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: Anne F. Ackerley, 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: 08/31/2010

 

Date of reporting period: 05/31/2010

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments May 31, 2010 (Unaudited)

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Arizona — 3.9%

 

 

 

 

 

 

 

Maricopa County Pollution Control Corp.,
Refunding RB, Southern California
Edison Co., Series A, 5.00%, 6/01/35

 

$

1,870

 

$

1,878,770

 

Pima County IDA, RB, American Charter
Schools Foundation, Series A, 5.63%,
7/01/38

 

 

1,000

 

 

885,300

 

Pima County IDA, Refunding IDRB,
Tucson Electric Power, 5.75%,
9/01/29

 

 

1,210

 

 

1,236,947

 

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

 

 

2,135

 

 

2,225,225

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

5,635

 

 

5,178,396

 

5.00%, 12/01/37

 

 

1,705

 

 

1,531,516

 

 

 

 

 

 

 

 

 

 

 

 

12,936,154

 

California — 22.2%

 

 

 

 

 

 

 

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

 

 

2,480

 

 

2,711,781

 

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

 

 

9,710

 

 

111,277

 

California HFA, RB, AMT, Home
Mortgage:

 

 

 

 

 

 

 

Series G, 5.50%, 8/01/42

 

 

8,930

 

 

9,064,843

 

Series K, 5.50%, 2/01/42

 

 

3,195

 

 

3,255,226

 

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

 

 

1,280

 

 

1,362,906

 

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

 

 

5,000

 

 

5,079,650

 

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

 

 

860

 

 

897,462

 

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

 

 

6,500

 

 

6,638,060

 

Los Angeles Unified School District
California, GO:

 

 

 

 

 

 

 

Series D, 5.00%, 7/01/27

 

 

2,375

 

 

2,502,585

 

Series I, 5.00%, 7/01/26

 

 

1,250

 

 

1,325,850

 

Series I, 5.00%, 7/01/27

 

 

1,750

 

 

1,844,010

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

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

 

$

10,340

 

$

10,765,491

 

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

 

 

3,120

 

 

3,144,991

 

State of California, GO, Refunding,
Various Purpose, 5.00%, 6/01/34

 

 

2,700

 

 

2,626,425

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

5.00%, 6/01/32

 

 

1,300

 

 

1,272,817

 

6.00%, 3/01/33

 

 

2,760

 

 

3,022,862

 

6.50%, 4/01/33

 

 

10,670

 

 

12,055,499

 

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

 

 

5,255

 

 

5,167,031

 

 

 

 

 

 

 

 

 

 

 

 

72,848,766

 

Colorado — 2.3%

 

 

 

 

 

 

 

City of Colorado Springs Colorado, RB,
Subordinate Lien, Improvement,
Series C (AGM), 5.00%, 11/15/45

 

 

1,375

 

 

1,409,292

 

Colorado Health Facilities Authority,
Refunding RB, Series A:

 

 

 

 

 

 

 

Catholic Healthcare, 5.50%,
7/01/34

 

 

2,330

 

 

2,473,598

 

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

 

 

2,400

 

 

2,401,704

 

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

 

 

1,375

 

 

1,327,783

 

 

 

 

 

 

 

 

 

 

 

 

7,612,377

 

Connecticut — 0.5%

 

 

 

 

 

 

 

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

 

 

1,505

 

 

1,548,419

 

District of Columbia — 6.5%

 

 

 

 

 

 

 

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

 

 

1,265

 

 

1,100,613

 

 

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

FSA

 

Financial Security Assurance Inc.

GO

 

General Obligation Bonds

HDA

 

Housing Development Authority

HFA

 

Housing Finance Agency

IDA

 

Industrial Development Authority

IDRB

 

Industrial Development Revenue Bonds

NPFGC

 

National Public Finance Guarantee Corp.

RB

 

Revenue Bonds

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2010

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)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

6.50%, 5/15/33

 

$

7,500

 

$

7,325,175

 

6.75%, 5/15/40

 

 

11,500

 

 

11,499,540

 

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

 

 

 

 

 

 

 

5.00%, 10/01/39

 

 

550

 

 

570,752

 

5.25%, 10/01/44

 

 

865

 

 

910,741

 

 

 

 

 

 

 

 

 

 

 

 

21,406,821

 

Florida — 6.2%

 

 

 

 

 

 

 

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

 

 

1,925

 

 

1,848,847

 

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

 

 

2,855

 

 

2,850,603

 

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

 

 

1,255

 

 

1,278,343

 

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

 

 

905

 

 

897,561

 

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

 

 

3,115

 

 

3,173,157

 

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

 

 

4,145

 

 

4,276,480

 

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

 

 

1,960

 

 

1,550,497

 

Sumter County IDA Florida, RB, North
Sumter Utility Co., LLC Project, AMT,
6.90%, 10/01/34

 

 

4,340

 

 

4,339,783

 

 

 

 

 

 

 

 

 

 

 

 

20,215,271

 

Georgia — 1.5%

 

 

 

 

 

 

 

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

 

 

915

 

 

947,409

 

Metropolitan Atlanta Rapid Transit
Authority, RB, Third Series, 5.00%,
7/01/39

 

 

3,770

 

 

3,981,233

 

 

 

 

 

 

 

 

 

 

 

 

4,928,642

 

Guam — 0.8%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

695

 

 

721,396

 

6.75%, 11/15/29

 

 

995

 

 

1,060,839

 

7.00%, 11/15/39

 

 

680

 

 

727,879

 

 

 

 

 

 

 

 

 

 

 

 

2,510,114

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois — 5.6%

 

 

 

 

 

 

 

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

 

$

900

 

$

243,018

 

Illinois Finance Authority, Refunding RB:

 

 

 

 

 

 

 

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

 

 

1,750

 

 

1,820,385

 

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

 

 

455

 

 

365,783

 

Illinois Sports Facilities Authority, RB,
State Tax Supported (AMBAC), 5.58%,
6/15/30 (d)

 

 

15,000

 

 

15,277,800

 

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

 

 

685

 

 

717,113

 

 

 

 

 

 

 

 

 

 

 

 

18,424,099

 

Indiana — 3.0%

 

 

 

 

 

 

 

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

 

 

915

 

 

932,678

 

Indiana Finance Authority, Refunding
RB, Duke Energy Indiana Inc.,
Series C, 4.95%, 10/01/40

 

 

2,000

 

 

1,995,500

 

Indiana Health Facility Financing
Authority, Refunding RB:

 

 

 

 

 

 

 

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

 

 

2,095

 

 

2,168,933

 

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

 

 

3,675

 

 

3,452,515

 

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

 

 

1,200

 

 

1,304,748

 

 

 

 

 

 

 

 

 

 

 

 

9,854,374

 

Kansas — 0.6%

 

 

 

 

 

 

 

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

 

 

1,820

 

 

1,828,172

 

Kentucky — 0.3%

 

 

 

 

 

 

 

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

 

 

1,105

 

 

1,132,492

 

Maryland — 0.5%

 

 

 

 

 

 

 

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

 

 

475

 

 

484,776

 

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

 

 

1,000

 

 

1,011,030

 

 

 

 

 

 

 

 

 

 

 

 

1,495,806

 

Massachusetts — 0.6%

 

 

 

 

 

 

 

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

 

 

1,955

 

 

1,992,106

 

 

 

 

2

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2010


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan — 0.7%

 

 

 

 

 

 

 

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

 

$

2,305

 

$

2,128,552

 

Missouri — 1.8%

 

 

 

 

 

 

 

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

 

 

6,000

 

 

5,758,380

 

Montana — 0.7%

 

 

 

 

 

 

 

Montana Facility Finance Authority,
Refunding RB, Sisters of Leavenworth,
Series A, 4.75%, 1/01/40

 

 

2,480

 

 

2,437,319

 

Multi-State — 4.0%

 

 

 

 

 

 

 

Centerline Equity Issuer Trust (e)(f):

 

 

 

 

 

 

 

5.75%, 5/15/15

 

 

1,000

 

 

1,045,210

 

6.00%, 5/15/15

 

 

5,000

 

 

5,208,000

 

6.00%, 5/15/19

 

 

3,500

 

 

3,685,990

 

6.30%, 5/15/19

 

 

3,000

 

 

3,172,620

 

 

 

 

 

 

 

 

 

 

 

 

13,111,820

 

Nebraska — 0.9%

 

 

 

 

 

 

 

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

 

 

1,245

 

 

1,261,036

 

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

 

 

1,635

 

 

1,645,137

 

 

 

 

 

 

 

 

 

 

 

 

2,906,173

 

Nevada — 0.8%

 

 

 

 

 

 

 

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

 

 

2,465

 

 

2,476,290

 

New Jersey — 11.4%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.75%, 6/15/34

 

 

3,810

 

 

3,756,165

 

Cigarette Tax (Radian), 5.50%,
6/15/31

 

 

4,825

 

 

4,650,190

 

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

 

 

10,100

 

 

10,121,008

 

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

 

 

10,000

 

 

10,479,400

 

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

 

 

7,475

 

 

8,191,553

 

 

 

 

 

 

 

 

 

 

 

 

37,198,316

 

New Mexico — 1.8%

 

 

 

 

 

 

 

New Mexico Income Housing Authority,
RB, Villa Del Oso Apartments Project,
Series A, 6.00%, 1/01/13 (g)

 

 

5,200

 

 

5,966,272

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

New York — 2.8%

 

 

 

 

 

 

 

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

 

$

985

 

$

394,000

 

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

 

 

6,700

 

 

6,828,573

 

Port Authority of New York & New Jersey,
RB, Continental Airlines Inc. and
Eastern Air Lines Inc. Project,
LaGuardia, AMT, 9.00%, 12/01/10

 

 

2,075

 

 

2,078,009

 

 

 

 

 

 

 

 

 

 

 

 

9,300,582

 

North Carolina — 2.8%

 

 

 

 

 

 

 

City of Charlotte North Carolina, RB,
Series B, 5.00%, 7/01/38

 

 

1,025

 

 

1,106,733

 

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

 

 

5,731,575

 

North Carolina Medical Care
Commission, RB, Duke University
Health System, Series A:

 

 

 

 

 

 

 

5.00%, 6/01/39

 

 

685

 

 

700,454

 

5.00%, 6/01/42

 

 

1,525

 

 

1,552,679

 

 

 

 

 

 

 

 

 

 

 

 

9,091,441

 

Ohio — 2.3%

 

 

 

 

 

 

 

Buckeye Tobacco Settlement Financing
Authority, RB, Asset-Backed, Senior
Series A-2, 6.50%, 6/01/47

 

 

1,190

 

 

936,911

 

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

 

 

3,405

 

 

3,487,537

 

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

 

 

3,025

 

 

3,112,634

 

 

 

 

 

 

 

 

 

 

 

 

7,537,082

 

Oklahoma — 1.2%

 

 

 

 

 

 

 

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

 

 

3,925

 

 

3,948,550

 

Pennsylvania — 7.1%

 

 

 

 

 

 

 

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

 

 

2,765

 

 

2,184,709

 

Monroe County Hospital Authority
Pennsylvania, RB, Hospital, Pocono
Medical Center, 6.00%, 1/01/14 (g)

 

 

5,000

 

 

5,745,950

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2010

3


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Pennsylvania (concluded)

 

 

 

 

 

 

 

Pennsylvania Economic Development
Financing Authority, RB:

 

 

 

 

 

 

 

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

 

$

5,175

 

$

5,249,779

 

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

 

 

2,065

 

 

2,142,210

 

Reliant Energy, Series A, AMT,
6.75%, 12/01/36

 

 

6,130

 

 

6,323,463

 

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

 

 

1,700

 

 

1,750,932

 

 

 

 

 

 

 

 

 

 

 

 

23,397,043

 

Puerto Rico — 7.9%

 

 

 

 

 

 

 

Commonwealth of Puerto Rico, GO,
Refunding, Public Improvement,
Series C, 6.00%, 7/01/39

 

 

3,220

 

 

3,406,953

 

Puerto Rico Sales Tax Financing Corp.,
RB:

 

 

 

 

 

 

 

CAB, Series A, 6.48%, 8/01/31 (a)

 

 

11,700

 

 

3,244,410

 

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

 

 

8,600

 

 

2,236,946

 

CAB, Series A, 6.57%, 8/01/33 (a)

 

 

13,600

 

 

3,302,216

 

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

 

 

5,500

 

 

1,253,670

 

CAB, Series A, 6.60%, 8/01/35 (a)

 

 

14,055

 

 

2,999,618

 

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

 

 

12,875

 

 

2,577,833

 

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

 

 

6,100

 

 

6,890,804

 

 

 

 

 

 

 

 

 

 

 

 

25,912,450

 

South Carolina — 2.7%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.50%, 10/01/26

 

 

2,280

 

 

2,298,422

 

5.50%, 10/01/31

 

 

3,250

 

 

3,270,182

 

South Carolina Jobs-EDA, Refunding RB:

 

 

 

 

 

 

 

Palmetto Health Alliance, Series A,
6.25%, 8/01/31

 

 

2,640

 

 

2,704,416

 

Palmetto Health, Series C, 6.88%,
8/01/13 (g)

 

 

550

 

 

646,333

 

 

 

 

 

 

 

 

 

 

 

 

8,919,353

 

Tennessee — 3.9%

 

 

 

 

 

 

 

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

 

 

20,405

 

 

11,526,173

 

Rutherford County Health & Educational
Facilities Board, RB, Ascension Health
Senior Credit Group, 5.00%,
11/15/40

 

 

1,120

 

 

1,133,451

 

 

 

 

 

 

 

 

 

 

 

 

12,659,624

 

Texas — 17.4%

 

 

 

 

 

 

 

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

 

 

2,400

 

 

1,485,840

 

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

 

 

1,400

 

 

1,344,000

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Texas (concluded)

 

 

 

 

 

 

 

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

 

$

1,675

 

$

1,795,701

 

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

 

 

9,145

 

 

10,518,670

 

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

 

 

10,000

 

 

10,022,700

 

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

 

 

25,375

 

 

3,853,955

 

Lower Colorado River Authority,
Refunding RB (NPFGC):

 

 

 

 

 

 

 

5.00%, 5/15/13 (g)

 

 

35

 

 

38,884

 

5.00%, 5/15/13 (g)

 

 

30

 

 

33,385

 

5.00%, 5/15/31

 

 

1,235

 

 

1,254,674

 

Series A, 5.00%, 5/15/13 (g)

 

 

5

 

 

5,564

 

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

 

 

6,790

 

 

7,250,294

 

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

 

 

3,600

 

 

3,652,524

 

Texas Private Activity Bond Surface
Transportation Corp., RB, Senior Lien,
Note Mobility, 6.88%, 12/31/39

 

 

4,200

 

 

4,414,704

 

Texas State Turnpike Authority, RB
(AMBAC):

 

 

 

 

 

 

 

CAB, 6.08%, 8/15/36 (a)

 

 

35,000

 

 

6,331,500

 

CAB, 6.09%, 8/15/37 (a)

 

 

10,000

 

 

1,681,500

 

First Tier, Series A, 5.00%, 8/15/42

 

 

3,585

 

 

3,424,750

 

 

 

 

 

 

 

 

 

 

 

 

57,108,645

 

Utah — 1.2%

 

 

 

 

 

 

 

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

 

 

3,960

 

 

4,032,904

 

Virginia — 3.9%

 

 

 

 

 

 

 

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

 

 

1,460

 

 

1,456,306

 

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

 

 

9,000

 

 

9,327,510

 

Tobacco Settlement Financing Corp.
Virginia, Refunding RB, Senior
Series B1, 5.00%, 6/01/47

 

 

3,205

 

 

2,127,704

 

 

 

 

 

 

 

 

 

 

 

 

12,911,520

 

Washington — 0.6%

 

 

 

 

 

 

 

County of King Washington, Refunding
RB (AGM), 5.00%, 1/01/36

 

 

1,960

 

 

2,027,483

 

Wisconsin — 2.1%

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,790

 

 

1,847,172

 

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

 

 

910

 

 

928,555

 

 

 

 

4

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2010


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Wisconsin (concluded)

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, RB (concluded):

 

 

 

 

 

 

 

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

 

$

3,930

 

$

4,015,399

 

 

 

 

 

 

 

 

 

 

 

 

6,791,126

 

Wyoming — 1.6%

 

 

 

 

 

 

 

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

 

 

3,355

 

 

3,561,332

 

Wyoming Municipal Power Agency, RB,
Series A:

 

 

 

 

 

 

 

5.50%, 1/01/33

 

 

800

 

 

843,568

 

5.50%, 1/01/38

 

 

750

 

 

785,955

 

 

 

 

 

 

 

 

 

 

 

 

5,190,855

 

Total Municipal Bonds – 134.1%

 

 

 

 

 

439,545,393

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (i)

 

 

 

 

 

 

 

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

 

 

2,556,453

 

California — 2.3%

 

 

 

 

 

 

 

California Educational Facilities
Authority, RB, University of Southern
California, Series A, 5.25%, 10/01/18

 

 

2,850

 

 

3,062,753

 

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

 

 

2,530

 

 

2,603,547

 

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

 

 

1,840

 

 

1,956,809

 

 

 

 

 

 

 

 

 

 

 

 

7,623,109

 

Colorado — 2.2%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB,
Catholic Health:

 

 

 

 

 

 

 

Series C-3 (FSA), 5.10%, 10/01/41

 

 

4,230

 

 

4,276,488

 

Series C-7 (AGM), 5.00%, 9/01/36

 

 

2,710

 

 

2,736,368

 

 

 

 

 

 

 

 

 

 

 

 

7,012,856

 

Connecticut — 3.3%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

 

5,170

 

 

5,447,526

 

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

 

 

5,130

 

 

5,354,232

 

 

 

 

 

 

 

 

 

 

 

 

10,801,758

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (i)

 

Par
(000)

 

Value

 

Georgia — 1.5%

 

 

 

 

 

 

 

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

 

$

4,638

 

$

4,881,677

 

Massachusetts — 1.0%

 

 

 

 

 

 

 

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

 

 

3,150

 

 

3,261,384

 

New Hampshire — 0.7%

 

 

 

 

 

 

 

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

 

 

2,219

 

 

2,413,051

 

New York — 4.4%

 

 

 

 

 

 

 

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

 

 

1,710

 

 

1,906,723

 

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

 

 

9,284

 

 

9,603,342

 

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

 

 

2,850

 

 

2,911,617

 

 

 

 

 

 

 

 

 

 

 

 

14,421,682

 

Virginia — 2.9%

 

 

 

 

 

 

 

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

 

 

5,910

 

 

6,261,704

 

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

 

 

3,180

 

 

3,209,701

 

 

 

 

 

 

 

 

 

 

 

 

9,471,405

 

Washington — 3.6%

 

 

 

 

 

 

 

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

 

 

3,029

 

 

3,202,343

 

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

 

 

8,113

 

 

8,586,887

 

 

 

 

 

 

 

 

 

 

 

 

11,789,230

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts – 22.7%

 

 

 

 

 

74,232,605

 

Total Long-Term Investments
(Cost – $504,279,694) – 156.8%

 

 

 

 

 

513,777,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.25% (j)(k)

 

 

1,178,928

 

 

1,178,928

 

Total Short-Term Securities
(Cost – $1,178,928) – 0.4%

 

 

 

 

 

1,178,928

 

 

 

 

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2010

5

 

 

 


 

 

 

 

Schedule of Investments (concluded)

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

Value

 

Total Investments
(Cost – $505,458,622*) – 157.2%

 

$

514,956,926

 

Other Assets Less Liabilities – 1.6%

 

 

5,387,637

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable – (12.6)%

 

 

(41,398,896

)

Preferred Shares, at Redemption Value – (46.2)%

 

 

(151,313,528

)

 

 

Net Assets Applicable of Common Shares – 100.0%

 

$

327,632,139

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of May 31, 2010, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

Aggregate cost

 

$

464,090,584

 

 

 

Gross unrealized appreciation

 

$

19,953,433

 

Gross unrealized depreciation

 

 

(10,459,527

)

 

 

Net unrealized appreciation

 

$

9,493,906

 

 

 

 

 

(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)

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 reflects the current yield.

 

 

(e)

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.

 

 

(f)

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.

 

 

(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)

Variable rate security. Rate shown is as of report date.

 

 

(i)

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.

 

 

(j)

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, 2009

 

Net Activity

 

Shares Held
at May 31,
2010

 

Income

 

FFI Institutional
Tax-Exempt Fund

 

 

13,805,067

 

 

(12,626,139

)

 

1,178,928

 

$

12,008

 


 

 

(k)

Represents the current yield as of report date.

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments, which are 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)

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 other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its semi-annual report.

The following table summarizes the inputs used as of May 31, 2010 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

—

 

$

513,777,998

 

 

—

 

$

513,777,998

 

Short-Term
Securities

 

$

1,178,928

 

 

—

 

 

—

 

 

1,178,928

 

Total

 

$

1,178,928

 

$

513,777,998

 

 

—

 

$

514,956,926

 

 

 

 

 

 

 

1

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

 

 

 

6

BLACKROCK MUNICIPAL INCOME TRUST II

MAY 31, 2010

 

 

 

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 13(a)-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/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer of
    BlackRock Municipal Income Trust II
   
  Date: July 23, 2010
   
  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/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer (principal executive officer) of
    BlackRock Municipal Income Trust II
   
  Date: July 23, 2010
   
 

By:

 /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Municipal Income Trust II
   
  Date: July 23, 2010