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: 08/31/2014

Date of reporting period: 11/30/2013

Item 1 – Schedule of Investments

Schedule of Investments November 30, 2013 (Unaudited)

   

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

Alabama — 2.5%

     

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

    $ 1,620      $ 1,608,660   

County of Jefferson Alabama Sewer Revenue, Refunding RB, Senior Lien (a):

     

Convertible CAB, Series C, 0.00%, 10/01/38 (b)

      630        345,706   

Convertible CAB, Series C, 0.00%, 10/01/42 (b)

      545        294,033   

Series A, 5.00%, 10/01/44

      860        804,883   

Series A, 5.25%, 10/01/48

      1,635        1,576,680   

Series D, 6.00%, 10/01/42

      3,820        3,484,642   
    

 

 

  
        8,114,604   

Arizona — 2.0%

     

Salt Verde Financial Corp., RB, Senior:

     

5.00%, 12/01/32

      5,635        5,519,877   

5.00%, 12/01/37

      1,000        962,140   
    

 

 

  
        6,482,017   

California — 12.8%

     

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

      2,480        2,658,312   

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

      3,500        4,000,815   

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

      1,365        1,405,827   

California HFA, RB, S/F Housing, Home Mortgage, Series K, AMT, 5.50%, 2/01/42

      1,105        1,135,620   

California Pollution Control Financing Authority, RB:

     

County of San Diego California Water Authority Desalination Project Pipeline, 5.00%, 11/21/45

      1,340        1,186,610   

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

      1,120        960,680   

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

      2,795        2,265,096   
Municipal Bonds    Par  
(000)		     Value  

California (concluded)

     

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

     

Series I, 5.00%, 11/01/38

    $ 925      $ 923,649   

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

      1,280        1,467,750   

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

     

5.00%, 5/15/40

      6,500        6,651,060   

5.25%, 5/15/39

      860        911,273   

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

      380        405,867   

County of Stanislaus California Tobacco Securitization Agency, RB, CAB, Sub-Series C, 12.16%, 6/01/55 (d)

      9,710        72,340   

San Diego Community College District California, GO, Election of 2006, 5.00%, 8/01/43

      1,170        1,231,343   

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

     

5.41%, 8/01/33

      3,000        1,049,670   

5.68%, 8/01/43

      2,500        474,450   

State of California, GO, Various Purposes:

     

6.00%, 3/01/33

      1,760        2,043,765   

6.50%, 4/01/33

      10,670        12,666,997   
    

 

 

  
        41,511,124   

Colorado — 2.2%

     

Colorado Health Facilities Authority, Refunding RB:

     

Catholic Health Initiative, Series A, 5.50%, 7/01/34

      2,330        2,541,727   

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

      1,900        1,752,750   

Colorado State Board of Governors, Refunding RB, State University System Enterprise, Series A, 5.00%, 3/01/43

      1,280        1,334,362   

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

      1,375        1,403,572   
    

 

 

  
        7,032,411   

 

                
   BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2013    1

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

Connecticut — 0.5%

     

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

    $ 1,505      $ 1,544,732   

Delaware — 1.7%

     

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

      1,240        1,272,091   

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

      4,400        4,190,692   
    

 

 

  
        5,462,783   

District of Columbia — 5.6%

     

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

      820        830,676   

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

     

6.50%, 5/15/33

      3,250        3,381,723   

6.75%, 5/15/40

      11,500        11,442,385   

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

     

5.00%, 10/01/39

      550        547,591   

5.25%, 10/01/44

      2,000        2,018,860   
    

 

 

  
        18,221,235   

Florida — 8.2%

     

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

      1,445        1,397,272   

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

      1,665        1,639,276   

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

      1,000        995,340   

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

     

Series A, AMT (AGC), 5.25%, 10/01/38

      2,855        2,863,251   

Series A-1, 5.38%, 10/01/41

      1,255        1,289,939   

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

      5,000        5,083,650   
Municipal Bonds    Par  
(000)		     Value  

Florida (concluded)

     

County of Tampa-Hillsborough Florida Expressway Authority, Refunding RB:

     

Series A, 5.00%, 7/01/37

    $ 2,175      $ 2,199,121   

Series B, 5.00%, 7/01/42

      2,735        2,748,155   

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

      3,085        3,234,376   

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

      3,300        3,610,662   

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

      1,895        1,412,040   
    

 

 

  
        26,473,082   

Georgia — 0.3%

     

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

      915        930,894   

Hawaii — 0.5%

     

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

      1,480        1,583,526   

Illinois — 15.5%

     

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

     

Series A, 5.75%, 1/01/39

      5,000        5,191,050   

Series C, 6.50%, 1/01/41

      6,430        7,202,822   

City of Chicago Illinois, GO, Project, Series A, 5.00%, 1/01/33

      4,940        4,622,358   

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

      895        910,287   

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

      1,150        1,161,972   

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

      3,130        3,041,327   

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

      845        882,003   

Illinois Finance Authority, Refunding RB:

     

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

      1,060        1,058,505   

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

      1,925        1,895,990   

 

                
2    BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2013   

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

Illinois (concluded)

  

Illinois Finance Authority, Refunding RB (concluded):

     

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

    $ 1,750      $ 1,837,028   

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

      455        395,595   

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

      10,500        11,051,670   

Illinois State Toll Highway Authority, RB, Series A, 5.00%, 1/01/38

      2,520        2,498,958   

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

     

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

      3,330        3,171,625   

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

      2,725        2,593,491   

Railsplitter Tobacco Settlement Authority, RB:

     

5.50%, 6/01/23

      520        570,502   

6.00%, 6/01/28

      1,255        1,366,281   

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

      685        705,879   
               50,157,343   

Indiana — 6.5%

  

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

     

4.00%, 8/01/35

      1,230        1,132,547   

4.00%, 2/01/38

      1,975        1,776,433   

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

     

6.75%, 1/01/34

      845        849,470   

7.00%, 1/01/44

      2,035        2,045,277   

Indiana Finance Authority, RB, Series A:

     

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

      485        429,715   

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

      1,610        1,407,816   

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

      915        929,375   

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

      3,510        3,665,563   
Municipal Bonds   

Par  

(000)

     Value  

Indiana (concluded)

  

Indiana Finance Authority, Refunding RB, Community Health Network Project, Series A, 5.00%, 5/01/42

    $ 2,050      $ 1,980,546   

Indiana Health Facility Financing Authority, Refunding RB, Methodist Hospital, Inc., 5.38%, 9/15/22

      3,675        3,678,381   

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

      1,200        1,319,904   

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

     

5.00%, 1/15/36

      430        446,908   

5.00%, 1/15/40

      1,380        1,420,696   
               21,082,631   

Iowa — 2.1%

  

Iowa Finance Authority, RB, Midwestern Disaster Area, Alcoa, Inc. Project, 4.75%, 8/01/42

      1,255        1,056,459   

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

     

5.00%, 12/01/19

      1,040        1,003,922   

5.50%, 12/01/22

      2,550        2,399,729   

5.25%, 12/01/25

      500        448,455   

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

      1,765        1,827,004   
               6,735,569   

Kentucky — 0.5%

  

Kentucky Economic Development Finance Authority, RB, Series A:

     

Catholic Health Initiatives, 5.25%, 1/01/45

      1,060        1,045,552   

Owensboro Medical Health System, Inc., 6.38%, 6/01/40

      410        427,712   
               1,473,264   

Louisiana — 2.8%

  

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

      3,650        3,911,778   

 

                
   BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2013    3

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par   

(000)

     Value  

Louisiana (concluded)

  

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

     

5.50%, 5/15/30

    $ 1,100      $ 1,117,886   

5.25%, 5/15/31

      935        924,453   

5.25%, 5/15/32

      1,195        1,175,558   

5.25%, 5/15/33

      1,300        1,273,597   

5.25%, 5/15/35

      545        531,293   
    

 

 

  
               8,934,565   

Maryland — 1.9%

  

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

      475        479,171   

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

      1,240        1,289,054   

Maryland Health & Higher Educational Facilities Authority, RB, Ascension Health Alliance, Series B, 5.00%, 11/15/51

      1,850        1,825,154   

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

      2,400        2,505,768   
    

 

 

  
               6,099,147   

Massachusetts — 0.8%

  

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

      955        966,087   

Massachusetts School Building Authority, RB, Dedicated Sales Tax, Senior Series A, 5.00%, 5/15/43

      1,540        1,614,490   
    

 

 

  
               2,580,577   

Michigan — 3.0%

  

City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A:

     

5.00%, 7/01/32

      1,705        1,536,631   

5.25%, 7/01/39

      4,825        4,409,664   

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

      1,500        1,523,565   
Municipal Bonds   

Par   

(000)

     Value  

Michigan (concluded)

     

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

    $ 2,305      $ 2,193,438   
    

 

 

  
               9,663,298   

Missouri — 2.4%

     

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

      6,000        6,000,780   

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

      275        282,497   

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

      1,135        1,128,462   

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

      265        264,987   
    

 

 

  
               7,676,726   

Multi-State — 4.3%

     

Centerline Equity Issuer Trust (c)(g):

     

Series A-4-1, 5.75%, 5/15/15

      1,000        1,062,040   

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

      3,500        4,012,960   

Series B-3-1, 6.00%, 5/15/15

      5,000        5,311,350   

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

      3,000        3,479,610   
    

 

 

  
               13,865,960   

Nebraska — 1.6%

     

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

     

5.25%, 9/01/37

      895        898,043   

5.00%, 9/01/42

      1,570        1,502,977   

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

      1,245        1,282,723   

 

                
4    BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2013   

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

Nebraska (concluded)

  

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

    $ 1,635      $ 1,667,373   
    

 

 

  
               5,351,116   

Nevada — 0.8%

  

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

      2,465        2,534,636   

New Jersey — 6.8%

     

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

     

5.13%, 9/15/23

      2,130        2,041,946   

5.25%, 9/15/29

      2,130        1,972,316   

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

      7,475        8,209,120   

New Jersey State Turnpike Authority, RB, Series A:

     

5.00%, 1/01/38

      1,405        1,448,470   

5.00%, 1/01/43

      2,160        2,203,740   

New Jersey Transportation Trust Fund Authority, RB, Transportation System:

     

Series A, 5.00%, 6/15/42

      2,000        2,023,520   

Series B, 5.25%, 6/15/36

      2,690        2,800,344   

Rutgers — The State University of New Jersey, Refunding RB, Series L:

     

5.00%, 5/01/38

      545        572,986   

5.00%, 5/01/43

      570        593,894   
    

 

 

  
               21,866,336   

New York — 6.4%

  

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

      985        147,760   

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

      6,700        7,251,343   

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

      2,680        2,787,361   
Municipal Bonds   

Par  

(000)

     Value  

New York (concluded)

  

New York Liberty Development Corp., Refunding RB, Liberty, 2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49

    $ 1,335      $ 1,408,438   

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

      3,625        3,730,560   

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

      1,930        2,067,667   

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

     

6.00%, 12/01/36

      1,410        1,515,722   

6.00%, 12/01/42

      1,635        1,747,553   
    

 

 

  
               20,656,404   

North Carolina — 5.6%

  

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

      6,500        5,665,010   

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

      8,930        8,741,130   

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

      1,525        1,542,537   

North Carolina Medical Care Commission, Refunding RB:

     

1st Mortage, Aldersgate, 6.25%, 7/01/35

      1,530        1,479,816   

Retirement Facilities, 1st Mortgage, Whitestone Project, Series A, 7.75%, 3/01/41

      625        655,188   
    

 

 

  
               18,083,681   

Ohio — 2.5%

  

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

      3,405        3,457,437   

 

                
   BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2013    5

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

Ohio (concluded)

  

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

    $ 710      $ 695,587   

County of Hamilton Ohio, RB, Christ Hospital Project, 5.00%, 6/01/42

      1,140        1,078,794   

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

      3,025        2,923,511   
    

 

 

  
               8,155,329   

Pennsylvania — 1.3%

  

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

      2,500        2,226,125   

Pennsylvania Economic Development Financing Authority, RB, Aqua Pennsylvania, Inc. Project, 5.00%, 11/15/40

      2,065        2,092,547   
    

 

 

  
               4,318,672   

Puerto Rico — 0.6%

  

Puerto Rico Sales Tax Financing Corp., RB, CAB, Series A, 8.10%, 8/01/36 (d)

      11,875        1,962,463   

South Carolina — 1.1%

  

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

      3,595        3,713,995   

Tennessee — 1.1%

  

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

      1,470        1,456,579   

Metropolitan Government Nashville & Davidson County Health & Educational Facility Board, Refunding RB, Vanderbilt University, Series D, 3.25%, 10/01/37

      2,505        2,060,187   
    

 

 

  
               3,516,766   

Texas — 18.2%

  

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

      2,400        83,976   
Municipal Bonds   

Par  

(000)

     Value  

Texas (continued)

  

Central Texas Regional Mobility Authority, Refunding RB:

     

Senior Lien, 6.25%, 1/01/46

    $ 2,350      $ 2,403,768   

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

      390        350,509   

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

      345        292,643   

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

      1,650        1,747,284   

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

      1,675        1,832,550   

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

      9,145        10,355,706   

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

      2,660        2,758,872   

County of Fort Bend Texas Industrial Development Corp., RB, NRG Energy, Inc. Project, Series A, 4.75%, 5/01/38

      1,400        1,209,222   

County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Home Inc., Project, Series B, 7.00%, 1/01/48 (a)

      485        481,843   

County of Harris Texas-Houston Sports Authority, Refunding RB, 3rd Lien, Series A-3 (NPFGC), 7.01%, 11/15/36 (d)

      25,375        5,216,085   

County of Matagorda Texas Navigation District No. 1, Refunding RB, AEP Texas Central Co. Project, Series 1, 4.00%, 6/01/30

      1,170        1,039,557   

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Projects, Series A, 5.02%, 9/15/37 (d)

      7,605        2,337,473   

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

      4,410        4,977,258   

Dallas-Fort Worth International Airport, Refunding ARB, Joint Improvement, Series E, AMT, 5.00%, 11/01/35

      3,600        3,478,896   

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

      6,790        7,217,702   

 

                
6    BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2013   

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

 

Municipal Bonds   

Par  

(000)

     Value  

Texas (concluded)

  

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

    $ 3,600      $ 3,995,028   

Texas Municipal Gas Acquisition & Supply Corp. III, RB, 5.00%, 12/15/29

      1,500        1,458,000   

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        3,280,230   

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

      3,000        3,242,880   

Texas Transportation Commission, Refunding RB, Central Texas Turnpike System, 1st Tier, Series A, 5.00%, 8/15/41

      1,310        1,288,660   
    

 

 

  
               59,048,142   

Utah — 0.8%

  

University of Utah, RB, General, Series A, 5.00%, 8/01/43

      685        714,859   

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

     

3.25%, 10/15/36

      1,085        791,226   

3.25%, 10/15/42

      1,660        1,146,230   
    

 

 

  
               2,652,315   

Virginia — 1.5%

  

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

     

5.25%, 1/01/32

      1,755        1,728,728   

6.00%, 1/01/37

      3,180        3,274,350   
    

 

 

  
               5,003,078   

Washington — 2.4%

  

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

      5,050        5,302,197   

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

      2,445        2,534,120   
    

 

 

  
               7,836,317   
Municipal Bonds   

Par  

(000)

     Value  

Wisconsin — 1.0%

  

Wisconsin State Health & Educational Facilities Authority, RB, Ascension Health Senior Care Group, 5.00%, 11/15/33

    $ 910      $ 948,020   

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

     

5.00%, 7/01/29

      410        432,341   

5.00%, 7/01/30

      515        538,530   

5.00%, 7/01/31

      1,125        1,171,046   
    

 

 

  
               3,089,937   

Wyoming — 1.6%

  

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

      3,355        3,588,206   

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

     

5.50%, 1/01/33

      800        864,552   

5.50%, 1/01/38

      750        806,535   
    

 

 

  
               5,259,293   
Total Municipal Bonds — 129.4%              418,673,968   
    
                  
Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts (i)		  

Alabama — 0.8%

  

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

      2,519        2,529,917   

California — 5.7%

  

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

      2,850        3,038,556   

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

      10,335        10,748,917   

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

      2,530        2,655,741   

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

      1,840        2,043,911   
    

 

 

  
               18,487,125   

 

                
   BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 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 (i)		   

Par  

(000)

     Value  

Colorado — 2.2%

     

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

     

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

    $ 4,230      $ 4,243,071   

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

      2,710        2,721,626   
    

 

 

  
               6,964,697   

Connecticut — 3.3%

     

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

     

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

      5,179        5,414,320   

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

      5,143        5,369,471   
    

 

 

  
               10,783,791   

Georgia — 1.5%

     

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

      4,638        4,805,906   

Massachusetts — 1.8%

     

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

      2,461        2,564,767   

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

      3,150        3,275,307   
    

 

 

  
               5,840,074   

New Hampshire — 0.7%

     

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

      2,219        2,395,728   

New York — 10.2%

     

City of New York New York Municipal Water Finance Authority, RB, Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 6/15/40

      1,710        1,822,113   

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series HH, 5.00%, 6/15/31 (j)

      9,149        9,721,006   

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

      1,750        1,866,991   
Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts (i)		   

Par  

(000)

     Value  

New York (concluded)

     

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

    $ 11,670      $ 12,182,896   

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

      7,040        7,502,035   
    

 

 

  
               33,095,041   

Texas — 2.3%

     

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

      3,720        3,837,664   

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

      3,346        3,529,057   
    

 

 

  
               7,366,721   

Utah — 1.2%

     

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

      3,957        3,998,289   

Virginia — 2.0%

     

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

      5,909        6,296,719   

Washington — 3.7%

     

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

      3,029        3,173,497   

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

      8,113        8,816,460   
    

 

 

  
               11,989,957   
Total Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts — 35.4%		         114,553,965   
Total Long-Term Investments
(Cost — $534,481,506) — 164.8%		         533,227,933   
    
                  
Short-Term Securities    Shares         

FFI Institutional Tax-Exempt Fund, 0.03% (k)(l)

      11,625,195        11,625,195   
Total Short-Term Securities
(Cost — $11,625,195) — 3.6%		         11,625,195   

 

 

                
8    BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 2013   

Schedule of Investments (continued)

   

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

     Value  
Total Investments (Cost — $546,106,701*) — 168.4%   $ 544,853,128   
Liabilities in Excess of Other Assets — (0.5)%     (1,727,446 ) 
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (21.1%)     (68,289,647 ) 
VMTP Shares, at Liquidation Value — (46.8%)     (151,300,000 ) 
 

 

 

  
Net Assets Applicable to Common Shares — 100.0%   $ 323,536,035   
 

 

 

  

 

*   As of November 30, 2013, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

   $ 479,123,729   
 

 

 

  

Gross unrealized appreciation

   $ 18,007,811   

Gross unrealized depreciation

     (20,550,011 ) 
 

 

 

  

Net unrealized depreciation

   $ (2,542,200 ) 
 

 

 

  

 

Notes to Schedule of Investments

 

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

 

Counterparty   Value    

Unrealized

Appreciation/

(Depreciation)

  

Citigroup Global Markets, Inc.

   $ 6,505,944      $ (105,525 ) 

Scott & Stringfellow, LLC

   $ 481,843      $ 616   

 

(b)   Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.

 

(c)   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.

 

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

 

(e)   Non-income producing security.

 

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

 

(g)   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.

 

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

 

(i)   Represent bonds transferred to a TOB. In exchange the Trust acquired residual interest certificates. These bonds serve as collateral in a financing transaction.

 

(j)   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 November 15, 2019 is $14,504,167.

 

(k)   Investments in issuers considered to be an affiliate of the Trust during the period ended November 30, 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,
2013

       

Net

Activity

        Shares Held
at November 30,
2013		        Income  

FFI Institutional Tax-Exempt Fund

        3,183,216           8,441,979           11,625,195         $ 623   

 

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

 

                
   BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 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.
     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
     HFA    Housing Finance Agency
     LRB    Lease Revenue Bonds
     NPFGC    National Public Finance Guarantee Corp.
     RB    Revenue Bonds
     S/F    Single Family

 

Ÿ  

Financial futures contracts as of November 30, 2013 were as follows:

 

Contracts Sold     Issue   Exchange   Expiration   Notional Value    

Unrealized

  Appreciation  

  
  (100 )    10-Year US Treasury Note   Chicago Board of Trade   December 2013           $ 12,664,063              $ 63,954   

 

Ÿ  

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:

 

  Ÿ  

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

 

  Ÿ  

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)

 

  Ÿ  

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 annual report.

 

                
10    BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 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 November 30, 2013:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                 
Investments:                 

Long-Term Investments1

     —         $ 533,227,933         —      $ 533,227,933   

Short-Term Securities

   $ 11,625,195           —         —        11,625,195   
 

 

 

       

 

 

       

 

     

 

 

  

Total

   $ 11,625,195         $ 533,227,933         —      $ 544,853,128   
 

 

 

       

 

 

       

 

     

 

 

  

 

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

   $ 63,954           —         —      $ 63,954   

 

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/or liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of November 30, 2013, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

   

     Level 1        Level 2        Level 3      Total  

Assets:

                 

Cash pledged for financial futures contracts

   $ 177,000           —         —      $ 177,000   

Liabilities:

                 

Bank overdraft

     —         $ (6,766 )       —        (6,766 ) 

TOB trust certificates

     —           (68,271,599 )       —        (68,271,599 ) 

VMTP Shares

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

 

 

       

 

 

       

 

     

 

 

  

Total

   $ 177,000         $ (219,578,365 )       —      $ (219,401,365 ) 
 

 

 

       

 

 

       

 

     

 

 

  

There were no transfers between levels during the period ended November 30, 2013.

 

                
   BLACKROCK MUNICIPAL INCOME TRUST II    NOVEMBER 30, 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: January 24, 2014

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 24, 2014

 

By:   

/s/ Neal J. Andrews

 

Neal J. Andrews

 

Chief Financial Officer (principal financial officer) of

  BlackRock Municipal Income Trust II

Date: January 24, 2014