 

 

Massachusetts Water Resources
Authority, Refunding RB, General,
Series A, 5.00%, 8/01/41

 

 

3,150

 

 

3,214,417

 

New Hampshire — 0.7%

 

 

 

 

 

 

 

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

 

 

2,219

 

 

2,349,604

 

New York — 4.5%

 

 

 

 

 

 

 

New York City Municipal Water Finance
Authority, RB, Series FF-2, 5.50%,
6/15/40

 

 

1,710

 

 

1,822,591

 

New York State Dormitory Authority,
ERB, Series F, 5.00%, 3/15/35

 

 

9,284

 

 

9,417,828

 

New York State Environmental Facilities
Corp., RB, Revolving Funds, New York
City Municipal Water Project, Series B,
5.00%, 6/15/31

 

 

2,850

 

 

2,876,078

 

 

 

 

 

 

 

 

 

 

 

 

 

14,116,497

 

Virginia — 1.9%

 

 

 

 

 

 

 

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

 

 

5,910

 

 

6,150,537

 

Washington — 3.7%

 

 

 

 

 

 

 

Central Puget Sound Regional Transit
Authority, RB, Series A (AGM), 5.00%,
11/01/32

 

 

3,029

 

 

3,128,259

 

State of Washington, GO, Various
Purpose, Series E, 5.00%, 2/01/34

 

 

8,113

 

 

8,432,215

 

 

 

 

 

 

 

 

 

 

 

 

 

11,560,474

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts – 21.9%

 

 

 

 

 

69,463,156

 

Total Long-Term Investments
(Cost – $495,247,556) – 155.5%

 

 

 

 

 

493,059,083

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2011

5


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Short-Term Securities

 

Par
(000)

 

Value

 

Michigan — 1.1%

 

 

 

 

 

 

 

Michigan Finance Authority, RB, SAN
Detroit School, Series A-1, 6.45%,
2/02/12

 

$

3,580

 

$

3,630,621

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 

Money Market Fund — 2.0%

 

 

 

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.11% (i)(j)

 

 

6,169,488

 

 

6,169,488

 

Total Short-Term Securities
(Cost – $9,749,488) – 3.1%

 

 

 

 

 

9,800,109

 

Total Investments
(Cost – $504,997,044*) – 158.6%

 

 

 

 

 

502,859,192

 

Other Assets Less Liabilities – 1.5%

 

 

 

 

 

4,874,104

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable – (12.4)%

 

 

 

 

 

(39,283,618

)

Preferred Shares, at Redemption Value – (47.7)%

 

 

 

 

 

(151,306,114

)

 

 

 

 

 

 

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

317,143,564

 

 

 

 

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of May 31, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

465,198,447

 

 

 

 

Gross unrealized appreciation

 

$

13,760,482

 

Gross unrealized depreciation

 

 

(15,330,174

)

 

 

 

Net unrealized depreciation

 

$

(1,569,692

)

 

 

 

 

 

(a)

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

 

 

(b)

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

 

 

(c)

Non-income producing security.

 

 

(d)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

 

(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)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(h)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction.

 

 

(i)

Investments in companies considered to be an affiliate of the Trust during the period, 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,
2010

 

Net
Activity

 

Shares
Held at
May 31, 2011

 

Income

 

FFI Institutional
Tax-Exempt
Fund

 

 

9,440,330

 

 

(3,270,842

)

 

6,169,488

 

$

6,666

 

 

 

(j)

Represents the current yield as of report date.

 

 

•

Financial futures contracts sold as of May 31, 2011 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 

105

 

10-Year U.S. Treasury Note

 

Chicago Board of Trade

 

June 2011

 

$

12,443,941

 

$

(579,340

)

123

 

10-Year U.S. Treasury Note

 

Chicago Board of Trade

 

September 2011

 

$

15,051,891

 

 

(29,062

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

$

(608,402

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are summarized in three broad levels for financial reporting purposes as follows:

 

 

 

•

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

•

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

The following tables summarize the inputs used as of May 31, 2011 in determining the fair valuation of the Trust’s investments and derivative financial instruments:

 

 

 

6

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2011


 

 

 

 

Schedule of Investments (concluded)

BlackRock Municipal Income Trust II (BLE)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities1

 

 

—

 

$

493,059,083

 

 

—

 

$

493,059,083

 

Short-Term

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities

 

$

6,169,488

 

 

3,630,621

 

 

—

 

 

9,800,109

 

 

 

Total

 

$

6,169,488

 

$

496,689,704

 

 

—

 

$

502,859,192

 

 

 

1

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Derivative Financial Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

(608,402

)

 

—

 

 

—

 

$

(608,402

)

 

 

 

 

2

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

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2011

7

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 26, 2011
   
  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 26, 2011
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Municipal Income Trust II
     
  Date: July 26, 2011