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
(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas, New York, New York 10020
(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: 3/31/06
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 MARCH 31, 2006 (UNAUDITED)
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
Corporate Bonds 167.0%
AEROSPACE 1.5%
$ 1,175 K & F Acquisition, Inc. 7.750% 11/15/14 $ 1,195,562
----------------
BROADCASTING 2.0%
835 Lin Television Corp. 6.500 05/15/13 789,075
335 Lin Television Corp., Ser B 6.500 05/15/13 316,575
515 Salem Communications Corp. 7.750 12/15/10 530,450
----------------
1,636,100
----------------
CABLE 9.3%
1,175 Cablevision Systems Corp. (Floating Rate) 8.716 04/01/09 1,238,156
845 CCH I LLC 11.000 10/01/15 706,631
1,740 Echostar DBS Corp. 6.375 10/01/11 1,709,550
785 Echostar DBS Corp. 6.625 10/01/14 762,431
80 Intelsat Bermuda Ltd. (Bermuda) 8.250 01/15/13 81,800
2,195 Intelsat Bermuda Ltd. (Floating Rate)
(Bermuda) 9.614 01/15/12 2,241,644
693 PanAmSat Corp. 9.000 08/15/14 732,847
----------------
7,473,059
----------------
CHEMICALS 10.1%
1,070 Equistar Chemicals LP 10.125 09/01/08 1,142,225
600 Equistar Chemicals LP 10.625 05/01/11 652,500
740 Innophos, Inc. 8.875 08/15/14 773,300
171 Koppers, Inc. 9.875 10/15/13 188,100
1,350 Lyondell Chemical Co. 10.500 06/01/13 1,501,875
905 Millennium America, Inc. 9.250 06/15/08 924,231
1,450 Nalco Co. 7.750 11/15/11 1,475,375
762 Rockwood Specialties Group, Inc. 10.625 05/15/11 840,105
610 Westlake Chemicals Corp. 6.625 01/15/16 606,187
----------------
8,103,898
----------------
CONSUMER PRODUCTS 6.5%
1,200 Case New Holland, Inc., 144A - Private
Placement (a) 7.125 03/01/14 1,191,000
365 Oxford Industrials, Inc. 8.875 06/01/11 377,775
2,150 Phillips Van-Heusen Corp. 7.250 02/15/11 2,203,750
105 Spectrum Brands, Inc. 7.375 02/01/15 91,875
740 Steinway Musical Instruments, Inc., 144A -
Private Placement (a) 7.000 03/01/14 743,700
544 Tempur Pedic, Inc. 10.250 08/15/10 585,480
----------------
5,193,580
----------------
DIVERSIFIED MEDIA 7.2%
740 AMC Entertainment, Inc. (Floating Rate) 8.999 08/15/10 767,750
1,425 CanWest Media, Inc. (Canada) 8.000 09/15/12 1,467,750
685 Dex Media West Finance Corp. 9.875 08/15/13 761,206
370 Houghton Mifflin Co. 8.250 02/01/11 384,800
1,075 Houghton Mifflin Co. 9.875 02/01/13 1,161,000
775 Primedia, Inc. 8.875 05/15/11 759,500
475 Quebecor World Cap Corp., 144A - Private
Placement (Canada) (a) 8.750 03/15/16 465,636
----------------
5,767,642
----------------
ENERGY 15.4%
1,440 CHC Helicopter Corp. (Canada) 7.375 05/01/14 1,476,000
1,825 Chesapeake Energy Corp. 6.625 01/15/16 1,829,562
350 Chesapeake Energy Corp. 7.500 09/15/13 367,500
330 Compagnie Generale de Geophysique, SA
(France) 7.500 05/15/15 341,550
1,500 Frontier Oil Corp. 6.625 10/01/11 1,503,750
160 Hanover Compressor Co. 8.625 12/15/10 168,600
670 Hanover Compressor Co. 9.000 06/01/14 723,600
288 Hanover Equipment Trust 8.500 09/01/08 295,920
280 Hanover Equipment Trust 8.750 09/01/11 294,350
1,250 Hilcorp Energy Finance Corp., 144A - Private
Placement (a) 7.750 11/01/15 1,253,125
467 Hilcorp Energy Finance Corp., 144A - Private
Placement (a) 10.500 09/01/10 516,619
328 Magnum Hunter Resources, Inc. 9.600 03/15/12 353,420
650 Pacific Energy Partners 7.125 06/15/14 664,625
750 Pogo Producing Co. 6.875 10/01/17 744,375
1,785 Vintage Petroleum, Inc. 7.875 05/15/11 1,856,614
----------------
12,389,610
----------------
FINANCIAL 1.8%
1,455 Residential Capital Corp. 6.375 06/30/10 1,467,142
----------------
FOOD & DRUG 6.1%
1,070 Albertson's, Inc. 7.250 05/01/13 1,059,225
405 Albertson's, Inc. 7.500 02/15/11 412,090
1,200 Delhaize America, Inc. 8.125 04/15/11 1,301,447
265 Jean Coutu Group (PJC), Inc. (Canada) 7.625 08/01/12 259,037
790 Jean Coutu Group (PJC), Inc. (Canada) 8.500 08/01/14 728,775
2,750 Jitney-Jungle Stores America, Inc. (b) (c) (d) 12.000 03/01/49 0
1,105 Rite Aid Corp. 8.125 05/01/10 1,134,006
----------------
4,894,580
----------------
FOOD & TOBACCO 13.7%
1,300 Constellation Brands, Inc. 8.000 02/15/08 1,352,000
595 Michael Foods, Inc. 8.000 11/15/13 609,131
930 Pilgrim's Pride Corp. 9.250 11/15/13 941,625
1,635 Pilgrim's Pride Corp. 9.625 09/15/11 1,712,662
1,930 RJ Reynolds Tobacco Holdings, Inc. 6.500 07/15/10 1,954,125
685 Smithfield Foods, Inc. 7.000 08/01/11 685,000
380 Smithfield Foods, Inc. 7.625 02/15/08 389,500
1,810 Smithfield Foods, Inc. 8.000 10/15/09 1,895,975
1,500 Tyson Foods, Inc. 6.600 04/01/16 1,484,239
----------------
11,024,257
----------------
FOREST PRODUCTS 7.8%
391 Abitibi-Consolidated, Inc. (Canada) 8.550 08/01/10 394,910
890 Abitibi-Consolidated, Inc. (Canada) 6.000 06/20/13 769,850
1,270 Crown Americas LLC, 144A - Private
Placement (a) 7.625 11/15/13 1,320,800
1,000 Graphic Packaging International, Inc. 9.500 08/15/13 940,000
2,370 Owens-Brockway Glass Containers, Inc. 8.875 02/15/09 2,479,612
170 Pliant Corp. (b) (c) 11.125 09/01/09 179,775
365 Pliant Corp. (b) (c) 13.000 06/01/10 151,475
----------------
6,236,422
----------------
GAMING & LEISURE 14.6%
750 Caesars Entertainment, Inc. 8.875 09/15/08 804,375
136 HMH Properties, Inc. 7.875 08/01/08 137,700
965 Host Marriott LP 6.375 03/15/15 954,144
1,135 Host Marriott LP 7.125 11/01/13 1,160,537
1,475 Isle of Capri Casinos, Inc. 7.000 03/01/14 1,463,938
1,370 Las Vegas Sands Corp. 6.375 02/15/15 1,322,050
265 MGM Mirage, Inc. 5.875 02/27/14 251,088
2,420 MGM Mirage, Inc. 6.000 10/01/09 2,395,800
1,510 Mohegan Tribal Gaming Authority 7.125 08/15/14 1,528,875
395 Starwood Hotels & Resorts Worldwide, Inc. 7.875 05/01/12 431,538
1,160 Station Casinos, Inc. 6.000 04/01/12 1,149,850
175 Station Casinos, Inc. 6.875 03/01/16 176,750
----------------
11,776,645
----------------
HEALTHCARE 17.2%
1,875 Amerisourcebergen Corp., 144A - Private
Placement (a) 5.625 09/15/12 1,853,439
595 Community Health Systems, Inc. 6.500 12/15/12 579,381
605 Davita, Inc. 6.625 03/15/13 606,513
1,985 Extendicare Health Services, Inc. 6.875 05/01/14 2,054,475
655 Fisher Scientific International, Inc. 6.125 07/01/15 642,719
97 Fresenius Medical Care Capital Trust II 7.875 02/01/08 996,675
415 Fresenius Medical Care Capital Trust IV 7.875 06/15/11 441,975
700 HCA, Inc. 6.300 10/01/12 686,730
895 HCA, Inc. 6.375 01/15/15 875,556
882 HCA, Inc. 8.750 09/01/10 961,083
150 National Nephrology Associates, Inc., 144A -
Private Placement (a) 9.000 11/01/11 165,068
735 Omnicare, Inc. 6.750 12/15/13 735,000
750 Res-Care, Inc. 7.750 10/15/13 757,500
1,075 Tenet Healthcare Corp. 9.875 07/01/14 1,093,813
1,405 Ventas Realty LP 6.750 06/01/10 1,426,075
----------------
13,876,002
----------------
HOUSING 2.3%
1,090 Interface, Inc. 9.500 02/01/14 1,122,700
385 Technical Olympic USA, Inc. 9.000 07/01/10 396,550
340 Technical Olympic USA, Inc. 10.375 07/01/12 345,100
----------------
1,864,350
----------------
INFORMATION TECHNOLOGY 1.7%
1,340 Iron Mountain, Inc. 8.625 04/01/13 1,400,300
----------------
MANUFACTURING 3.4%
365 General Cable Corp. 9.500 11/15/10 396,025
925 JohnsonDiversey, Inc. 9.625 05/15/12 953,906
764 Manitowoc, Inc. 10.500 08/01/12 849,950
590 Propex Fabrics, Inc. 10.000 12/01/12 563,450
----------------
2,763,331
----------------
METALS 6.4%
245 Foundation, PA Coal Co. 7.250 08/01/14 249,900
1,310 Massey Energy Co., 144A - Private Placement
(a) 6.875 12/15/13 1,290,350
1,950 Novelis, Inc.,144A - Private Placement
(Canada) (a) 7.250 02/15/15 1,881,750
1,035 UCAR Finance, Inc. 10.250 02/15/12 1,110,038
585 United States Steel Corp. 9.750 05/15/10 634,725
----------------
5,166,763
----------------
RETAIL 5.6%
830 Brown Shoe Co., Inc. 8.750 05/01/12 879,800
1,400 JC Penney Corp., Inc. 8.000 03/01/10 1,514,212
1,050 Linens 'n Things, Inc., 144A - Private
Placement (Floating Rate) (a) 10.345 01/15/14 1,057,875
1,025 Petro Stopping Center Financial 9.000 02/15/12 1,035,250
----------------
4,487,137
----------------
SERVICES 5.3%
45 Allied Waste North America, Inc. 7.875 04/15/13 47,194
950 Allied Waste North America, Inc. 8.500 12/01/08 1,003,438
1,140 Allied Waste North America, Inc. 8.875 04/01/08 1,202,700
295 Buhrmann US, Inc. 7.875 03/01/15 300,163
790 Buhrmann US, Inc. 8.250 07/01/14 825,550
700 MSW Energy Holdings II LLC 7.375 09/01/10 724,500
150 MSW Energy Holdings LLC 8.500 09/01/10 159,750
----------------
4,263,295
----------------
TELECOMMUNICATIONS 7.9%
861 Axtel SA (Mexico) 11.000 12/15/13 981,540
500 Exodus Communications, Inc. (b) (c) (d) 11.250 07/01/08 0
1,000 Qwest Corp. 7.875 09/01/11 1,072,500
3,000 Qwest Corp. (Floating Rate) 8.160 06/15/13 3,315,000
940 Wind Acquisition Finance SA, 144A - Private
Placement (Luxembourg) (a) 10.750 12/01/15 1,019,900
----------------
6,388,940
----------------
TRANSPORTATION 8.1%
340 Arvin Meritor, Inc. 8.750 03/01/12 336,600
1,130 Ford Motor Credit Co. 5.625 10/01/08 1,033,959
1,175 General Motors Acceptance Corp. 4.375 12/10/07 1,090,161
120 General Motors Acceptance Corp. 6.875 09/15/11 111,973
710 General Motors Corp. 7.125 07/15/13 532,500
2,250 Sonic Automotive, Inc. 8.625 08/15/13 2,261,250
1,055 TRW Automotive, Inc. 9.375 02/15/13 1,145,994
----------------
6,512,437
----------------
UTILITY 9.0%
850 AES Corp. 7.750 03/01/14 896,750
41 AES Corp. 8.875 02/15/11 44,383
127 AES Corp. 9.375 09/15/10 139,065
615 CMS Energy Corp. 6.300 02/01/12 608,850
115 CMS Energy Corp. 7.500 01/15/09 118,881
700 CMS Energy Corp. 8.500 04/15/11 759,500
600 Colorado Interstate Gas Co., 144A - Private
Placement (a) 6.800 11/15/15 613,432
405 IPALCO Enterprises, Inc. 8.625 11/14/11 444,488
835 Monongahela Power Co. 5.000 10/01/06 832,719
510 Nevada Power Co. 8.250 06/01/11 562,468
552 Nevada Power Co. 9.000 08/15/13 610,718
1,185 PSEG Energy Holdings 8.625 02/15/08 1,241,288
340 Southern Natural Gas Co. 8.875 03/15/10 363,375
----------------
7,235,917
----------------
WIRELESS COMMUNICATIONS 4.1%
1,775 Nextel Communications, Inc. 6.875 10/31/13 1,832,835
1,000 Rural Cellular Corp. 8.250 03/15/12 1,045,000
435 Rural Cellular Corp. (Floating Rate) 9.410 03/15/10 448,050
----------------
3,325,885
----------------
TOTAL CORPORATE BONDS 134,442,854
----------------
DESCRIPTION VALUE
EQUITIES 0.9%
DecisionOne Corp., Class A (3,219 common
stock warrants) (d) (e) 0
DecisionOne Corp., Class B (5,547 common
stock warrants) (d) (e) 0
DecisionOne Corp., Class C (3,290 common
stock warrants) (d) (e) 0
DecisionOne Corp. (5,483 common shares)
(d) (e) 0
Doe Run Resources Corp. (1 common stock
warrant) (d) (e) 0
HCI Direct, Inc. (60,714 common shares)
(d) (e) 728,568
Hosiery Corp. of America, Inc. (1000 common
shares) (d) (e) 0
VS Holdings, Inc. (20,207 common shares)
(d) (e) 0
XO Holdings, Inc. (625 common shares) (e) 2,469
XO Holdings, Inc., Ser A (1,251 common stock
warrants) (e) 563
XO Holdings, Inc., Ser B (938 common stock
warrants) (e) 374
XO Holdings, Inc., Ser C (938 common stock
warrants) (e) 234
----------------
TOTAL EQUITIES 732,208
----------------
TOTAL LONG-TERM INVESTMENTS 167.9%
(Cost $139,700,523) 135,175,062
REPURCHASE AGREEMENT 10.6%
State Street Bank & Trust Co. ($8,513,000 par
collateralized by U.S. Government obligations in
a pooled cash account, interest rate of 4.72%,
dated 03/31/06, to be sold on 04/03/06 at 8,513,000
$8,516,348) ----------------
(Cost $8,513,000)
TOTAL INVESTMENTS 178.5%
(Cost $148,213,523) 143,688,062
OTHER ASSETS IN EXCESS OF LIABILITIES 2.9% 2,329,904
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (81.4%) (65,542,863)
----------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0% $ 80,475,103
================
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) Non-income producing as security is in default.
(c) This borrower has filed for protection in federal bankruptcy court.
(d) Market value is determined in accordance with procedures established
in good faith by the Board of Trustees.
(e) Non-income producing security.
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
---------------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: May 18, 2006
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: May 18, 2006
By: /s/ Phillip G. Goff
---------------------------------
Name: Phillip G. Goff
Title: Principal Financial Officer
Date: May 18, 2006