UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-5769
Van Kampen High Income Trust II
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(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
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(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas, New York, New York 10020
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(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 12/31
Date of reporting period: 9/30/04
Item 1. Schedule of Investments.
The Trust's schedule of investments as of the close of the reporting period
prepared pursuant to Rule 12-12 of Regulation S-X is as follows:
VAN KAMPEN HIGH INCOME TRUST II
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 2004 (UNAUDITED)
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
CORPORATE BONDS 170.2%
BROADCASTING 3.1%
$ 125 Granite Broadcasting Corp. 9.750 % 12/01/10 $ 116,250
220 Salem Communications Corp. 7.750 12/15/10 233,200
795 TV Azteca SA (Mexico) 10.500 02/15/07 814,875
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1,164,325
-------------------
CABLE 7.7%
425 Cablevision Systems Corp., 144A - Private Placement (a) (b) 5.670 04/01/09 444,125
755 Charter Communications Holdings LLC 9.625 11/15/09 598,337
115 DirecTV Holdings LLC 8.375 03/15/13 131,387
635 Echostar DBS Corp. 6.375 10/01/11 646,112
395 Kabel Deutschland GmbH, 144A - Private Placement (Germany) (a) 10.625 07/01/14 432,525
635 PanAmSat Corp., 144A - Private Placement (a) 9.000 08/15/14 663,575
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2,916,061
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CHEMICALS 13.0%
460 Equistar Chemicals LP 10.125 09/01/08 520,950
250 Equistar Chemicals LP 10.625 05/01/11 286,250
180 FMC Corp. 10.250 11/01/09 211,050
145 Huntsman Advanced Materials LLC, 144A - Private Placement (a) 11.000 07/15/10 168,925
200 Innophos, Inc.,144A - Private Placement (a) 8.875 08/15/14 214,000
145 ISP Chemco, Inc. 10.250 07/01/11 162,400
675 ISP Holdings, Inc. 10.625 12/15/09 745,875
105 Koppers, Inc. 9.875 10/15/13 116,550
570 Lyondell Chemical Co. 10.500 06/01/13 661,200
40 Millennium America, Inc. 7.000 11/15/06 41,700
385 Millennium America, Inc. 9.250 06/15/08 426,387
395 Nalco Co. 7.750 11/15/11 420,675
365 Rhodia SA (France) 8.875 06/01/11 319,375
445 Rockwood Specialties Group, Inc. 10.625 05/15/11 491,725
101 Westlake Chemical Corp. 8.750 07/15/11 113,877
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4,900,939
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CONSUMER PRODUCTS 3.7%
200 Amscan Holdings, Inc., 144A - Private Placement (a) 8.750 05/01/14 205,000
155 Oxford Industrials, Inc., 144A - Private Placement (a) 8.875 06/01/11 168,950
620 Phillips Van-Heusen Corp. 7.250 02/15/11 647,900
235 Rayovac Corp. 8.500 10/01/13 256,150
116 Tempur Pedic, Inc. 10.250 08/15/10 132,530
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1,410,530
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DIVERSIFIED MEDIA 10.7%
604 Advanstar Communications, Inc. (b) 9.220 08/15/08 631,075
485 Alliance Atlantis Communications, Inc. (Canada) 13.000 12/15/09 526,831
550 CanWest Media, Inc. (Canada) 10.625 05/15/11 628,375
485 Houghton Mifflin Co. 9.875 02/01/13 511,675
465 Marquee, Inc., 144A - Private Placement (a) (b) 5.970 08/15/10 481,275
140 Marquee, Inc., 144A - Private Placement (a) 8.625 08/15/12 149,100
111 PEI Holdings, Inc. 11.000 03/15/10 129,454
640 Primedia, Inc. 8.875 05/15/11 643,200
295 Vertis, Inc. 9.750 04/01/09 318,600
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4,019,585
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ENERGY 16.5%
245 BRL Universal Equipment 8.875 02/15/08 262,150
340 CHC Helicopter Corp. (Canada) 7.375 05/01/14 356,150
160 Citgo Petroleum Corp. 11.375 02/01/11 189,200
670 El Paso Production Holding Co. 7.750 06/01/13 675,025
640 Frontier Oil Corp., 144A - Private Placement (a) (c) 6.625 10/01/11 651,200
285 Gulfterra Energy Partners LP 10.625 12/01/12 359,100
72 Gulfterra Energy Partners LP, Ser B 8.500 06/01/10 84,150
70 Hanover Compressor Co. 8.625 12/15/10 76,300
285 Hanover Compressor Co. 9.000 06/01/14 314,212
275 Hanover Equipment Trust 8.500 09/01/08 297,000
120 Hanover Equipment Trust 8.750 09/01/11 131,700
410 Hilcorp Energy Finance Corp., 144A - Private Placement (a) 10.500 09/01/10 456,125
140 Magnum Hunter Resources, Inc. 9.600 03/15/12 158,900
275 Pacific Energy Partners, 144A - Private Placement (a) 7.125 06/15/14 299,062
615 Plains Exploration & Production Co., 144A - Private Placement (a) 7.125 06/15/14 662,662
227 Port Arthur Finance Corp. 12.500 01/15/09 265,122
135 Tesoro Petroleum Corp. 9.625 04/01/12 156,937
760 Vintage Petroleum, Inc. 7.875 05/15/11 817,000
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6,211,995
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FINANCIAL 1.5%
510 Refco Finance Holdings LLC, 144A - Private Placement (a) 9.000 08/01/12 546,975
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FOOD & DRUG 4.0%
510 Delhaize America, Inc. 8.125 04/15/11 584,982
115 Jean Coutu Group (PJC), Inc., 144A - Private Placement (Canada) (a) 7.625 08/01/12 117,587
530 Jean Coutu Group (PJC), Inc., 144A - Private Placement (Canada) (a) 8.500 08/01/14 528,675
1,180 Jitney-Jungle Stores America, Inc. (d) (e) (f) 12.000 03/01/06 0
270 Rite Aid Corp. 8.125 05/01/10 284,850
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1,516,094
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FOOD & TOBACCO 8.1%
550 Constellation Brands, Inc. 8.000 02/15/08 608,437
255 Michael Foods, Inc. 8.000 11/15/13 268,387
155 Pilgrim's Pride Corp. 9.250 11/15/13 171,275
570 Pilgrim's Pride Corp. 9.625 09/15/11 641,250
465 Smithfield Foods, Inc. 7.625 02/15/08 498,712
760 Smithfield Foods, Inc. 8.000 10/15/09 841,700
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3,029,761
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FOREST PRODUCTS 13.3%
755 Abitibi-Consolidated, Inc. (Canada) 6.000 06/20/13 698,375
245 Abitibi-Consolidated, Inc. (Canada) 8.550 08/01/10 263,987
410 Georgia-Pacific Corp. 8.875 02/01/10 481,750
575 Graphic Packaging International, Inc. 9.500 08/15/13 659,812
415 MDP Acquisitions PLC (Ireland) 9.625 10/01/12 471,025
175 Norampac, Inc. (Canada) 6.750 06/01/13 183,312
1,020 Owens-Brockway Glass Containers, Inc. 8.875 02/15/09 1,114,350
365 Pliant Corp. 13.000 06/01/10 315,725
790 Tembec Industries, Inc. (Canada) 7.750 03/15/12 797,900
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4,986,236
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GAMING & LEISURE 17.1%
325 Caesars Entertainment 8.875 09/15/08 371,312
690 Harrahs Operating Co., Inc. 7.875 12/15/05 730,537
215 Hilton Hotels Corp. 7.625 12/01/12 251,012
129 HMH Properties, Inc. 7.875 08/01/08 133,354
200 Host Marriott LP 7.125 11/01/13 211,000
500 Intrawest Corp., 144A - Private Placement (Canada) (a) (c) 7.500 10/15/13 520,625
810 Isle of Capri Casinos, Inc. 7.000 03/01/14 818,100
115 MGM Mirage, Inc. 5.875 02/27/14 111,263
800 MGM Mirage, Inc. 6.000 10/01/09 815,000
30 MGM Mirage, Inc., 144A - Private Placement (a) 6.000 10/01/09 30,563
645 Mohegan Tribal Gaming Authority, 144A - Private Placement (a) 7.125 08/15/14 678,863
380 Park Place Entertainment Corp. 7.875 12/15/05 400,900
800 Starwood Hotels & Resorts Worldwide, Inc. 7.375 05/01/07 866,000
465 Station Casinos, Inc. 6.000 04/01/12 478,950
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6,417,479
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HEALTHCARE 10.4%
485 AmerisourceBergen Corp. 8.125 09/01/08 540,775
845 Extendicare Health Services, Inc. 6.875 05/01/14 866,125
295 Fisher Scientific International, Inc. 8.125 05/01/12 330,400
125 Fisher Scientific International, Inc., 144A - Private Placement (a) 6.750 08/15/14 131,875
410 Fresenius Medical Care Capital Trust II 7.875 02/01/08 448,950
180 Fresenius Medical Care Capital Trust IV 7.875 06/15/11 200,700
65 National Nephrology Associates, Inc., 144A - Private Placement (a) 9.000 11/01/11 75,481
305 Team Health, Inc., 144A - Private Placement (a) 9.000 04/01/12 305,000
325 Tenet Healthcare Corp., 144A - Private Placement (a) 9.875 07/01/14 341,250
140 VWR International, Inc., 144A - Private Placement (a) 6.875 04/15/12 147,000
485 VWR International, Inc., 144A - Private Placement (a) 8.000 04/15/14 515,313
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3,902,869
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HOUSING 8.8%
59 CB Richard Ellis Service, Inc. 9.750 05/15/10 67,113
405 CB Richard Ellis Service, Inc. 11.250 06/15/11 474,863
465 Interface, Inc. 9.500 02/01/14 483,600
455 Nortek Holdings, Inc., 144A - Private Placement (a) 8.500 09/01/14 478,888
650 Ply Gem Industries, Inc., 144A - Private Placement (a) 9.000 02/15/12 651,625
480 Technical Olympic USA, Inc. 9.000 07/01/10 528,000
215 Technical Olympic USA, Inc. 9.000 07/01/10 236,500
230 Technical Olympic USA, Inc. 10.375 07/01/12 258,750
140 WII Components, Inc. 10.000 02/15/12 136,500
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3,315,839
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INFORMATION TECHNOLOGY 4.3%
335 Iron Mountain, Inc. 7.750 01/15/15 356,775
570 Iron Mountain, Inc. 8.625 04/01/13 621,300
590 Xerox Corp. 7.125 06/15/10 632,775
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1,610,850
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MANUFACTURING 5.2%
115 Flowserve Corp. 12.250 08/15/10 130,525
395 Johnsondiversey, Inc. 9.625 05/15/12 444,375
500 Manitowoc, Inc. 10.500 08/01/12 578,750
755 Trimas Corp. 9.875 06/15/12 787,088
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1,940,738
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METALS 2.8%
150 Doe Run Resources Corp. (Acquired 02/15/01, Cost $131,859)(f)(g)(h) 11.750 11/01/08 128,475
105 Foundation PA Coal Co., 144A - Private Placement (a) 7.250 08/01/14 112,088
155 General Cable Corp. 9.500 11/15/10 172,825
325 UCAR Finance, Inc. 10.250 02/15/12 373,750
248 United States Steel Corp. 9.750 05/15/10 285,200
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1,072,338
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RETAIL 1.7%
66 Big 5 Corp. 10.875 11/15/07 68,063
215 General Nutrition Centers, Inc. 8.500 12/01/10 220,913
315 Petro Stopping Center Financial 9.000 02/15/12 335,475
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624,451
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SERVICES 7.4%
1,140 Allied Waste North America, Inc. 8.875 04/01/08 1,242,600
380 Buhrmann US, Inc., 144A - Private Placement (a) 8.250 07/01/14 381,900
295 MSW Energy Holdings II LLC 7.375 09/01/10 311,225
65 MSW Energy Holdings LLC 8.500 09/01/10 71,500
295 United Rentals North America, Inc. 6.500 02/15/12 285,413
540 United Rentals North America, Inc. 7.750 11/15/13 508,950
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2,801,588
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TELECOMMUNICATIONS 6.3%
450 Axtel SA (Mexico) 11.000 12/15/13 463,500
640 Cincinnati Bell, Inc. 7.250 07/15/13 619,200
220 Exodus Communications, Inc. (d) (e) (f) 11.250 07/01/08 0
320 Qwest Communications International, Inc., 144A - Private Placement (a)
(b) 5.211 02/15/09 306,400
525 Qwest Corp. 6.625 09/15/05 542,063
425 Qwest Corp., 144A - Private Placement (a) 7.875 09/01/11 443,063
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2,374,226
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TRANSPORTATION 7.1%
335 AutoNation, Inc. 9.000 08/01/08 386,925
435 Laidlaw International, Inc. 10.750 06/15/11 498,619
795 Sonic Automotive, Inc. 8.625 08/15/13 844,688
820 TRW Automotive, Inc. 9.375 02/15/13 940,950
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2,671,182
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UTILITY 12.1%
365 AES Corp. 7.750 03/01/14 378,688
18 AES Corp. 8.875 02/15/11 20,115
54 AES Corp. 9.375 09/15/10 61,088
530 Calpine Corp., 144A - Private Placement (a) 8.500 07/15/10 408,100
50 CMS Energy Corp. 7.500 01/15/09 52,625
295 CMS Energy Corp. 8.500 04/15/11 323,025
405 Dynegy Holdings, Inc. 6.875 04/01/11 387,788
295 Dynegy Holdings, Inc., 144A - Private Placement (a) 9.875 07/15/10 334,825
170 IPALCO Enterprises, Inc. 8.625 11/14/11 192,950
350 Monongahela Power Co. 5.000 10/01/06 363,891
360 Nevada Power Co. 9.000 08/15/13 415,800
220 Nevada Power Co. 8.250 06/01/11 247,500
300 PSEG Energy Holdings, Inc. 7.750 04/16/07 321,750
145 Southern Natural Gas Co. 8.875 03/15/10 163,850
580 TNP Enterprises, Inc. 10.250 04/01/10 626,400
200 Transcontinental Gas Pipe Line Corp. 8.875 07/15/12 244,250
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4,542,645
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WIRELESS COMMUNICATIONS 5.4%
435 Centennial Communications, 144A - Private Placement (a) 8.125 02/01/14 417,056
950 Nextel Communications, Inc. 6.875 10/31/13 992,750
185 Rural Cellular Corp., 144A - Private Placement (a) (b) 6.380 03/15/10 189,163
425 Rural Cellular Corp., 144A - Private Placement (a) 8.250 03/15/12 434,563
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2,033,532
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TOTAL CORPORATE BONDS 170.2% 64,010,238
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DESCRIPTION VALUE
EQUITIES 0.6%
DecisionOne Corp. (2,450 common shares) (f) (i) 0
DecisionOne Corp. (5,386 common stock warrants) (f) (i) 0
Doe Run Resources Corp. (1 common stock warrant) (f) (i) 0
HCI Direct, Inc. (30,357 common shares) (f) (i) 236,784
Hosiery Corp. of America, Inc. (500 common shares) (f)(i) 0
VS Holdings, Inc. (8,891 common shares) (f) (i) 1,660
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TOTAL EQUITIES 0.6% 238,444
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TOTAL LONG-TERM INVESTMENTS 170.8%
(Cost $63,662,255) 64,248,682
REPURCHASE AGREEMENT 3.6%
State Street Bank & Trust Co. ($1,357,000 par
collateralized by U.S. Government obligations in a
pooled cash account, interest rate of 1.82%, dated
09/30/04, to be sold on 10/01/04 at $1,357,069) 1,357,000
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(Cost $1,357,000)
TOTAL INVESTMENTS 174.4%
(Cost $65,019,255) 65,605,682
LIABILITIES IN EXCESS OF OTHER ASSETS (0.5%) (162,583)
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (73.9%) (27,828,317)
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NET ASSETS APPLICABLE TO COMMON SHARES 100.0% $37,614,782
===================
Percentages are calculated as a percentage of net assets
applicable to common shares.
(a) 144A securities are those which are exempt from registration
under Rule 144A of the Securities Act of 1933, as amended.
These securities may only be resold in transactions exempt
from registration which are normally those transactions with
qualified institutional buyers.
(b) Variable rate security. Interest rate shown is that in
effect at September 30, 2004.
(c) Security purchased on a when-issued or delayed delivery basis.
(d) Non-income producing as security is in default.
(e) This borrower has filed for protection in federal bankruptcy
court.
Item 2. Controls and Procedures.
(a) The Trust's principal executive officer and principal financial officer have
concluded that the Trust's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Trust in this Form N-Q
was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
(b) There were no changes in the Trust's internal control over financial
reporting that occurred during the registrant's fiscal quarter that has
materially affected, or is reasonably likely to materially affect, the Trust's
internal control over financial reporting.
Item 3. Exhibits.
(a) A certification for the Principal Executive Officer of the registrant
is attached hereto as part of EX-99.cert.
(b) A certification for the Principal Financial Officer of the registrant
is attached hereto as part of EX-99.cert.
SIGNATURES
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.
(Registrant) Van Kampen High Income Trust II
By: /s/ Ronald E. Robison
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Name: Ronald E. Robison
Title: Principal Executive Officer
Date: November 19, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ Ronald E. Robison
---------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: November 19, 2004
By: /s/ James M. Dykas
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Name: James M. Dykas
Title: Principal Financial Officer
Date: November 19, 2004