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

   

 

BlackRock Municipal Income Trust II
(Exact name of registrant as specified in charter)

 

100 Bellevue Parkway, Wilmington, DE
19809
(Address of principal executive offices)
(Zip code)

 

Robert S. Kapito, President
 BlackRock Municipal Income Trust II

 40 East 52nd Street, New York, NY 10022
(Name and address of agent for service)

 

Registrant's telephone number, including area code:        888-825-2257
 
Date of fiscal year end: August 31
 
Date of reporting period: November 30, 2004
 
   

 

Item 1. Schedule of Investments.

The registrant's unaudited schedule of investments as of the close of the reporting period pursuant to Rule 30b1-5 under the Investment Company Act of 1940 is as follows:

 

PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 2004 (Unaudited)

BlackRock Municipal Income Trust II (BLE)

    Principal          
    Amount   Option Call      
Rating1 (000) Description Provisions2        Value  
      LONG-TERM INVESTMENTS—161.5%      
        California—17.0%      
A   $ 2,250   Agua Caliente Band, Cahuilla Indians Proj., 6.00%, 7/01/18 07/13 @ 100   $ 2,270,880  
A   3,500   California Mobilehome Park Fin. Auth., Palomar Estates East & West, Ser. A,      
              5.25%, 3/15/34, ACA 03/13 @ 102   3,535,735  
A   5,000   California Statewide Cmnty. Dev. Auth., Mem. Hlth. Svcs., Ser. A, 5.50%, 10/01/33 04/13 @ 100   5,147,600  
        Golden St. Tobacco Sec. Corp., Ser. B,      
A-   16,850         5.50%, 6/01/43 06/13 @ 100   17,476,989  
A-   8,800         5.625%, 6/01/38 06/13 @ 100   9,227,944  
B-   11,410   Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines, Inc., Ser. C, 7.50%, 12/01/24 12/12 @ 102   11,048,759  
NR   4,620   San Francisco City & Cnty. Redev. Agcy., Cmnty. Facs. Dist., Mission Bay South, 6.625%, 8/01/27 08/11 @ 101   4,814,918  
        San Marcos Spl. Tax, Cmnty. Facs. Dist. No. 02-01,      
NR   990         5.90%, 9/01/28 09/10 @ 102   993,554  
NR   1,855         5.95%, 9/01/35 09/10 @ 102   1,861,641  
             
 
              56,378,020  
             
 
        Colorado—4.6%      
AA   10,000   Colorado Hlth. Facs. Auth., Catholic Hlth. Initiatives, Ser. A, 5.50%, 3/01/32 03/12 @ 100   11,068,000  
AAA   4,000   Northwest Pkwy. Pub. Hwy. Auth., Ser. A, 5.25%, 6/15/41, FSA 06/11 @ 102   4,099,400  
             
 
              15,167,400  
             
 
        Connecticut—0.8%      
A3   2,500   Connecticut Dev. Auth., Connecticut Lt. & Pwr., PCR, Ser. B, 5.95%, 9/01/28 10/08 @ 102   2,644,550  
             
 
        District of Columbia—5.9%      
A   1,265   Friendship Pub. Charter Sch., Inc., 5.25%, 6/01/33, ACA 06/14 @ 100   1,261,281  
        Tobacco Settlement Fin. Corp.,      
BBB   7,500         6.50%, 5/15/33 No Opt. Call   7,199,625  
BBB   11,500         6.75%, 5/15/40 05/11 @ 101   11,317,495  
             
 
              19,778,401  
             
 
        Florida—18.5%      
Baa3   4,500   Capital Trust Agcy., Air Cargo Fort Lauderdale Proj., 5.75%, 1/01/32 01/14 @ 101   4,309,785  
        Fishhawk Cmnty. Dev. Dist. II, Spec. Assmnt. Rev,      
NR   3,000         Ser. A, 6.25%, 5/01/34 05/13 @ 101   3,095,280  
NR   4,190         Ser. B, 5.00%, 11/01/07 No Opt. Call   4,237,724  
NR   4,780   Lakes by the Bay So. Cmnty. Dev. Dist., Florida Spl. Assmt., Ser. A, 6.25%, 5/01/34 05/14 @ 101   4,896,489  
A-   2,650   Leesburg Hosp., Leesburg Regl. Med. Ctr. Proj., 5.50%, 7/01/32 07/12 @ 100   2,685,908  
NR   3,200   Live Oak Comm. Dev., Dist. No. 1 Spec. Assmnt. Rev., Ser. A, 6.30%, 5/01/34 05/13 @ 101   3,297,216  
BB   6,230   Miami Beach Hlth. Facs. Auth., Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21 11/14 @ 100   6,594,019  
A   6,850   Orange Cnty. Hlth. Facs. Auth., Hosp. Adventist Hlth. Sys. Proj., 5.625%, 11/15/32 11/12 @ 101   7,174,073  
AA-   14,000   Pinellas Cnty. Hlth. Fac. Auth., Baycare Hlth. Sys. Proj., 5.50%, 11/15/33 05/13 @ 100   14,409,220  
NR   2,085   Stevens Plantation Cmnty. Dev. Dist., Spl. Assmt. Rev., Ser. A, 7.10%, 5/01/35 05/14 @ 100   2,118,214  
NR   4,625   Sumter Cnty. Ind. Dev. Auth., No. Sumter Util. Co. LLC, 6.90%, 10/01/34 10/09 @ 100   4,680,870  
NR3   3,715   Sumter Landing Cmnty. Dev., Spec. Assmnt. Rev, 6.875%, 5/01/23 05/13 @ 101   3,863,377  
             
 
              61,362,175  
             
 
        Georgia—7.9%      
AAA   4,000   Atlanta Arpt. Passenger Fac., Ser. J, 5.00%, 1/01/34, FSA 01/15 @ 100   4,016,880  
        Atlanta Wtr. & Wstwtr., FSA,      
AAA   5,000         5.00%, 11/01/37 11/14 @ 100   5,034,750  
AAA   11,995         5.00%, 11/01/43 11/14 @ 100   12,012,992  
BBB   5,000   Milledgeville-Baldwin Cnty. Dev. Auth., Georgia Coll. & St. Univ. Fndtn., 5.625%, 9/01/30 09/14 @ 101   5,144,300  
             
 
              26,208,922  
             
 
        Illinois—16.0%      
AAA   4,000   Bolingbrook, GO, Ser. A, 5.375%, 1/01/38, FGIC 01/12 @ 100   4,158,360  
NR   2,470   Centerpoint Intermodal Ctr., Ser. A, 8.00%, 6/15/23 No Opt. Call   2,456,613  
A   7,500 4 Illinois Dev. Fin. Auth., Hosp. Rev., Adventist Hlth. Sys. Sunbelt Oblig., 5.65%, 11/15/24 11/09 @ 101   7,783,275  
AA+   1,880   Illinois Fin. Auth. Rev., Northwestern Mem. Hosp., Ser. A, 5.50%, 8/15/43 08/14 @ 100   1,926,699  
A2   8,000   Illinois Hlth. Facs. Auth., Elmhurst Mem. Hlth. Care, 5.50%, 1/01/22 01/13 @ 100   8,268,160  
AAA   15,000   Illinois Sports Facs. Auth., Ded. St. Tax Supported Rev., Zero Coupon, 6/15/30, AMBAC 06/15 @ 101   11,559,900 

1

BlackRock Municipal Income Trust II (BLE) (continued)

    Principal          
    Amount   Option Call      
Rating1 (000) Description Provisions2        Value  
      Illinois—(continued)      
        Met. Pier & Exposition Auth., Ded. St. Tax Rev., McCormick Place Expansion Proj., Ser. A, MBIA,      
AAA   $45,190         Zero Coupon, 6/15/33 No Opt. Call   $ 9,689,640  
AAA   5,000         Zero Coupon, 6/15/40 No Opt. Call   724,700  
AAA   4,290   O’Hare Intl. Arpt., Refdg. Gen. Arpt. 3rd Lien, Ser. C-2, 5.25%, 1/01/30, FSA 01/14 @ 100   4,371,381  
AAA   2,340   Schaumburg, Ser. B, 5.00%, 12/01/38, FGIC 12/14 @ 100   2,347,301  
             
 
              53,286,029  
             
 
        Indiana—9.4%      
Baa2   5,500   Fort Wayne, PCR, Gen. Mtrs. Corp. Proj., 6.20%, 10/15/25 12/12 @ 101   5,746,510  
AA   5,000   Indiana Hlth. Fac. Fin. Auth., Ascension Hlth., Ser. F, 5.375%, 11/15/25 11/12 @ 101   5,076,150  
AAA   19,735   Indianapolis Local Pub. Impvt. Bond Bank, Wtr. Wks. Proj., Ser. A, 5.25%, 7/01/33, MBIA 07/12 @ 100   20,356,060  
             
 
              31,178,720  
             
 
        Louisiana—0.7%      
Baa1   2,485   Louisiana Local Gov’t. Env. Facs. & Cmnty. Dev. Auth., Oakleigh Apts. Proj., Ser. A,      
              6.375%, 6/01/38 06/13 @ 102   2,481,571  
             
 
        Maryland—3.4%      
NR   3,000   Frederick Cnty. Spl. Oblig., Urbana Cmnty. Dev. Auth. Proj., Ser. A, 5.95%, 7/01/30 07/07 @ 102   3,001,830  
Baa3   5,000   Maryland Econ. Dev. Corp., Student Hsg. Rev., Univ. of Maryland Proj., Ser. A, 5.75%, 10/01/33 10/13 @ 100   5,174,400  
        Maryland Hlth. & Higher Edl. Facs. Auth.,      
BBB   2,240         Medstar Hlth., 5.50%, 8/15/33 08/14 @ 100   2,256,553  
A3   1,000         Union Hosp. of Cecil Cnty. Proj., 5.625%, 7/01/32 07/12 @ 100   1,030,710  
             
 
              11,463,493  
             
 
        Mississippi—1.7%      
BBB   4,950   Lowndes Cnty. Sld. Wst. Disp., PCR, Weyerhaeuser Co. Proj., Ser. A, 6.80%, 4/01/22 No Opt. Call   5,828,031  
             
 
        Missouri—1.9%      
NR   6,000   Dept. of Transp., Rt. 370/Missouri Bottom Rd./Taussig Rd. Transp. Dev., 7.20%, 5/01/33 05/13 @ 100   6,202,320  
             
 
        Nevada—3.0%      
AAA   1,300   Clark Cnty. Arpt., Ser. A-2, 5.00%, 7/01/36, FGIC 07/14 @ 100   1,290,146  
NR   2,990   Henderson Local Impvt. Dist. No. T-14, 5.80%, 3/01/23 03/05 @ 103   3,046,989  
        No. Las Vegas Local Impvt., Spec. Impvt. Dist. 60 Aliante,      
NR   2,500         6.125%, 12/01/17 12/04 @ 103   2,577,725  
NR   3,000         6.40%, 12/01/22 12/04 @ 103   3,087,720  
             
 
              10,002,580  
             
 
        New Jersey—12.3%      
        New Jersey Econ. Dev. Auth.,      
BBB   9,000         Cigarette Tax Rev., 5.50%, 6/15/31 06/14 @ 100   8,936,280  
BBB   4,000         Cigarette Tax Rev., 5.75%, 6/15/34 06/14 @ 100   4,061,520  
B   10,100         Continental Airlines, Inc. Proj., 7.20%, 11/15/30 11/10 @ 101   8,268,264  
Baa3   7,475         Kapkowski Road Landfill Proj., 6.50%, 4/01/28 No Opt. Call   8,452,730  
Baa3   10,000         Kapkowski Road Landfill Proj., 6.50%, 4/01/31 No Opt. Call   11,171,200  
             
 
              40,889,994  
             
 
        New Mexico—1.4%      
Baa1   5,200   New Mexico Hsg. Auth., Region III, Villa Delaware Oso Apts. Proj., Ser. A, 6.00%, 1/01/38 01/13 @ 102   4,673,604  
             
 
        New York—6.7%      
AAA   2,845   Env. Facs. Corp., St. Clean Wtr. & Drinking Wtr. Rev., NYC Mun. Wtr. Proj., Ser. B,      
              5.00%, 6/15/31 06/12 @ 100   2,884,147  
AAA   3,775   Met. Transp. Auth., Svc. Contract, Ser. A, 5.00%, 7/01/30, AMBAC 07/12 @ 100   3,817,544  
AAA   5,000   New York City Mun. Wtr. Fin. Auth., Wtr. & Swr. Sys. Rev., Ser. B, 5.00%, 6/15/36, FSA 12/14 @ 100   5,019,500  
AAA   1,655   New York Dorm. Auth., Montefiore Hosp. Proj., 5.00%, 8/01/33, FGIC 02/15 @ 100   1,668,009  
Caa2   8,800   Port Auth. of NY & NJ, Spec. Oblig. Rev., Contl/Eastn. LaGuardia Proj., 9.00%, 12/01/10 12/04 @ 100   8,840,744  
             
 
              22,229,944  
             
 
        Oklahoma—1.2%      
B-   3,925   Tulsa Mun. Arpt. Trust, Ser. A, 7.75%, 6/01/35 No Opt. Call   3,990,744  
             
 
        Pennsylvania—3.1%      
BBB+   5,000   Monroe Cnty. Hosp. Auth., Hosp. Pocono Med. Ctr., 6.00%, 1/01/43 01/14 @ 100   5,136,950  
A3   5,175   Pennsylvania Econ. Dev. Fin. Auth., Amtrak Proj., Ser. A, 6.375%, 11/01/41 05/11 @ 101   5,348,725  
             
 
              10,485,675  
             
 

2

BlackRock Municipal Income Trust II (BLE) (continued)

    Principal          
    Amount   Option Call      
Rating1 (000) Description Provisions2        Value  
      South Carolina—6.9%      
        Greenwood Cnty. Hosp., Self Mem. Hosp. Facs.,      
A   $ 3,280         5.50%, 10/01/26 10/11 @ 100   $ 3,360,294  
A   3,250         5.50%, 10/01/31 10/11 @ 100   3,322,020  
NR   3,995   Lancaster Cnty. Assmnt., Edgewater Impvt. Dist. Ser. A, 6.875%, 11/01/35 11/13 @ 101   4,113,532  
        So. Carolina Jobs Econ. Dev. Auth., Hosp. Facs. Rev.,      
AA   3,750         Georgetown Mem. Hosp., 5.375%, 2/01/30, RAA 08/11 @ 100   3,864,975  
BBB   2,640         Palmetto Hlth. Alliance, Ser. A, 6.25%, 8/01/31 08/13 @ 100   2,759,935  
BBB   5,000         Palmetto Hlth. Alliance, Ser. C, 6.875%, 8/01/27 08/13 @ 100   5,468,200  
             
 
              22,888,956  
             
 
        Tennessee—2.6%      
AAA   20,405   Knox Cnty. Hlth. Edl. & Hsg. Facs. Brd., Hosp. Facs. Rev., Ser. A, Zero Coupon, 1/01/21, FSA 01/13 @ 63.44   8,530,718  
             
 
        Texas—18.4%      
BBB   1,650   Brazos River Auth., PCR, TXU Elec. Co. Proj., Ser. C, 6.75%, 10/01/38 10/13 @ 101   1,749,792  
AAA   2,015   Dallas Area Rapid Trans., 5.00%, 12/01/31, AMBAC 12/11 @ 100   2,018,526  
BBB   20,000   Gulf Coast Wst. Disp. Auth., Env. Impvt. Rev., Ser. A, 6.10%, 8/01/24 08/12 @ 100   20,880,000  
AAA   25,375   Harris Cnty. Houston Sports Auth., Ser. A-3, Zero Coupon, 11/15/36, MBIA 11/24 @ 49.423   3,938,961  
        Sabine River Auth., PCR, TXU Elec. Co. Proj., Ser. B,      
BBB+   5,900         Zero Coupon, 11/01/11 No Opt. Call   6,384,449  
BBB   2,000         6.15%, 8/01/22 08/13 @ 101   2,145,560  
        Texas Tpke. Auth., Central Sys. Rev., AMBAC,      
AAA   73,370         Zero Coupon, 8/15/36 08/12 @ 24.171   11,163,246  
AAA   65,000         Zero Coupon, 8/15/37 08/12 @ 22.708   9,293,050  
AAA   27,600         Zero Coupon, 8/15/38 08/12 @ 21.384   3,716,064  
             
 
              61,289,648  
             
 
        Utah—1.2%      
BBB   4,000   Tooele Cnty. Hazardous Wst. Treat., Union Pacific Proj., Ser. A, 5.70%, 11/01/26 04/08 @ 102   4,101,600  
             
 
        Virginia—7.0%      
NR3   13,340   Alexandria Redev. & Hsg. Auth., 3001 Park Ctr. Apts. Proj., Ser. A, 6.375%, 4/01/34 04/08 @ 103   13,641,751  
AAA   9,000   Halifax Cnty. Indl. Dev. Auth., Exempt Fac. Rev., Old Dominion Elec. Coop. Proj.,      
              5.625%, 6/01/28, AMBAC 06/13 @ 101   9,497,610  
             
 
              23,139,361  
             
 
        West Virginia—1.9%      
BBB+   5,000   Mason Cnty., PCR, Rfdg. Appalachian Pwr. Co. Proj., Ser. L, 5.50%, 10/01/22 10/11 @ 100   5,061,950  
AAA   1,115   West Virginia Econ. Dev. Auth., Correctional Juvenile Safety, Ser. A, 5.00%, 6/01/29, MBIA 06/14 @ 100   1,130,989  
             
 
              6,192,939  
             
 
        Wisconsin—4.1%      
        Wisconsin Hlth. & Edl. Facs. Auth.,      
A-   3,930         Aurora Hlth. Care, 6.40%, 4/15/33 04/13 @ 100   4,243,575  
A-   4,000         Synergy Hlth., Inc., 6.00%, 11/15/32 08/13 @ 100   4,136,880  
A   5,000         Wheaton Franciscan Svcs., 5.75%, 8/15/25 02/12 @ 101   5,228,800  
             
 
              13,609,255  
             
 
        Multi-State—3.9%      
        Charter Mac Equity Issuer Trust,      
A3   1,000 5       Ser. A, 5.75%, 4/30/15 No Opt. Call   1,042,910  
A3   3,500 5       Ser. A, 6.00%, 4/30/19 No Opt. Call   3,651,095  
Baa1   5,000 5       Ser. B, 6.00%, 4/30/15 No Opt. Call   5,211,950  
Baa1   3,000 5       Ser. B, 6.30%, 4/30/19 No Opt. Call   3,141,960  
             
 
              13,047,915  
             
 
        Total Long-Term Investments (cost $518,694,920)     537,052,565  
             
 
     
        SHORT-TERM INVESTMENTS—0.5%      
        California—0.0%      
A1+   75 6 California Hlth. Facs. Fin. Auth., Ins. Scripps Hlth., Ser. B, 1.59%, 12/01/04, MBIA FRDD N/A   75,000  
             
 
        New York—0.1%      
A1+   200 6 New York City Mun. Wtr. Fin. Auth., Wtr. & Swr. Sys. Rev., Ser. C, 1.66%, 12/01/04, FRDD N/A   200,000  
             
 

3

BlackRock Municipal Income Trust II (BLE) (continued)

               
    Shares          
  (000) Description          Value  
             
      MONEY MARKET FUND—0.4%      
    1,400   AIM Tax Free Investment Co. Cash Reserve Portfolio     $ 1,400,000  
             
 
        Total Short-Term Investments (cost $1,675,000)     1,675,000  
             
 
        Total Investments—162.0% (cost $520,369,920)     $538,727,565  
        Liabilities in excess of other assets—(0.2)%     (685,934 )
        Preferred shares at redemption value, including dividends payable—(61.8)%     (205,590,524 )
             
 
        Net Assets Applicable to Common Shareholders—100%     $332,451,107  
             
 

1 Using the higher of S&P’s, Moody’s or Fitch’s rating.
2 Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.
3 Security is deemed to be of investment grade quality by the investment advisor.
4 Entire or partial principal amount pledged as collateral for financial futures contracts.
5 Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of November 30, 2004, the Trust held 3.9% of it nets assets, with a current market value of $13,047,915, in securities restricted as to resale.
6 For purposes of amortized cost valuation, the maturity date of these instruments is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Rate shown as of November 30, 2004.

 
KEY TO ABBREVIATIONS
  ACA — American Capital Access GO — General Obligation
  AMBAC — American Municipal Bond Assurance Corporation MBIA — Municipal Bond Insurance Association
  FGIC — Financial Guaranty Insurance Company PCR — Pollution Control Revenue
  FRDD — Floating Rate Daily Demand RAA — Radian Asset Assurance
  FSA — Financial Security Assurance    

         

4

 

Item 2. Controls and Procedures.

(a) The registrant's principal executive officer and principal financial officer have evaluated the registrant's disclosure controls and procedures within 90 days of this filing and have concluded that the registrant's disclosure controls and procedures are effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-Q was recorded, processed, summarized, and reported timely.

(b) The registrant's principal executive officer and principal financial officer are aware of no changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 3. Exhibits.

Separate certifications of the registrant's principal executive and financial officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached as 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)     BlackRock Municipal Income Trust II
 

 

By: /s/ Henry Gabbay
 
Name: Henry Gabbay
Title: Treasurer
Date: January 20, 2005

 

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/ Robert S. Kapito
 
Name: Robert S. Kapito
Title: Principal Executive Officer
Date: January 20, 2005

 

By: /s/ Henry Gabbay
 
Name: Henry Gabbay
Title: Principal Executive Officer
Date: January 20, 2005