UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-07083
Name of Fund: BlackRock MuniYield Arizona Fund, Inc. (MZA)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock
MuniYield Arizona Fund, Inc., 55 East 52nd Street, New York, NY 10055
Registrants telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 07/31/2011
Date of reporting period: 04/30/2011
Item 1 Schedule of Investments
BlackRock MuniYield Arizona Fund, Inc. (MZA)
Schedule of Investments April 30, 2011 (Unaudited)
(Percentages shown are based on Net Assets)
Par | |||
Municipal Bonds | (000) | Value | |
Arizona — 133.2% | |||
County/City/Special District/School District — 54.4% | |||
City of Glendale Arizona, RB (NPFGC), | |||
5.00%, 7/01/25 | $ 2,305 | $ 2,375,763 | |
City of Tucson Arizona, COP: | |||
(AGC), 5.00%, 7/01/29 | 1,000 | 1,008,610 | |
Series A (NPFGC), 5.00%, 7/01/20 | 1,500 | 1,569,735 | |
County of Pinal Arizona, COP: | |||
5.00%, 12/01/26 | 1,250 | 1,220,850 | |
5.00%, 12/01/29 | 1,250 | 1,166,713 | |
Gila County Unified School District | |||
No. 10-Payson Arizona, GO, School | |||
Improvement Project of 2006, | |||
Series A (AMBAC), 5.25%, 7/01/27 | 500 | 512,935 | |
Gilbert Public Facilities Municipal | |||
Property Corp. Arizona, RB, 5.50%, | |||
7/01/27 | 2,000 | 2,118,540 | |
Gladden Farms Community Facilities | |||
District, GO, 5.50%, 7/15/31 | 750 | 629,918 | |
Greater Arizona Development Authority, | |||
RB, Santa Cruz County Jail, Series 2, | |||
5.25%, 8/01/31 | 1,000 | 993,750 | |
Maricopa County Community College | |||
District Arizona, GO, Series C, 3.00%, | |||
7/01/22 | 1,000 | 950,940 | |
Maricopa County Pollution Control Corp., | |||
Refunding RB, Southern California | |||
Edison Co., Series A, 5.00%, 6/01/35 | 3,100 | 2,994,600 | |
Maricopa County Public Finance Corp., | |||
RB, Series A (AMBAC), 5.00%, | |||
7/01/24 | 2,500 | 2,587,850 | |
Maricopa County Unified School District | |||
No. 11-Peoria Arizona, GO, School | |||
Improvement, 2nd Series (NPFGC), | |||
5.00%, 7/01/25 | 430 | 441,524 | |
Maricopa County Unified School District | |||
No. 89-Dysart Arizona, GO, School | |||
Improvement Project of 2006, | |||
Series C, 6.00%, 7/01/28 | 1,000 | 1,084,630 | |
Mohave County Unified School District | |||
No. 20 Kingman, GO, School | |||
Improvement Project of 2006, | |||
Series C (AGC), 5.00%, 7/01/26 | 1,000 | 1,039,360 | |
Phoenix Civic Improvement Corp., RB, | |||
Subordinate, Civic Plaza Expansion | |||
Project, Series A (NPFGC), 5.00%, | |||
7/01/35 | 3,325 | 3,247,261 | |
Queen Creek Improvement District | |||
No. 1, Special Assessment Bonds, | |||
5.00%, 1/01/32 | 1,000 | 904,290 |
Par | |||
Municipal Bonds | (000) | Value | |
Arizona (continued) | |||
County/City/Special District/School | |||
District (concluded) | |||
Scottsdale Municipal Property Corp. | |||
Arizona, RB, Water & Sewer | |||
Development Project, Series A, 5.00%, | |||
7/01/24 | $ 1,500 | $ 1,612,485 | |
State of Arizona, RB, Series A (AGM), | |||
5.00%, 7/01/29 | 2,000 | 2,002,660 | |
Vistancia Community Facilities District | |||
Arizona, GO: | |||
6.75%, 7/15/22 | 1,275 | 1,308,877 | |
5.75%, 7/15/24 | 750 | 777,105 | |
Yuma County Library District, GO | |||
(Syncora), 5.00%, 7/01/26 | 1,465 | 1,500,043 | |
32,048,439 | |||
Education — 16.4% | |||
Arizona State University, RB, | |||
Series 2008-C: | |||
6.00%, 7/01/25 | 970 | 1,080,910 | |
6.00%, 7/01/26 | 745 | 826,279 | |
6.00%, 7/01/27 | 425 | 469,430 | |
6.00%, 7/01/28 | 400 | 439,488 | |
Glendale IDA, Refunding RB, | |||
Midwestern University, 5.00%, | |||
5/15/35 | 1,000 | 896,920 | |
Maricopa County IDA Arizona, RB, | |||
Arizona Charter Schools Project, | |||
Series A, 6.63%, 7/01/20 | 900 | 688,383 | |
Pima County IDA, RB, Arizona Charter | |||
Schools Project, Series C: | |||
6.70%, 7/01/21 | 715 | 699,177 | |
6.75%, 7/01/31 | 985 | 890,263 | |
Pima County IDA, Refunding RB: | |||
Arizona Charter Schools Project, | |||
Series O, 5.00%, 7/01/26 | 995 | 778,587 | |
Charter Schools II, Series A, 6.75%, | |||
7/01/21 | 565 | 554,570 | |
University of Arizona, COP, Refunding, | |||
University of Arizona Projects, Series A | |||
(AMBAC), 5.13%, 6/01/29 | 905 | 909,697 | |
University of Arizona, COP, University of | |||
Arizona Projects, Series B (AMBAC), | |||
5.00%, 6/01/28 | 1,400 | 1,404,060 | |
9,637,764 |
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 Guaranty Corp. | GO | General Obligation Bonds |
AGM | Assured Guaranty Municipal Corp. | IDA | Industrial Development Authority |
AMBAC | American Municipal Bond Assurance Corp. | NPFGC | National Public Finance Guarantee Corp. |
AMT | Alternative Minimum Tax (subject to) | RB | Revenue Bonds |
CAB | Capital Appreciation Bonds | S/F | Single-Family |
COP | Certificates of Participation |
BLACKROCK MUNIYIELD ARIZONA FUND, INC. | APRIL 30, 2011 | 1 |
BlackRock MuniYield Arizona Fund, Inc. (MZA)
Schedule of Investments (continued)
(Percentages shown are based on Net Assets)
Par | |||
Municipal Bonds | (000) | Value | |
Arizona (continued) | |||
Health — 16.9% | |||
Arizona Health Facilities Authority, | |||
Refunding RB, Banner Health, | |||
Series D: | |||
6.00%, 1/01/30 | $ 1,500 | $ 1,511,925 | |
5.50%, 1/01/38 | 1,300 | 1,242,189 | |
Maricopa County IDA Arizona, Refunding | |||
RB: | |||
Catholic Healthcare West, Series A, | |||
5.50%, 7/01/26 | 1,850 | 1,841,379 | |
Samaritan Health Services, Series A | |||
(NPFGC), 7.00%, 12/01/16 (a) | 1,000 | 1,194,120 | |
Scottsdale IDA, RB, Scottsdale | |||
Healthcare, Series C (AGC), 5.00%, | |||
9/01/35 | 2,000 | 1,902,600 | |
University Medical Center Corp. Arizona, | |||
RB, 6.50%, 7/01/39 | 500 | 511,055 | |
Yavapai County IDA Arizona, RB, Yavapai | |||
Regional Medical Center, Series A, | |||
6.00%, 8/01/33 | 1,800 | 1,737,720 | |
9,940,988 | |||
Housing — 5.0% | |||
Maricopa County & Phoenix Industrial | |||
Development Authorities, Refunding | |||
RB, AMT (Ginnie Mae), S/F: | |||
Series A-1, 5.75%, 5/01/40 | 460 | 464,467 | |
Series A-2, 5.80%, 7/01/40 | 345 | 351,417 | |
Maricopa County IDA Arizona, RB, | |||
Series 3-B, AMT (Ginnie Mae), 5.25%, | |||
8/01/38 | 650 | 677,181 | |
Phoenix & Pima County IDA, RB, | |||
Series 1A, AMT (Ginnie Mae), 5.65%, | |||
7/01/39 | 267 | 283,069 | |
Phoenix & Pima County IDA, Refunding | |||
RB, Series 2007-1, AMT (Ginnie Mae), | |||
5.25%, 8/01/38 | 569 | 572,477 | |
Phoenix IDA Arizona, Refunding RB, | |||
Series 2007-2, AMT (Ginnie Mae), | |||
5.50%, 8/01/38 | 597 | 597,700 | |
2,946,311 | |||
State — 15.8% | |||
Arizona School Facilities Board, COP: | |||
5.13%, 9/01/21 | 1,000 | 1,042,000 | |
5.75%, 9/01/22 | 2,000 | 2,144,320 | |
Arizona Sports & Tourism Authority, RB, | |||
Baseball Training Facilities Project, | |||
5.00%, 7/01/16 | 300 | 304,728 | |
Arizona State Transportation Board, RB, | |||
Series B, 5.00%, 7/01/30 | 4,000 | 4,158,480 | |
Greater Arizona Development Authority, | |||
RB, Series B (NPFGC), 5.00%, | |||
8/01/30 | 1,700 | 1,658,809 | |
9,308,337 | |||
Transportation — 6.0% | |||
Phoenix Civic Improvement Corp., RB: | |||
Junior Lien, Series A, 5.00%, | |||
7/01/40 | 1,000 | 912,830 | |
Senior Lien, Series A, 5.00%, | |||
7/01/33 | 1,000 | 989,360 |
Par | |||
Municipal Bonds | (000) | Value | |
Arizona (concluded) | |||
Transportation (concluded) | |||
Phoenix Civic Improvement Corp., RB | |||
(concluded): | |||
Senior Lien, Series B, AMT (NPFGC), | |||
5.75%, 7/01/17 | $ 1,000 | $ 1,031,340 | |
Senior Lien, Series B, AMT (NPFGC), | |||
5.25%, 7/01/32 | 600 | 576,252 | |
3,509,782 | |||
Utilities — 18.7% | |||
City of Mesa Arizona, RB (NPFGC), | |||
5.00%, 7/01/23 | 300 | 331,875 | |
County of Pima Arizona, RB, System | |||
(AGM), 5.00%, 7/01/25 | 1,000 | 1,042,900 | |
Gilbert Water Resource Municipal | |||
Property Corp., RB, Subordinate Lien | |||
(NPFGC), 5.00%, 10/01/29 | 900 | 913,293 | |
Phoenix Civic Improvement Corp., RB, | |||
Junior Lien (NPFGC), 5.50%, 7/01/20 | 2,500 | 2,618,250 | |
Phoenix Civic Improvement Corp., | |||
Refunding RB, Senior Lien, 5.50%, | |||
7/01/22 | 2,000 | 2,252,340 | |
Pima County IDA, RB, Tucson Electric | |||
Power Co., Series A, 5.25%, | |||
10/01/40 | 1,000 | 872,140 | |
Pinal County IDA Arizona, RB, San | |||
Manuel Facility Project, AMT, 6.25%, | |||
6/01/26 | 500 | 413,220 | |
Salt River Project Agricultural | |||
Improvement & Power District, RB, | |||
Series A, 5.00%, 1/01/24 | 1,000 | 1,076,800 | |
Salt River Project Agricultural | |||
Improvement & Power District, | |||
Refunding RB, Salt River Project, | |||
Series A, 5.00%, 1/01/35 | 1,500 | 1,507,335 | |
11,028,153 | |||
Total Municipal Bonds in Arizona | 78,419,774 | ||
Guam — 1.5% | |||
Utilities — 1.5% | |||
Guam Government Waterworks | |||
Authority, Refunding RB, Water, | |||
5.88%, 7/01/35 | 1,000 | 909,550 | |
Total Municipal Bonds in Guam | 909,550 | ||
Puerto Rico — 23.6% | |||
County/City/Special District/School District — 3.2% | |||
Puerto Rico Sales Tax Financing Corp., | |||
Refunding RB: | |||
CAB, Series A (NPFGC), 5.83%, | |||
8/01/41 (b) | 9,530 | 1,273,208 | |
First Sub-Series C, 6.00%, 8/01/39 | 600 | 601,620 | |
1,874,828 | |||
Housing — 2.4% | |||
Puerto Rico Housing Finance Authority, | |||
Refunding RB, Subordinate, Capital | |||
Fund Modernization, 5.50%, | |||
12/01/18 | 1,250 | 1,384,737 | |
State — 5.5% | |||
Commonwealth of Puerto Rico, GO, | |||
Series A, 6.00%, 7/01/38 | 800 | 783,136 |
2 BLACKROCK MUNIYIELD ARIZONA FUND, INC. | APRIL 30, 2011 |
BlackRock MuniYield Arizona Fund, Inc. (MZA)
Schedule of Investments (continued)
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Puerto Rico (concluded) | ||
State (concluded) | ||
Puerto Rico Public Buildings Authority, | ||
Refunding RB, Government Facilities, | ||
Series M-3 (NPFGC), 6.00%, 7/01/28 | $ 900 | $ 917,748 |
Puerto Rico Sales Tax Financing Corp., | ||
RB, First Sub-Series A, 6.38%, | ||
8/01/39 | 1,500 | 1,554,780 |
3,255,664 | ||
Transportation — 5.8% | ||
Puerto Rico Highway & Transportation | ||
Authority, Refunding RB: | ||
Series AA (NPFGC), 5.50%, | ||
7/01/18 | 1,000 | 1,059,080 |
Series AA (NPFGC), 5.50%, | ||
7/01/20 | 500 | 517,615 |
Series CC, 5.50%, 7/01/31 | 790 | 753,842 |
Series E (AGM), 5.50%, 7/01/22 | 1,000 | 1,067,500 |
3,398,037 | ||
Utilities — 6.7% | ||
Puerto Rico Aqueduct & Sewer Authority, | ||
RB, Senior Lien, Series A (Radian), | ||
6.00%, 7/01/44 | 2,180 | 2,046,191 |
Puerto Rico Electric Power Authority, RB, | ||
Series WW: | ||
5.38%, 7/01/24 | 1,000 | 1,011,180 |
5.50%, 7/01/38 | 1,000 | 917,060 |
3,974,431 | ||
Total Municipal Bonds in Puerto Rico | 13,887,697 | |
U.S. Virgin Islands — 0.8% | ||
Corporate — 0.8% | ||
Virgin Islands Public Finance Authority, | ||
Refunding RB, Senior Secured, | ||
Hovensa Coker Project, AMT, 6.50%, | ||
7/01/21 | 500 | 483,335 |
Total Municipal Bonds in the U.S. Virgin Islands | 483,335 | |
Total Municipal Bonds – 159.1% | 93,700,356 | |
Municipal Bonds Transferred to Tender | ||
Option Bond Trusts (c) | ||
Arizona — 5.2% | ||
Utilities — 5.2% | ||
Phoenix Civic Improvement Corp., RB, | ||
Junior Lien, Series A, 5.00%, 7/01/34 | 3,000 | 3,056,220 |
Total Municipal Bonds Transferred to | ||
Tender Option Bond Trusts – 5.2% | 3,056,220 | |
Total Long-Term Investments | ||
(Cost – $97,979,003) – 164.3% | 96,756,576 | |
Short-Term Securities | Shares | |
BIF Arizona Municipal Money | ||
Fund, 0.00% (d)(e) | 1,184,484 | 1,184,484 |
Total Short-Term Securities | ||
(Cost – $1,184,484) – 2.0% | 1,184,484 |
Value | |
Total Investments | |
(Cost – $99,163,487*) – 166.3% | $ 97,941,060 |
Other Assets Less Liabilities – 2.1% | 1,253,832 |
Liability for Trust Certificates, Including Interest | |
Expense and Fees Payable – (2.5)% | (1,501,342) |
Preferred Shares, at Redemption Value – (65.9)% | (38,804,344) |
Net Assets Applicable to Common Shares– 100.0% | $ 58,889,206 |
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2011, as computed for federal income tax purposes, were as
follows:
Aggregate cost | $ 97,694,584 |
Gross unrealized appreciation | $ 1,727,209 |
Gross unrealized depreciation | (2,980,733) |
Net unrealized depreciation | $ (1,253,524) |
(a) Security is collateralized by Municipal or US Treasury obligations.
(b) Represents a zero-coupon bond. Rate shown reflects the current yield as
of report date.
(c) Securities represent bonds transferred to a tender option bond trust in
exchange for which the Fund acquired residual interest certificates.
These securities serve as collateral in a financing transaction.
(d) Investments in companies considered to be an affiliate of the Fund
during the period, for purposes of Section 2(a)(3) of the Investment
Company Act of 1940, as amended, were as follows:
Shares | Shares | |||
Held at | Net | Held at | ||
Affiliate | July 31, 2010 | Activity | April 30, 2011 | Income |
BIF Arizona | ||||
Municipal | ||||
Money Fund | 3,274,527 | (2,090,043) | 1,184,484 | -- |
(e) Represents the current yield as of report date.
BLACKROCK MUNIYIELD ARIZONA FUND, INC. | APRIL 30, 2011 | 3 |
BlackRock MuniYield Arizona Fund, Inc. (MZA)
Schedule of Investments (concluded)
• | Financial futures contracts sold as of April 30, 2011 were as follows: | |||||
Notional | Unrealized | |||||
Contracts | Issue | Exchange | Expiration | Value | Depreciation | |
35 | 10-Year U.S. Treasury Bond | Chicago Board of Trade | June 2011 | $ 4,147,980 | $ (91,942) |
•For Fund compliance purposes, the Fund’s sector classifications refer to
any one or more of the sector sub-classifications used by one or more
widely recognized market indexes or rating group indexes, and/or as
defined by Fund management. This definition may not apply for purposes
of this report, which may combine such sector sub-classifications for
reporting ease.
•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 Fund'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 Fund's policy regarding valuation of investments and
derivative financial instruments and other significant accounting policies,
please refer to the Fund’s most recent financial statements as contained in
its semi-annual report.
The following tables summarize the inputs used as of April 30, 2011 in
determining the fair valuation of the Fund's investments and derivative
financial instruments:
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
Assets: | ||||
Investments: | ||||
Long-Term | ||||
Investments1 | — | $ 96,756,576 | — | $ 96,756,576 |
Short-Term | ||||
Securities | $ 1,184,484 | — | — | 1,184,484 |
Total | $ 1,184,484 | $96,756,576 | — | $ 97,941,060 |
1 See above Schedule of Investments for values in each sector. |
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
Derivative Financial Instruments2 | ||||
Liabilities: | ||||
Interest rate contracts | $ (91,942) | --- | --- | $ (91,942) |
2Derivative financial instruments are financial futures contracts, which are valued at the unrealized | ||||
appreciation/depreciation on the instrument. |
BLACKROCK MUNIYIELD ARIZONA FUND, INC. | APRIL 30, 2011 | 4 |
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
31940 Act3)) areeffective 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 MuniYield Arizona Fund, Inc.
By: /S/ John M. Perlowski
John M. Perlowski
Chief Executive Officer of
BlackRock MuniYield Arizona Fund, Inc.
Date: June 24, 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 MuniYield Arizona Fund, Inc.
Date: June 24, 2011
By: /S/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniYield Arizona Fund, Inc.
Date: June 24, 2011