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 811-10499

 

Name of Fund: BlackRock California Municipal 2018 Term Trust (BJZ)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock California Municipal 2018 Term Trust, 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: 12/31/2011

 

Date of reporting period: 09/30/2011

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments September 30, 2011 (Unaudited)

BlackRock California Municipal 2018 Term Trust (BJZ)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California — 149.4%

 

 

 

 

 

 

 

Corporate — 12.4%

 

 

 

 

 

 

 

California Pollution Control Financing
Authority, RB, Mandatory Put Bonds,
AMT (a):

 

 

 

 

 

 

 

Republic Services Inc. Project,
Series B, 5.25%, 6/01/23

 

$

2,020

 

$

2,183,660

 

Waste Management Inc.
Project, Series A, 5.13%,
7/01/31

 

 

4,000

 

 

4,350,440

 

California Pollution Control Financing
Authority, Refunding RB:

 

 

 

 

 

 

 

Mandatory Put Bonds,
Republic Services Inc.
Project, Series C, AMT,
5.25%, 6/01/23

 

 

2,030

 

 

2,194,471

 

San Diego Gas & Electric,
Series A, 5.90%, 6/01/14

 

 

3,100

 

 

3,464,963

 

 

 

 

 

 

 

12,193,534

 

County/City/Special District/School District — 44.2%

 

 

 

 

 

 

 

City of Vista California, COP, Refunding,
Community Projects (NPFGC):

 

 

 

 

 

 

 

5.00%, 5/01/19

 

 

1,000

 

 

1,074,960

 

4.75%, 5/01/21

 

 

1,115

 

 

1,162,521

 

Clovis Unified School District California,
GO, CAB, Election of 2004, Series A
(NPFGC), 5.13%, 8/01/21 (b)(c)

 

 

7,500

 

 

5,941,650

 

County of San Bernardino California,
Special Tax Bonds, Community
Facilities District No. 2002-1:

 

 

 

 

 

 

 

5.35%, 9/01/17

 

 

105

 

 

108,171

 

5.50%, 9/01/18

 

 

245

 

 

252,012

 

Fontana Public Finance Authority
California, Tax Allocation Bonds,
Refunding, North Fontana
Redevelopment Project, Series A
(AGM), 5.25%, 9/01/18

 

 

3,395

 

 

3,438,626

 

Irvine Unified School District California,
Special Tax Bonds, Community
Facilities District No. 86-1 (AGM),
5.25%, 9/01/18

 

 

5,000

 

 

5,721,650

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

County/City/Special District/School District
(concluded)

 

 

 

 

 

 

 

Lathrop Financing Authority, RB, Water
Supply Project:

 

 

 

 

 

 

 

5.80%, 6/01/21

 

$

995

 

$

1,006,244

 

5.85%, 6/01/22

 

 

1,040

 

 

1,050,254

 

5.90%, 6/01/23

 

 

1,000

 

 

1,008,270

 

Los Angeles Community College District
California, GO, Election of 2001,
Series E-1, 4.00%, 8/01/18

 

 

200

 

 

222,246

 

Los Angeles Unified School District
California, GO, Series I, 5.00%,
7/01/20

 

 

2,500

 

 

2,928,300

 

Los Banos Unified School District, GO,
Election of 2008 (AGC), 5.00%,
8/01/18

 

 

475

 

 

557,142

 

Palm Springs Unified School District,
GO, Refunding, 5.00%, 8/01/18

 

 

2,745

 

 

3,282,800

 

Riverside Unified School District
California, GO, Series A (NPFGC),
5.25%, 2/01/23 (d)

 

 

5,000

 

 

5,114,950

 

San Manuel Entertainment Authority,
Series 04-C, 4.50%, 12/01/16 (e)

 

 

4,000

 

 

4,037,520

 

San Marcos Unified School District, GO,
CAB (c):

 

 

 

 

 

 

 

2.63%, 8/01/17

 

 

385

 

 

327,516

 

2.87%, 8/01/18

 

 

500

 

 

404,930

 

Santa Clara Unified School District, GO,
Election of 2004, Series A, 5.00%,
7/01/18

 

 

2,190

 

 

2,651,499

 

Stockton East Water District, COP,
Refunding, Series B (NPFGC), 5.93%,
4/01/19 (c)

 

 

4,590

 

 

2,980,700

 

 

 

 

 

 

 

43,271,961

 

 

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.

AMT

Alternative Minimum Tax (subject to)

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

GO

General Obligation Bonds

NPFGC

National Public Finance Guarantee Corp.

RB

Revenue Bonds

 

 

 

 

 

 

 

 

 

BLACKROCK CALIFORNIA MUNICIPAL 2018 TERM TRUST

SEPTEMBER 30, 2011

1


 

 

 

 

Schedule of Investments (continued)

BlackRock California Municipal 2018 Term Trust (BJZ)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

Education — 10.0%

 

 

 

 

 

 

 

California Infrastructure & Economic
Development Bank, RB, J. David
Gladstone Institute Project, 5.50%,
10/01/20

 

$

1,985

 

$

2,008,264

 

California State Public Works Board,
Refunding RB, Trustees of the
California State University, Series A,
5.00%, 10/01/17

 

 

2,415

 

 

2,419,782

 

University of California, RB, General,
Series AB, 5.00%, 5/15/19

 

 

2,500

 

 

2,986,150

 

University of California, Refunding RB,
Series S, 5.00%, 5/15/18

 

 

2,000

 

 

2,410,720

 

 

 

 

 

 

 

9,824,916

 

Health — 16.7%

 

 

 

 

 

 

 

ABAG Finance Authority for Nonprofit
Corps, RB, San Diego Hospital
Association, Series C, 5.38%,
3/01/21

 

 

2,100

 

 

2,181,375

 

California Health Facilities Financing
Authority, RB, Health Facility,
Adventist Health System, Series A:

 

 

 

 

 

 

 

5.00%, 3/01/18

 

 

1,075

 

 

1,103,799

 

5.00%, 3/01/19

 

 

1,000

 

 

1,022,300

 

5.00%, 3/01/20

 

 

2,060

 

 

2,102,745

 

5.00%, 3/01/24

 

 

1,355

 

 

1,367,751

 

California Health Facilities
Financing Authority, RB, Sutter
Health, Series B, 5.00%,
8/15/19

 

 

1,430

 

 

1,637,750

 

California Statewide Communities
Development Authority, RB, Kaiser
Permanente, Series A, 5.00%,
4/01/19

 

 

2,000

 

 

2,332,680

 

California Statewide Communities
Development Authority, Refunding RB,
Daughters of Charity Health, Series A,
5.25%, 7/01/24

 

 

5,000

 

 

4,614,050

 

 

 

 

 

 

 

16,362,450

 

Housing — 3.2%

 

 

 

 

 

 

 

California Housing Finance Agency, RB,
Series A (Fannie Mae):

 

 

 

 

 

 

 

3.20%, 8/01/18

 

 

1,000

 

 

1,032,960

 

3.50%, 2/01/19

 

 

1,980

 

 

2,057,418

 

 

 

 

 

 

 

3,090,378

 

State — 10.5%

 

 

 

 

 

 

 

California State Public Works Board,
Refunding RB, California Community
Colleges, Series A, 5.00%, 12/01/17

 

 

2,020

 

 

2,023,939

 

State of California, GO:

 

 

 

 

 

 

 

5.00%, 11/01/11 (d)

 

 

3,240

 

 

3,253,478

 

5.00%, 11/01/20

 

 

260

 

 

260,783

 

State of California, GO, Refunding:

 

 

 

 

 

 

 

5.00%, 9/01/18

 

 

3,400

 

 

3,941,620

 

Series A, 5.00%, 7/01/18

 

 

720

 

 

847,865

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

State (concluded)

 

 

 

 

 

 

 

State of California, GO, Refunding
(concluded):

 

 

 

 

 

 

 

Veterans, Series BZ, AMT (NPFGC),
5.35%, 12/01/21

 

$

10

 

$

10,011

 

 

 

 

 

 

 

10,337,696

 

Transportation — 22.6%

 

 

 

 

 

 

 

City of Long Beach California, RB, Series
A, 5.00%, 5/15/18

 

 

500

 

 

595,775

 

Foothill Eastern Transportation Corridor
Agency California, Refunding RB, CAB,
5.88%, 1/15/21 (c)

 

 

20,000

 

 

11,569,000

 

Los Angeles Department of Airports,
Refunding RB, Senior, Los Angeles
International Airport, Series A, 4.50%,
5/15/19

 

 

3,420

 

 

3,932,042

 

Port of Oakland, Refunding RB, Series
O, AMT:

 

 

 

 

 

 

 

5.00%, 5/01/18

 

 

2,500

 

 

2,762,275

 

5.00%, 5/01/19

 

 

3,000

 

 

3,286,980

 

 

 

 

 

 

 

22,146,072

 

Utilities — 29.8%

 

 

 

 

 

 

 

California State Department of Water
Resources, RB:

 

 

 

 

 

 

 

Series A, 5.13%, 5/01/19 (d)

 

 

6,500

 

 

6,750,770

 

Series M, 4.00%, 5/01/18

 

 

1,000

 

 

1,123,290

 

Series N, 5.00%, 5/01/19

 

 

3,500

 

 

4,170,425

 

California State Department of Water
Resources, Refunding RB:

 

 

 

 

 

 

 

Series H, Power Supply,
5.00%, 5/01/22

 

 

3,500

 

 

3,972,955

 

Series L, 5.00%, 5/01/19

 

 

2,000

 

 

2,383,100

 

Cucamonga Valley Water District,
Refunding RB, Series A (AGM):

 

 

 

 

 

 

 

4.00%, 9/01/18

 

 

325

 

 

366,424

 

3.00%, 9/01/19

 

 

375

 

 

392,794

 

4.00%, 9/01/19

 

 

325

 

 

363,789

 

Los Angeles County Sanitation Districts
Financing Authority, 3.00%,
10/01/18

 

 

3,000

 

 

3,255,000

 

Los Angeles Department of Water &
Power, RB:

 

 

 

 

 

 

 

Power System, Series A,
5.00%, 7/01/19

 

 

2,500

 

 

2,990,450

 

Series B, 5.00%, 7/01/18

 

 

600

 

 

720,918

 

Metropolitan Water District of Southern
California, Refunding RB, Series B,
4.00%, 7/01/18

 

 

1,250

 

 

1,435,662

 

Sacramento Municipal Utility District,
Refunding RB, Series X, 5.00%,
8/15/18 (f)

 

 

400

 

 

469,944

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BLACKROCK CALIFORNIA MUNICIPAL 2018 TERM TRUST

SEPTEMBER 30, 2011

2


 

 

 

 

Schedule of Investments (continued)

BlackRock California Municipal 2018 Term Trust (BJZ)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

Utilities (concluded)

 

 

 

 

 

 

 

Southern California Public Power
Authority, RB, Canyon Power, Series A,
4.00%, 7/01/18

 

$

685

 

$

765,837

 

 

 

 

 

 

 

29,161,358

 

Total Municipal Bonds in California

 

 

 

 

 

146,388,365

 

 

 

 

 

 

 

 

 

Puerto Rico — 3.4%

 

 

 

 

 

 

 

State — 2.2%

 

 

 

 

 

 

 

Puerto Rico Public Buildings Authority,
Refunding RB Government Facilities:

 

 

 

 

 

 

 

Series C, 5.75%, 7/01/19 (b)

 

 

5

 

 

6,482

 

Series C, 5.75%, 7/01/19

 

 

1,000

 

 

1,094,320

 

Series M, 6.00%, 7/01/20

 

 

1,000

 

 

1,110,130

 

 

 

 

 

 

 

2,210,932

 

Transportation — 1.2%

 

 

 

 

 

 

 

Puerto Rico Highway & Transportation
Authority, Refunding RB, Series Z
(AGM), 6.00%, 7/01/18

 

 

1,000

 

 

1,133,700

 

Total Municipal Bonds in Puerto Rico

 

 

 

 

 

3,344,632

 

 

 

 

 

 

 

 

 

US Virgin Islands — 3.0%

 

 

 

 

 

 

 

State — 3.0%

 

 

 

 

 

 

 

Virgin Islands Public Finance Authority,
RB, Senior Lien, Matching Fund Loan
Note, Series A:

 

 

 

 

 

 

 

5.25%, 10/01/17

 

 

360

 

 

381,096

 

5.25%, 10/01/19

 

 

455

 

 

472,354

 

5.25%, 10/01/21

 

 

460

 

 

473,648

 

5.25%, 10/01/22

 

 

315

 

 

323,284

 

5.25%, 10/01/23

 

 

960

 

 

980,554

 

5.25%, 10/01/24

 

 

300

 

 

305,115

 

 

 

 

 

 

 

2,936,051

 

Total Municipal Bonds in the US Virgin Islands

 

 

 

 

 

2,936,051

 

Total Long-Term Investments
(Cost – $147,560,124) – 155.8%

 

 

 

 

 

152,669,048

 
 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

BIF California Municipal Money Fund,
0.01% (g)(h)

 

 

326,273

 

 

326,273

 

Total Short-Term Securities
(Cost – $326,273) – 0.3%

 

 

 

 

 

326,273

 

Total Investments
(Cost - $147,886,397*) – 156.1%

 

 

 

 

$

152,995,321

 

Other Assets Less Liabilities – 0.6%

 

 

 

 

 

542,122

 

Preferred Shares, at Redemption Value – (56.7)%

 

 

 

 

 

(55,527,364

)

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

98,010,079

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of September 30, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

147,883,209

 

Gross unrealized appreciation

 

$

5,769,646

 

Gross unrealized depreciation

 

 

(657,534

)

Net unrealized appreciation

 

$

5,112,112

 

 

 

(a)

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

 

 

(b)

Security is collateralized by Municipal or US Treasury obligations.

 

 

(c)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(d)

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.

 

 

(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)

When-issued security. Unsettled when-issued transactions were as follows:


 

 

 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Depreciation

 

 

Pershing LLC

 

$

469,944

 

$

(2,992

)

 

 

(g)

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
December 31,
2010

 

Net
Activity

 

Shares
Held at
September 30,
2011

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BIF California

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Fund

 

 

6,758,071

 

 

(6,431,798

)

 

326,273

 

$

1,290

 

 

 

(h)

Represents the current yield as of report date.


 

 

 

 

 

 

 

 

 

BLACKROCK CALIFORNIA MUNICIPAL 2018 TERM TRUST

SEPTEMBER 30, 2011

3


 

 

 

 

Schedule of Investments (concluded)

BlackRock California Municipal 2018 Term Trust (BJZ)

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments. These inputs are categorized in three broad levels for financial reporting purposes 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 categorization of a value determined for investments is based on the pricing transparency of the investment and does not necessarily correspond to the Trust’s perceived risk of 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 September 30, 2011 in determining the fair valuation of the Trust’s investments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments1

 

 

—

 

$

152,669,048

 

 

—

 

$

152,669,048

 

Short-Term

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities

 

$

326,273

 

 

—

 

 

—

 

 

326,273

 

Total

 

$

326,273

 

$

152,669,048

 

 

—

 

$

152,995,321

 

 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

 

 

 

 

 

 

BLACKROCK CALIFORNIA MUNICIPAL 2018 TERM TRUST

SEPTEMBER 30, 2011

4

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 California Municipal 2018 Term Trust
   
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock California Municipal 2018 Term Trust
   
  Date: November 23, 2011
   
  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 California Municipal 2018 Term Trust
   
  Date: November 23, 2011
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock California Municipal 2018 Term Trust
     
  Date: November 23, 2011