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: 9/30/05
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, 2005 (UNAUDITED)
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
Corporate Bonds 168.7%
AEROSPACE 1.4%
$1,175 K & F Acquisition, Inc. 7.750 % 11/15/14 $ 1,192,625
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BROADCASTING 1.0%
290 Lin Television Corp., 144A - Private Placement (a) 6.500 05/15/13 276,225
515 Salem Communications Corp. 7.750 12/15/10 538,819
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815,044
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CABLE 10.2%
1,175 Cablevision Systems Corp. (b) 7.890 04/01/09 1,210,250
1,490 Echostar DBS Corp. 6.375 10/01/11 1,484,412
785 Echostar DBS Corp. 6.625 10/01/14 781,075
2,195 Intelsat Bermuda Ltd., 144A - Private Placement (Bermuda) (a) (b) 8.695 01/15/12 2,244,387
80 Intelsat Bermuda Ltd., 144A - Private Placement (Bermuda) (a) 8.250 01/15/13 80,900
1,700 Kabel Deutschland GMBH, 144A - Private Placement (Germany) (a) 10.625 07/01/14 1,887,000
693 PanAmSat Corp. 9.000 08/15/14 734,580
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8,422,604
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CHEMICALS 12.6%
1,070 Equistar Chemicals LP 10.125 09/01/08 1,155,600
600 Equistar Chemicals LP 10.625 05/01/11 657,000
335 Huntsman Advanced Materials LLC 11.000 07/15/10 376,875
740 Innophos, Inc.,144A - Private Placement (a) 8.875 08/15/14 760,350
335 ISP Chemco, Inc. 10.250 07/01/11 363,056
1,575 ISP Holdings, Inc. 10.625 12/15/09 1,673,437
250 Koppers, Inc. 9.875 10/15/13 277,500
1,350 Lyondell Chemical Co. 10.500 06/01/13 1,532,250
95 Millennium America, Inc. 7.000 11/15/06 97,491
905 Millennium America, Inc. 9.250 06/15/08 977,400
930 Nalco Co. 7.750 11/15/11 955,575
860 Rhodia SA (France) 8.875 06/01/11 817,000
762 Rockwood Specialties Group, Inc. 10.625 05/15/11 834,390
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10,477,924
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CONSUMER PRODUCTS 6.0%
470 Amscan Holdings, Inc. 8.750 05/01/14 413,600
365 Oxford Industrials, Inc. 8.875 06/01/11 381,425
2,150 Phillips Van-Heusen Corp. 7.250 02/15/11 2,171,500
1,105 Rayovac Corp. 8.500 10/01/13 1,071,850
335 Spectrum Brands, Inc. 7.375 02/01/15 303,175
544 Tempur Pedic, Inc. 10.250 08/15/10 595,680
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4,937,230
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DIVERSIFIED MEDIA 9.1%
740 AMC Entertainment, Inc. (b) 8.040 08/15/10 747,400
1,300 CanWest Media, Inc. (Canada) 10.625 05/15/11 1,420,250
1,425 CanWest Media, Inc. (Canada) 8.000 09/15/12 1,519,406
685 Dex Media West Finance Corp. 9.875 08/15/13 759,494
370 Houghton Mifflin Co. 8.250 02/01/11 383,875
1,075 Houghton Mifflin Co. 9.875 02/01/13 1,144,875
1,500 Primedia, Inc. 8.875 05/15/11 1,578,750
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7,554,050
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ENERGY 17.2%
795 CHC Helicopter Corp. (Canada) 7.375 05/01/14 818,850
685 CHC Helicopter Corp., 144A - Private Placement (Canada) (a) 7.375 05/01/14 705,550
1,825 Chesapeake Energy Corp. 6.625 01/15/16 1,856,937
1,870 CITGO Petroleum Corp. 6.000 10/15/11 1,879,350
330 Compagnie Generale de Geophysique, SA, 144A - Private Placement (France) (a) 7.500 05/15/15 344,850
1,500 Frontier Oil Corp. 6.625 10/01/11 1,554,375
160 Hanover Compressor Co. 8.625 12/15/10 173,200
670 Hanover Compressor Co. 9.000 06/01/14 747,887
288 Hanover Equipment Trust 8.500 09/01/08 300,960
280 Hanover Equipment Trust 8.750 09/01/11 298,900
960 Hilcorp Energy Finance Corp., 144A - Private Placement (a) 10.500 09/01/10 1,060,800
328 Magnum Hunter Resources, Inc. 9.600 03/15/12 357,520
650 Pacific Energy Partners 7.125 06/15/14 677,625
750 Pogo Producing Co., 144A - Private placement (a) 6.875 10/01/17 764,062
434 Port Arthur Finance Corp. 12.500 01/15/09 497,027
315 Tesoro Petroleum Corp. 9.625 04/01/12 348,469
1,785 Vintage Petroleum, Inc. 7.875 05/15/11 1,874,250
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14,260,612
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FINANCIAL 1.0%
773 Refco Finance Holdings LLC 9.000 08/01/12 844,502
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FOOD & DRUG 3.9%
1,200 Delhaize America, Inc. 8.125 04/15/11 1,306,574
265 Jean Coutu Group (PJC), Inc. (Canada) 7.625 08/01/12 270,962
530 Jean Coutu Group (PJC), Inc. (Canada) 8.500 08/01/14 530,000
2,750 Jitney-Jungle Stores America, Inc. (c) (d) (e) 12.000 03/01/06 0
1,105 Rite Aid Corp. 8.125 05/01/10 1,132,625
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3,240,161
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FOOD & TOBACCO 9.7%
1,300 Constellation Brands, Inc. 8.000 02/15/08 1,371,500
595 Michael Foods, Inc. 8.000 11/15/13 610,619
1,335 Pilgrim's Pride Corp. 9.625 09/15/11 1,441,800
405 Pilgrim's Pride Corp. 9.250 11/15/13 447,525
1,145 RJ Reynolds Tobacco Holdings, Inc., 144A - Private Placement (a) 6.500 07/15/10 1,147,862
380 Smithfield Foods, Inc. 7.625 02/15/08 395,200
1,810 Smithfield Foods, Inc. 8.000 10/15/09 1,923,125
685 Smithfield Foods, Inc. 7.000 08/01/11 702,125
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8,039,756
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FOREST PRODUCTS 9.9%
575 Abitibi-Consolidated, Inc. (Canada) 8.550 08/01/10 587,937
890 Abitibi-Consolidated, Inc. (Canada) 6.000 06/20/13 785,425
1,680 Georgia-Pacific Corp. 8.875 02/01/10 1,881,600
1,000 Graphic Packaging International, Inc. 9.500 08/15/13 945,000
2,370 Owens-Brockway Glass Containers, Inc. 8.875 02/15/09 2,500,350
170 Pliant Corp. 11.125 09/01/09 147,050
395 Pliant Corp. 13.000 06/01/10 189,600
1,855 Tembec Industries, Inc. (Canada) 7.750 03/15/12 1,187,200
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8,224,162
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GAMING & LEISURE 15.6%
750 Ceasars Entertainment 8.875 09/15/08 822,187
1,610 Harrahs Operating Co., Inc. 7.875 12/15/05 1,624,087
136 HMH Properties, Inc. 7.875 08/01/08 138,380
1,135 Host Marriott LP 7.125 11/01/13 1,164,794
965 Host Marriott LP 6.375 03/15/15 940,875
1,090 Isle of Capri Casinos, Inc. 7.000 03/01/14 1,050,487
740 Las Vegas Sands Corp. 6.375 02/15/15 717,800
2,420 MGM Mirage, Inc. 6.000 10/01/09 2,401,850
265 MGM Mirage, Inc. 5.875 02/27/14 253,075
1,510 Mohegan Tribal Gaming Authority 7.125 08/15/14 1,570,400
870 Park Place Entertainment Corp. 7.875 12/15/05 877,612
1,160 Station Casinos, Inc. 6.000 04/01/12 1,164,350
175 Station Casinos, Inc. 6.875 03/01/16 178,281
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12,904,178
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HEALTHCARE 12.8%
1,500 Amerisourcebergen Corp., 144A - Private Placement (a) 5.625 09/15/12 1,485,000
595 Community Health Systems, Inc. 6.500 12/15/12 599,463
605 Davita, Inc. 6.625 03/15/13 615,588
1,985 Extendicare Health Services, Inc. 6.875 05/01/14 1,965,150
285 Fisher Scientific International, Inc. 6.750 08/15/14 299,963
370 Fisher Scientific International, Inc., 144A - Private Placement (a) 6.125 07/01/15 372,775
97 Fresenius Medical Care Capital Trust II 7.875 02/01/08 1,011,225
415 Fresenius Medical Care Capital Trust IV 7.875 06/15/11 448,200
482 HCA, Inc. 8.750 09/01/10 534,731
895 HCA, Inc. 6.375 01/15/15 889,944
150 National Nephrology Associates, Inc., 144A - Private Placement (a) 9.000 11/01/11 167,625
750 Res-Care, Inc., 144A - Private Placement (a) (f) 7.750 10/15/13 757,500
1,405 Ventas Realty Ltd. Partnership, 144A - Private Placement (a) 6.750 06/01/10 1,433,100
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10,580,264
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HOUSING 5.3%
2,165 Associated Materials, Inc. (g) 0/11.250 03/01/14 1,093,325
1,090 Interface, Inc. 9.500 02/01/14 1,095,450
440 RMCC Acquisition Co., 144A - Private Placement (a) 9.500 11/01/12 446,600
650 Technical Olympic USA, Inc. 9.000 07/01/10 676,000
505 Technical Olympic USA, Inc. 9.000 07/01/10 525,200
540 Technical Olympic USA, Inc. 10.375 07/01/12 571,050
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4,407,625
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INFORMATION TECHNOLOGY 3.8%
1,340 Iron Mountain, Inc. 8.625 04/01/13 1,410,350
780 Iron Mountain, Inc. 7.750 01/15/15 795,600
1,010 Sanmina-Sci Corp. 6.750 03/01/13 964,550
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3,170,500
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MANUFACTURING 3.3%
925 JohnsonDiversey, Inc. 9.625 05/15/12 927,313
764 Manitowoc, Inc. 10.500 08/01/12 857,590
590 Propex Fabrics, Inc. 10.000 12/01/12 547,225
510 Trimas Corp. 9.875 06/15/12 420,750
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2,752,878
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METALS 4.6%
361 Doe Run Resources Corp. (Acquired 02/15/01 to 10/15/04, Cost $316,912) (h) (i) 11.750 11/01/08 290,720
245 Foundation, PA Coal Co. 7.250 08/01/14 256,638
365 General Cable Corp. 9.500 11/15/10 385,988
1,460 Novelis, Inc.,144A - Private Placement (Canada) (a) 7.250 02/15/15 1,387,000
765 UCAR Finance, Inc. 10.250 02/15/12 824,288
585 United States Steel Corp. 9.750 05/15/10 644,963
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3,789,597
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RETAIL 2.7%
830 Brown Shoe Co., Inc. 8.750 05/01/12 879,800
405 General Nutrition Center, Inc. 8.500 12/01/10 347,288
1,025 Petro Stopping Center Financial 9.000 02/15/12 1,014,750
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2,241,838
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SERVICES 5.9%
1,690 Allied Waste North America, Inc. 8.875 04/01/08 1,770,275
950 Allied Waste North America, Inc. 8.500 12/01/08 995,125
45 Allied Waste North America, Inc. 7.875 04/15/13 46,125
890 Buhrmann US, Inc. 8.250 07/01/14 914,475
295 Buhrmann US, Inc. 7.875 03/01/15 297,950
700 MSW Energy Holdings II LLC 7.375 09/01/10 729,750
150 MSW Energy Holdings LLC 8.500 09/01/10 161,625
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4,915,325
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TELECOMMUNICATIONS 6.8%
1,325 Axtel SA (Mexico) 11.000 12/15/13 1,493,938
500 Exodus Communications, Inc. (c) (d) (e) 11.250 07/01/08 0
1,000 Qwest Corp. 7.875 09/01/11 1,047,500
3,000 Qwest Corp., 144A - Private Placement (a) (b) 7.120 06/15/13 3,135,000
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5,676,438
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TRANSPORTATION 11.5%
340 Arvin Meritor, Inc. 8.750 03/01/12 334,900
1,130 Ford Motor Credit Co. 5.625 10/01/08 1,068,525
455 Ford Motor Credit Co. 5.800 01/12/09 424,859
1,175 General Motors Acceptance Corp. 4.375 12/10/07 1,106,404
515 General Motors Acceptance Corp. 6.875 09/15/11 469,003
530 General Motors Acceptance Corp. 6.875 08/28/12 474,955
295 Hertz Corp. 7.400 03/01/11 286,175
880 Hertz Corp. 7.625 06/01/12 845,970
1,110 Lear Corp. 8.110 05/15/09 1,104,767
2,250 Sonic Automotive, Inc. 8.625 08/15/13 2,238,750
1,055 TRW Automotive, Inc. 9.375 02/15/13 1,149,950
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9,504,258
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UTILITY 10.3%
127 AES Corp. 9.375 09/15/10 140,653
41 AES Corp. 8.875 02/15/11 44,690
850 AES Corp. 7.750 03/01/14 905,250
115 CMS Energy Corp. 7.500 01/15/09 121,038
700 CMS Energy Corp. 8.500 04/15/11 782,250
615 CMS Energy Corp. 6.300 02/01/12 622,688
1,010 Dynegy Holdings, Inc. 6.875 04/01/11 992,325
640 Dynegy Holdings, Inc., 144A - Private Placement (a) 9.875 07/15/10 700,800
405 IPALCO Enterprises, Inc. 8.625 11/14/11 451,575
835 Monongahela Power Co. 5.000 10/01/06 836,908
510 Nevada Power Co. 8.250 06/01/11 568,650
552 Nevada Power Co. 9.000 08/15/13 615,826
620 PSEG Energy Holdings 7.750 04/16/07 637,050
20 PSEG Energy Holdings 8.625 02/15/08 21,000
695 Reliant Energy, Inc. 6.750 12/15/14 686,313
340 Southern Natural Gas Co. 8.875 03/15/10 369,209
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8,496,225
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WIRELESS COMMUNICATIONS 4.1%
1,775 Nextel Communications, Inc. 6.875 10/31/13 1,885,748
1,000 Rural Cellular Corp. 8.250 03/15/12 1,055,000
435 Rural Cellular Corp. (b) 8.370 03/15/10 450,225
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3,390,973
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TOTAL CORPORATE BONDS $139,838,769
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Description VALUE
Equities 1.1%
DecisionOne Corp. (5,483 common shares) (e) (j) 0
DecisionOne Corp. (12,056 common stock warrants) (e) (j) 0
Doe Run Resources Corp. (1 common stock warrant) (e) (j) 0
HCI Direct, Inc. (60,714 common shares) (e) (j) 910,710
Hosiery Corp. of America, Inc. (1,000 common shares) (e) (j) 0
VS Holdings, Inc. (20,207 common shares) (e) (j) 0
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TOTAL EQUITIES 910,710
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TOTAL LONG-TERM INVESTMENTS 169.8%
(Cost $145,239,203) 140,749,479
Repurchase Agreement 5.3%
State Street Bank & Trust Co. ($4,362,000 par
collateralized by U.S. Government obligations in a
pooled cash account, interest rate of 3.65%, dated
09/30/05, to be sold on 10/03/05 at $4,363,327) 4,362,000
(Cost $4,362,000) ------------
TOTAL INVESTMENTS 175.1%
(Cost $149,601,203) 145,111,479
OTHER ASSETS IN EXCESS OF LIABILITIES 3.9% 3,250,910
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (79.0%) 65,499,064
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NET ASSETS APPLICABLE TO COMMON SHARES 100.0% $ 82,863,325
=============
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, 2005.
(c) Non-income producing as security is in default.
(d) This borrower has filed for protection in federal bankruptcy court.
(e) Market value is determined in accordance with procedures established in
good faith by the Board of Trustees.
(f) Securities purchased on a when-issued or delayed delivery basis.
(g) Security is a "step-up" bond where the coupon increases or steps up at a
predetermined date.
(h) Payment-in-kind security.
(i) These securities are restricted and may be resold only in transactions
exempt from registration which are normally those transactions with
qualified institutional buyers. Restricted securities comprise 0.4% of net
assets applicable to common shares.
(j) Non-income producing security.
See Notes to Financial Statements
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 21, 2005
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
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Name: Ronald E. Robison
Title: Principal Executive Officer
Date: November 21, 2005
By: /s/ Phillip G. Goff
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Name: Phillip G. Goff
Title: Principal Financial Officer
Date: November 21, 2005