BlackRock Municipal Income Trust II

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: John M. Perlowski, 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: 08/31/2013

Date of reporting period: 11/30/2012

Item 1 – Schedule of Investments

 

 

Schedule of Investments (November 30, 2012 (Unaudited)

  

 

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

    

Par

(000)

      Value  

Municipal Bonds

                  

Alabama — 0.4%

      

County of Jefferson Alabama, RB, Series A, 5.25%, 1/01/19

    $ 1,620       $ 1,621,102   

Arizona — 1.7%

      

Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/32

      5,635         6,770,960   

California — 9.0%

      

ABAG Finance Authority for Nonprofit Corps., Refunding RB, Odd Fellows Home of California,
Series A, 5.00%, 4/01/42

      1,000         1,119,900   

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

      2,480         2,953,854   

California County Tobacco Securitization Agency, RB, CAB, Stanislaus, Sub-Series C, 10.37%, 6/01/55 (a)

      9,710         132,153   

California Health Facilities Financing Authority, RB:

      

Stanford Hospital Clinics, Series A, 5.00%, 8/15/51

      1,290         1,480,081   

Sutter Health, Series B, 6.00%, 8/15/42

      3,500         4,285,120   

California HFA, RB, Series K, AMT, Home Mortgage, 5.50%, 2/01/42

      1,640         1,697,826   

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

      1,280         1,577,779   

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

      860         988,063   

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

      3,120         3,133,634   

San Marcos Unified School District, CAB, SAN, Election of 2010, Series B (a):

      

4.59%, 8/01/33

      3,000         1,174,230   

4.78%, 8/01/43

      2,500         587,150   

State of California, GO, Various Purpose:

      

6.00%, 3/01/33

      1,760         2,261,829   

6.50%, 4/01/33

        10,670         13,704,228   
                  35,095,847   

Colorado — 1.6%

      

Colorado Health Facilities Authority, Refunding RB:

      

Catholic Healthcare, Series A, 5.50%, 7/01/34

      2,330         2,713,541   

Evangelical Lutheran Good Samaritan Society Project, 5.00%, 12/01/42

      1,920         2,099,136   
    

Par

(000)

      Value  

Municipal Bonds

                  

Colorado (concluded)

      

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

    $ 1,375       $ 1,464,719   
                6,277,396   

Connecticut — 0.5%

      

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

      1,505         1,751,278   

Delaware — 1.6%

      

County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40

      1,240         1,414,319   

Delaware State EDA, RB, Exempt Facilities, Indian River Power, 5.38%, 10/01/45

      4,430         4,823,606   
                6,237,925   

District of Columbia — 4.7%

      

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

      

6.50%, 5/15/33

      3,250         3,883,945   

6.75%, 5/15/40

        11,500         11,787,385   

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

      

5.00%, 10/01/39

      550         618,233   

5.25%, 10/01/44

      2,000         2,266,940   
                  18,556,503   

Florida — 4.8%

      

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

      1,000         1,001,020   

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

      2,855         3,129,166   

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

      1,255         1,464,095   

Jacksonville Florida Port Authority, Refunding RB, AMT, 5.00%, 11/01/38

      1,665         1,852,079   

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

      3,030         3,093,812   

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

      3,365         3,688,780   

Mid-Bay Bridge Authority, RB,
Series A, 7.25%, 10/01/40

      2,500         3,278,300   
 

 

                 
      BLACKROCK MUNICIPAL INCOME TRUST II       NOVEMBER 30, 2012    1      

 

 

Schedule of Investments (continued)

  

 

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

    

Par

(000)

      Value  

Municipal Bonds

                  

Florida (concluded)

      

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

    $ 1,895       $ 1,421,743   
                18,928,995   

Georgia — 0.3%

      

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

      915         1,034,215   

Hawaii — 0.5%

      

State of Hawaii, RB, Series A, 5.25%, 7/01/30

      1,480         1,773,188   

Illinois — 14.0%

      

Chicago Illinois Board of Education, GO, Series A, 5.50%, 12/01/39

      2,300         2,758,735   

Chicago Transit Authority, RB, Sales Tax Receipts Revenue, 5.25%, 12/01/40

      1,150         1,351,825   

City of Chicago Illinois, ARB, O’Hare International Airport, General, Third Lien:

      

5.75%, 1/01/39

      5,000         6,032,450   

6.50%, 1/01/41

      6,430         8,423,236   

City of Chicago Illinois, GO, Project, Series A, 5.00%, 1/01/33

      4,940         5,716,272   

City of Chicago Illinois, Refunding RB, Sales Tax Revenue, Series A, 5.25%, 1/01/38

      895         1,064,280   

Illinois Finance Authority, RB, Navistar International, Recovery Zone, 6.50%, 10/15/40

      990         1,038,965   

Illinois Finance Authority, Refunding RB:

      

Ascension Health, Series A, 5.00%, 11/15/37

      1,060         1,218,258   

Ascension Health, Series A, 5.00%, 11/15/42

      1,925         2,199,447   

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

      1,750         2,010,890   

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

      455         460,410   

Illinois Sports Facilities Authority, RB, State Tax Supported (AMBAC), 5.50%, 6/15/30

        10,500           11,591,685   

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project:

      

Series B (AGM), 5.00%, 6/15/50

      3,430         3,822,392   

Series B-2, 5.00%, 6/15/50

      2,725         3,035,868   

Railsplitter Tobacco Settlement Authority, RB:

      

5.50%, 6/01/23

      1,470         1,794,914   

6.00%, 6/01/28

      1,255         1,544,190   
    

Par

(000)

      Value  

Municipal Bonds

                  

Illinois (concluded)

      

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

    $ 685       $ 800,724   
                54,864,541   

Indiana — 3.1%

      

Indiana Finance Authority, RB:

      

First Lien, CWA Authority, Series A, 5.25%, 10/01/38

      1,720         2,038,905   

Sisters of St. Francis Health, 5.25%, 11/01/39

      915         1,028,158   

Indiana Finance Authority, Refunding RB:

      

Ascension Health Senior Credit, Series B-5, 5.00%, 11/15/36

      1,500         1,668,840   

Community Health Network, Series A, 5.00%, 5/01/42

      2,050         2,326,074   

Indiana Health Facility Financing Authority, Refunding RB, Methodist Hospital, Inc., 5.38%, 9/15/22

      3,675         3,679,814   

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

      1,200         1,469,124   
                12,210,915   

Iowa — 0.6%

      

Iowa Student Loan Liquidity Corp., Refunding RB, Series A-1, AMT, 5.15%, 12/01/22

      2,140         2,467,827   

Kansas — 0.5%

      

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

      1,755         1,955,000   

Kentucky — 0.3%

      

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

      1,105         1,336,553   

Louisiana — 3.1%

      

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp., Series A-1, 6.50%, 11/01/35

      3,650         4,307,438   

Parish of St. John the Baptist Louisiana, RB, Marathon Oil Corp., Series A, 5.13%, 6/01/37

      7,290         7,855,121   
                  12,162,559   

Maine — 0.5%

      

Maine State Turnpike Authority, RB, Series A, 5.00%, 7/01/42

        1,615         1,916,343   
 

 

                 
      BLACKROCK MUNICIPAL INCOME TRUST II       NOVEMBER 30, 2012    2      

 

 

Schedule of Investments (continued)

  

 

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

     Par
(000)		      Value  

Municipal Bonds

                  

Maryland — 1.1%

      

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

    $ 475       $ 542,293   

Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25

      1,000         1,102,290   

Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community, 6.25%, 1/01/41

        2,400         2,805,960   
                4,450,543   

Massachusetts — 0.3%

      

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

      955         1,064,729   

Michigan — 2.0%

      

City of Detroit Michigan, RB, Water Supply System, Series A, Senior Lien, 5.25%, 7/01/41

      3,355         3,644,402   

Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital, 5.50%, 5/15/36

      1,500         1,713,390   

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

      2,305         2,465,175   
                7,822,967   

Minnesota — 0.6%

      

Tobacco Securitization Authority Minnesota, Refunding RB, Tobacco Settlement Revenue, Series B, 5.25%, 3/01/31

      2,065         2,325,211   

Missouri — 1.9%

      

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

      6,000         6,032,760   

Missouri State Health & Educational Facilities Authority, RB, Senior Living Facilities, Lutheran Senior Home, 5.50%, 2/01/42

      1,135         1,237,184   
                7,269,944   

Multi-State — 3.7%

      

Centerline Equity Issuer Trust (b)(c):

      

5.75%, 5/15/15

      1,000         1,093,010   

6.00%, 5/15/15

      5,000         5,491,400   

6.00%, 5/15/19

      3,500         4,183,025   

6.30%, 5/15/19

      3,000         3,632,430   
                  14,399,865   
     Par
(000)		      Value  

Municipal Bonds

                  

Nebraska — 1.5%

      

Central Plains Energy Project Nebraska, RB, Gas Project No. 3:

      

5.00%, 9/01/42

    $     1,570       $ 1,745,385   

5.25%, 9/01/37

      895         1,017,158   

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

      1,245         1,425,687   

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

      1,635         1,841,484   
                6,029,714   

Nevada — 0.7%

      

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

      2,465         2,712,535   

New Jersey — 4.0%

      

New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT, 6.25%, 9/15/29

      2,130         2,191,685   

New Jersey EDA, Refunding RB:

      

Cigarette Tax, 5.00%, 6/15/24

      455         535,535   

Cigarette Tax, 5.00%, 6/15/25

      610         714,792   

Special Assessment Bonds, Kapkowski Road Landfill Project, 6.50%, 4/01/28

      7,475         9,099,018   

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36

      2,690         3,198,814   
                  15,739,844   

New York — 4.1%

      

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

      985         147,770   

Metropolitan Transportation Authority, RB, Series E, 5.00%, 11/15/42

      585         682,876   

Metropolitan Transportation Authority, Refunding RB, Transportation, Series D, 5.25%, 11/15/40

      1,325         1,538,722   

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

      6,700         7,072,453   

New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49

      1,335         1,571,442   
 

 

                 
      BLACKROCK MUNICIPAL INCOME TRUST II       NOVEMBER 30, 2012    3      

 

 

Schedule of Investments (continued)

  

 

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

    

Par

(000)

      Value  

Municipal Bonds

                  

New York (concluded)

      

New York State Thruway Authority, Refunding RB, General, Series I, 5.00%, 1/01/42

    $     1,500       $ 1,761,780   

Port Authority of New York & New Jersey, RB, JFK International Air Terminal:

      

6.00%, 12/01/36

      1,410         1,682,412   

6.00%, 12/01/42

      1,375         1,640,650   
                  16,098,105   

North Carolina — 3.1%

      

Gaston County Industrial Facilities & Pollution Control Financing Authority North Carolina, RB, Exempt Facilities National Gypsum Co. Project, AMT, 5.75%, 8/01/35

      6,500         6,093,295   

North Carolina Capital Facilities Finance Agency, Refunding RB, Duke Energy Carolinas Project, Series B, 4.63%, 11/01/40

      3,930         4,330,506   

North Carolina Medical Care Commission, RB, Duke University Health System, Series A, 5.00%, 6/01/42

      1,525         1,701,107   
                12,124,908   

Ohio — 2.3%

      

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

      3,405         3,855,175   

County of Hamilton Ohio, RB, Christ Hospital Project, 5.00%, 6/01/42

      1,640         1,802,606   

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

      3,025         3,323,900   
                8,981,681   

Oregon — 0.1%

      

City of Tigard Washington County Oregon, Refunding RB, Water System, 5.00%, 8/01/37

      275         328,501   

Pennsylvania — 1.6%

      

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

      1,495         1,009,110   

Allentown Neighborhood Improvement Zone Development Authority, RB, Series A, 5.00%, 5/01/42

      2,500         2,708,825   

Pennsylvania Economic Development Financing Authority, RB, Aqua Pennsylvania, Inc. Project, 5.00%, 11/15/40

      2,065         2,356,000   
                6,073,935   
    

Par

(000)

      Value  

Municipal Bonds

                  

Puerto Rico — 5.3%

      

Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.50%, 8/01/44

    $ 6,100       $ 7,183,726   

Puerto Rico Sales Tax Financing Corp., RB, CAB, Series A (a):

      

5.30%, 8/01/33

      13,600         4,611,352   

5.40%, 8/01/34

      5,500         1,733,160   

4.47%, 8/01/35

      14,055         4,136,246   

5.52%, 8/01/36

      11,875         3,273,819   
                  20,938,303   

South Carolina — 1.8%

      

South Carolina Jobs-EDA, Refunding RB, Palmetto Health Alliance, Series A, 6.25%, 8/01/31

      2,640         2,742,089   

South Carolina State Ports Authority, RB, 5.25%, 7/01/40

      3,595         4,147,983   
                6,890,072   

South Dakota — 0.3%

      

South Dakota Health and Educational Facilities Authority, RB, Series E, 5.00%, 11/01/42

      1,165         1,321,856   

Tennessee — 4.3%

      

Knox County Health Educational & Housing Facilities Board Tennessee, Refunding RB, CAB, Series A (AGM), 5.74%,
1/01/21 (a)

        20,405         12,913,917   

Metropolitan Gov’t Nashville & Davidson County Health & Educational Facilities Board, Refunding RB, Vanderbilt University, Series D, 3.25%, 10/01/37

      3,480         3,500,323   

Rutherford County Health & Educational Facilities Board, RB, Ascension Health, Series C, 5.00%, 11/15/47

      230         265,898   
                16,680,138   

Texas — 19.0%

      

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

      2,400         335,544   

Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 6.25%, 1/01/46

      2,350         2,801,623   

City of Austin Texas, Refunding RB, Water & Wastewater System Revenue, 5.00%, 11/15/37

      685         824,411   

City of Dallas Texas, Refunding RB, 5.00%, 10/01/35

      1,650         1,946,984   

City of Houston Texas, Refunding RB, Series A:

      

Combined, First Lien (AGC), 6.00%, 11/15/35

      9,145         11,401,071   

Senior Lien, 5.50%, 7/01/39

      1,675         1,980,453   
 

 

                 
      BLACKROCK MUNICIPAL INCOME TRUST II       NOVEMBER 30, 2012    4      

 

 

Schedule of Investments (continued)

  

 

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

     Par
(000)		      Value  

Municipal Bonds

                  

Texas (concluded)

      

Clifton Higher Education Finance Corp., RB, Idea Public Schools, 5.00%, 8/15/32

    $ 640       $ 702,323   

Fort Bend County Industrial Development Corp., RB, NRG Energy Inc. Project:

      

Series A, 4.75%, 5/01/38

      1,900         1,999,769   

Series B, 4.75%, 11/01/42

      1,605         1,682,602   

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

      5,000         5,018,400   

Harris County-Houston Sports Authority, Refunding RB, Third Lien, Series A-3 (NPFGC), 5.87%, 11/15/36 (a)

        25,375         6,352,124   

Lower Colorado River Authority, Refunding RB, Series A (NPFGC), 5.00%, 5/15/31 (g)

      5         5,109   

Midland County Fresh Water Supply District Number 1, RB, Midland Projects, Series A:

      

5.00%, 9/15/40

      890         1,055,798   

CAB, 4.49%, 9/15/37 (a)

      17,105         5,693,912   

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

      6,790         7,559,307   

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

      3,600         4,313,052   

Tarrant County Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45

      4,410         5,331,117   

Texas Municipal Gas Acquisition & Supply Corp. III, RB, 5.00%, 12/15/29 (h)

      2,055         2,295,805   

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:

      

LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40

      3,000         3,769,230   

NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39

      3,000         3,700,350   

Texas Transportation Commission, Refunding RB, First Tier,
Series A, 5.00%, 8/15/41

      1,310         1,484,335   

University of Texas System, Refunding RB, Financing System Bonds, Series B, 5.00%, 8/15/43

      3,350         4,077,519   
                  74,330,838   
     Par
(000)		      Value  

Municipal Bonds

                  

Utah — 1.2%

      

County of Utah, RB, IHC Health Services, Inc., 5.00%, 5/15/43

    $     2,190       $ 2,530,961   

Utah State Charter School Finance Authority, RB, Ogden Preparatory Academy (h):

      

3.25%, 10/15/36

      1,085         1,058,711   

3.25%, 10/15/42

      1,310         1,254,089   
                4,843,761   

Virginia — 1.8%

      

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

      1,240         1,241,835   

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings Opco LLC Project, AMT:

      

5.25%, 1/01/32

      1,755         1,951,823   

6.00%, 1/01/37

      2,000         2,341,900   

5.50%, 1/01/42

      1,255         1,414,272   
                6,949,830   

Washington — 1.8%

      

Bellingham Washington, Water & Sewer Revenue, 5.00%, 8/01/36

      5,050         5,963,646   

Washington Health Care Facilities Authority, Refunding RB, Providence Health & Services, Series A, 5.00%, 10/01/42

      1,100         1,265,913   
                7,229,559   

Wisconsin — 1.8%

      

Wisconsin Health & Educational Facilities Authority, RB:

      

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

      1,790         2,119,306   

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

      910         1,068,249   

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

      3,930         3,978,143   
                7,165,698   

Wyoming — 1.5%

      

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

      3,355         3,885,526   

Wyoming Municipal Power Agency, RB, Series A:

      

5.50%, 1/01/33

      800         925,944   

5.50%, 1/01/38

      750         868,073   
                5,679,543   

Total Municipal Bonds – 113.0%

               442,413,227   
 

 

                 
      BLACKROCK MUNICIPAL INCOME TRUST II       NOVEMBER 30, 2012    5      

 

 

Schedule of Investments (continued)

  

 

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

     Par
(000)		      Value  
Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (i)                  

Alabama — 0.7%

      

Alabama Special Care Facilities Financing Authority-Birmingham, Refunding RB, Ascension Health Senior Credit, Series C-2, 5.00%, 11/15/36

    $ 2,519       $ 2,813,821   

Arizona — 0.8%

      

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

      2,630         3,038,377   

California — 8.6%

      

California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/39 (j)

      2,850         3,402,786   

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

      6,499         7,502,921   

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

      2,530         2,919,291   

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

      1,840         2,266,726   

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

      10,335         12,199,847   

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

      5,099         5,292,392   
                33,583,963   

Colorado — 1.9%

      

Colorado Health Facilities Authority, RB, Catholic Health:

      

Series C-3 (FSA), 5.10%, 10/01/41

      4,230         4,604,567   

Series C-7 (AGM), 5.00%, 9/01/36

      2,710         2,952,274   
                7,556,841   

Connecticut — 3.0%

      

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

      

Series T-1, 4.70%, 7/01/29

      5,170         5,885,993   

Series X-3, 4.85%, 7/01/37

      5,130         5,881,750   
                11,767,743   

Florida — 1.5%

      

County of Miami-Dade Florida, RB, Water & Sewer System Revenue (AGM), 5.00%, 10/01/39

      5,001         5,727,326   

Georgia — 1.4%

      

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

      4,638         5,412,864   
     Par
(000)		      Value  
Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (i)                  

Illinois — 0.9%

      

City of Chicago Illinois, Refunding RB,
5.00%, 11/01/42

    $ 3,119       $ 3,662,018   

Maryland — 1.3%

      

Maryland Health & Higher Educational Facilities Authority, Refunding RB, Ascension Health, Series B,
5.00%, 11/15/51

      4,559         5,278,665   

Massachusetts — 2.4%

      

Massachusetts School Building Authority, Sales Tax RB, Senior, Series B,
5.00%, 10/15/41

      4,950         5,920,645   

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

      3,150         3,578,684   
                9,499,329   

Michigan — 0.9%

      

Detroit Water and Sewerage Department, Refunding RB, Senior Lien, Series A:

      

5.00%, 7/01/32

      1,700         1,861,126   

5.25%, 7/01/39

      1,462         1,628,317   
                3,489,443   

New Hampshire — 0.7%

      

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

      2,219         2,706,942   

New York — 13.1%

      

Hudson New York Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47

      1,750         2,125,577   

New York City Municipal Water Finance Authority, Refunding RB:

      

Second General Resolution, Series HH, 5.00%, 6/15/31 (j)

      9,149         11,141,635   

Series FF-2, 5.50%, 6/15/40

      1,710         2,107,819   

New York City Transitional Finance Authority, RB, 5.00%, 2/01/42

      2,679         3,179,387   

New York Liberty Development Corp., RB, Liberty Revenue Bonds, 1 World Trade Center Port Authority Construction,
5.25%, 12/15/43

      11,670         13,867,628   

New York Liberty Development Corp., Refunding RB, Liberty Revenue Bonds, 4 World Trade Center Project,
5.75%, 11/15/51

      7,040         8,612,806   

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

      9,284         10,113,906   
                51,148,758   
 

 

                 
      BLACKROCK MUNICIPAL INCOME TRUST II       NOVEMBER 30, 2012    6      

 

 

Schedule of Investments (continued)

  

 

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

    

Par

(000)

      Value  
Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (i)                  

Texas — 1.1%

      

Harris County Texas Metropolitan Transit Authority, Refunding RB, Sales & Use Tax Bonds, Series A,
5.00%, 11/01/41

    $ 3,720       $ 4,390,865   

Utah — 1.1%

      

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

      3,959         4,418,911   

Virginia — 1.8%

      

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

      5,909         6,945,854   

Washington — 3.4%

      

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

      3,029         3,489,768   

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

      8,113         9,664,884   
                13,154,652   
Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts – 44.6%          174,596,372   

Total Long-Term Investments

(Cost – $553,020,763) – 157.6%

  

  

      617,009,599   
     
     

Short-Term Securities

                  

Virginia — 0.6%

      

Roanoke Economic Development Authority, RB, VRDN, Carilion Health System,
0.20%, 12/03/12 (k)

      2,600         2,600,000   

Mississippi — 3.1%

      

Mississippi Business Finance Corp., RB, VRDN,
0.17%, 12/03/12 (k)

      12,000         12,000,000   
      Shares          

Money Market Funds — 0.00%

      

FFI Institutional Tax-Exempt Fund,
0.01%, (l)(m)

      36,092         36,092   

Total Short-Term Securities

(Cost – $14,636,092) – 3.7%

               14,636,092   
            Value  

Total Investments

(Cost–$567,656,855*) – 161.3%

       $ 631,645,691   

Other Assets Less Liabilities – 1.0%

         4,002,812   

Liability for TOB Trust Certificates, Including Interest Expense and Fees
Payable – (23.7)%

         (92,673,913)   

VMTP Shares, at Liquidation Value – (38.6)%

         (151,300,000)   

Net Assets Applicable to Common Shares– 100.0%

    $ 391,674,590   

 

 

*      As of November 30, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

         

        Tax cost

    $ 475,210,838   
  

 

 

  

        Gross unrealized appreciation

    $ 68,558,801   

        Gross unrealized depreciation

      (4,749,803)   
  

 

 

  

        Net unrealized appreciation

    $ 63,808,998   
  

 

 

  

 

 

(a) Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(b) 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.
(c) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(d) Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(e) Non-income producing security.
(f) Variable rate security. Rate shown is as of report date.
(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) When-issued security. Unsettled when-issued transactions were as follows:

 

        Counterparty

 

   

Value

 

     

Unrealized

Appreciation

 

  

        JPMorgan Chase & Co.

    $ 2,295,805       $ 58,239   

        Robert W. Baird & Co.

    $ 2,312,800       $ 583   
(i) Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction.
(j) All or a portion of security is subject to a recourse agreement which may require the Trust to pay the Liquidity Provider in the event there is a shortfall between the TOB Trust Certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements is $9,477,746.
(k) Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand.
 

 

                 
      BLACKROCK MUNICIPAL INCOME TRUST II       NOVEMBER 30, 2012    7      

 

 

Schedule of Investments (concluded)

  

 

BlackRock Municipal Income Trust II (BLE)

 

(l) Investments in issuers considered to be an affiliate of the Trust during the period ended November 30, 2012, 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,
2012

     

Net

Activity

    

Shares

Held at
November 30,
2012

      Income  

FFI Institutional Tax-Exempt Fund

      15,208,474         (15,172,382 )      36,092       $ 279   

 

(m) Represents the current yield as of report date.

 

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.

AGM

    Assured Guaranty Municipal Corp.

AMBAC

    American Municipal Bond Assurance Corp.

AMT

    Alternative Minimum Tax (subject to)

ARB

    Airport Revenue Bonds

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

HFA

    Housing Finance Agency

NPFGC

    National Public Finance Guarantee Corp.

RB

    Revenue Bonds

SAN

    State Aid Notes

VRDN

    Variable Rate Demand Notes

 

—  

Fair Value Measurements - Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

—  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access

 

—  

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 hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks 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 annual report.

The following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of November 30, 2012:

     Level 1     Level 2     Level 3     Total  

Assets:

        

Investments:

        

Long-Term Investments1

     —      $ 617,009,599        —      $ 617,009,599   

Short-Term Securities

   $ 36,092        14,600,000        —        14,636,092   

Total

   $ 36,092      $ 631,609,599        —      $ 631,645,691   
1 

See above Schedule of Investments for values in each state or political sub-division.

Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of November 30, 2012, such liabilities are categorized within the disclosure hierarchy as follows:

 

     Level 1     Level 2     Level 3     Total  

Liabilities:

        

TOB trust certificates

     —      $ (92,625,855 )      —      $ (92,625,855 ) 

VMTP
Shares

     —        (151,300,000 )      —        (151,300,000 ) 

Total

     —      $ (243,925,855 )      —      $ (243,925,855 ) 

There were no transfers between levels during the period ended November 30, 2012.

 

 

                 
      BLACKROCK MUNICIPAL INCOME TRUST II       NOVEMBER 30, 2012   

8      

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 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 Municipal Income Trust II

 

By:    

  

/s/ John M. Perlowski

  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock Municipal Income Trust II

Date: January 23, 2013

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 Municipal Income Trust II

Date: January 23, 2013

 

By:      

/s/ Neal J. Andrews

  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock Municipal Income Trust II

Date: January 23, 2013