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 811-08215

 

Name of Fund: BlackRock MuniHoldings Fund II, Inc. (MUH)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniHoldings Fund II, Inc., 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: 04/30/2012

 

Date of reporting period: 01/31/2012

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments January 31, 2012 (Unaudited)

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 1.7%

 

 

 

 

 

 

 

County of Jefferson Alabama, RB,
Series A, 5.00%, 1/01/24

 

$

3,450

 

$

3,140,155

 

Alaska — 0.7%

 

 

 

 

 

 

 

Northern Tobacco Securitization Corp.,
RB, Asset-Backed, 5.00%, 6/01/46

 

 

1,660

 

 

1,221,876

 

Arizona — 1.7%

 

 

 

 

 

 

 

Phoenix IDA Arizona, Refunding RB,
America West Airlines Inc. Project,
AMT, 6.30%, 4/01/23

 

 

2,060

 

 

1,793,972

 

Pima County IDA, RB, Arizona Charter
Schools Project, Series C, 6.75%,
7/01/31

 

 

925

 

 

925,370

 

Show Low Improvement District, Special
Assessment Bonds, District No. 5,
6.38%, 1/01/15

 

 

325

 

 

327,473

 

 

 

 

 

 

 

3,046,815

 

Arkansas — 0.5%

 

 

 

 

 

 

 

County of Little River Arkansas,
Refunding RB, Georgia-Pacific Corp.
Project, AMT, 5.60%, 10/01/26

 

 

830

 

 

832,623

 

California — 15.6%

 

 

 

 

 

 

 

Benicia Unified School District, GO, CAB,
Refunding, Series A (NPFGC), 5.63%,
8/01/20 (a)

 

 

2,000

 

 

1,494,400

 

California Health Facilities Financing
Authority, Refunding RB:

 

 

 

 

 

 

 

St. Joseph Health System,
Series A, 5.75%, 7/01/39

 

 

1,110

 

 

1,217,148

 

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

 

 

1,585

 

 

1,825,984

 

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

 

 

600

 

 

692,598

 

California Statewide Communities
Development Authority, RB, John Muir
Health, 5.13%, 7/01/39

 

 

1,090

 

 

1,137,404

 

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

 

 

400

 

 

445,212

 

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

 

 

2,975

 

 

3,289,011

 

San Diego Unified School District
California, GO, CAB, Election of 2008,
Series A, 6.06%, 7/01/29 (a)

 

 

2,525

 

 

1,116,631

 

San Marino Unified School District
California, GO, Series A (NPFGC) (a):

 

 

 

 

 

 

 

5.51%, 7/01/17

 

 

1,820

 

 

1,605,367

 

5.56%, 7/01/18

 

 

1,945

 

 

1,654,184

 

5.61%, 7/01/19

 

 

2,070

 

 

1,674,423

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

6.00%, 3/01/33

 

 

1,265

 

 

1,502,592

 

6.50%, 4/01/33

 

 

7,325

 

 

9,009,311

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 

California (concluded)

 

 

 

 

 

 

 

State of California, GO, Various Purpose
(concluded):

 

 

 

 

 

 

 

5.00%, 10/01/41

 

$

1,535

 

$

1,662,098

 

 

 

 

 

 

 

28,326,363

 

Colorado — 1.9%

 

 

 

 

 

 

 

Colorado Educational & Cultural
Facilities Authority, RB, Charter
School, Colorado Springs, 5.50%,
7/01/40

 

 

1,055

 

 

1,076,300

 

Plaza Metropolitan District No. 1
Colorado, Tax Allocation Bonds, Public
Improvement Fee, Tax Increment,
Subordinate Public Improvement Fee,
Tax Increment, 8.13%, 12/01/25

 

 

860

 

 

835,860

 

Regional Transportation District, COP,
Series A, 5.38%, 6/01/31

 

 

510

 

 

574,260

 

University of Colorado, RB, Series A,
5.38%, 6/01/38

 

 

920

 

 

1,058,267

 

 

 

 

 

 

 

3,544,687

 

Connecticut — 1.6%

 

 

 

 

 

 

 

Connecticut State Health & Educational
Facility Authority, RB:

 

 

 

 

 

 

 

Ascension Health Senior
Credit, 5.00%, 11/15/40

 

 

685

 

 

736,108

 

Wesleyan University, 5.00%,
7/01/35

 

 

1,875

 

 

2,113,406

 

 

 

 

 

 

 

2,849,514

 

Delaware — 1.5%

 

 

 

 

 

 

 

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

 

 

570

 

 

590,942

 

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

 

 

2,050

 

 

2,070,336

 

 

 

 

 

 

 

2,661,278

 

District of Columbia — 2.3%

 

 

 

 

 

 

 

Metropolitan Washington Airports
Authority, RB:

 

 

 

 

 

 

 

CAB, Second Senior Lien, Series B
(AGC), 7.08%, 10/01/34 (a)

 

 

10,170

 

 

3,169,684

 

First Senior Lien, Series A,
5.00%, 10/01/39

 

 

255

 

 

276,586

 

First Senior Lien, Series A,
5.25%, 10/01/44

 

 

745

 

 

808,995

 

 

 

 

 

 

 

4,255,265

 

Florida — 5.4%

 

 

 

 

 

 

 

Ballantrae Community Development
District, Special Assessment Bonds,
6.00%, 5/01/35

 

 

1,535

 

 

1,539,313

 

City of Clearwater Florida, RB, Series A,
5.25%, 12/01/39

 

 

1,725

 

 

1,937,727

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2012

1


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Florida (concluded)

 

 

 

 

 

 

 

County of Broward Florida, RB, Water &
Sewer Utility, Series A, 5.25%,
10/01/34

 

$

545

 

$

610,880

 

County of Miami-Dade Florida, RB, CAB,
Sub-Series A (NPFGC), 5.24%,
10/01/37 (a)

 

 

1,765

 

 

389,765

 

Greater Orlando Aviation Authority Florida,
RB, Special Purpose, JetBlue Airways
Corp., AMT, 6.50%, 11/15/36

 

 

1,515

 

 

1,509,258

 

Hillsborough County IDA, RB, National
Gypsum Co., Series B, AMT, 7.13%,
4/01/30

 

 

1,380

 

 

1,283,676

 

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

 

 

1,135

 

 

1,212,895

 

Palm Coast Park Community Development
District, Special Assessment Bonds,
5.70%, 5/01/37

 

 

490

 

 

315,021

 

Preserve at Wilderness Lake Community
Development District, Special
Assessment Bonds, Series A, 5.90%,
5/01/34

 

 

1,185

 

 

1,124,482

 

 

 

 

 

 

 

9,923,017

 

Georgia — 1.3%

 

 

 

 

 

 

 

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

 

 

420

 

 

453,646

 

Metropolitan Atlanta Rapid Transit
Authority, Sales Tax RB, Third Series,
5.00%, 7/01/39

 

 

1,740

 

 

1,893,729

 

 

 

 

 

 

 

2,347,375

 

Guam — 0.6%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

320

 

 

352,102

 

6.75%, 11/15/29

 

 

455

 

 

484,366

 

7.00%, 11/15/39

 

 

275

 

 

291,264

 

 

 

 

 

 

 

1,127,732

 

Hawaii — 0.4%

 

 

 

 

 

 

 

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

 

 

680

 

 

758,214

 

Idaho — 1.1%

 

 

 

 

 

 

 

Power County Industrial Development
Corp., RB, FMC Corp. Project, AMT,
6.45%, 8/01/32

 

 

2,000

 

 

2,002,320

 

Illinois — 9.2%

 

 

 

 

 

 

 

City of Chicago Illinois, Board of
Education, GO:

 

 

 

 

 

 

 

5.50%, 12/01/39

 

 

1,060

 

 

1,201,065

 

5.00%, 12/01/41

 

 

350

 

 

374,706

 

City of Chicago Illinois, RB:

 

 

 

 

 

 

 

O’Hare International Airport,
General, Third Lien, Series A,
5.75%, 1/01/39

 

 

2,500

 

 

2,853,500

 

Sales Tax Revenue, 5.25%, 1/01/38

 

 

410

 

 

462,341

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

City of Chicago Illinois, Refunding RB,
O’Hare International Airport, General,
Third Lien, Series C, 6.50%, 1/01/41

 

$

2,935

 

$

3,546,771

 

City of Chicago Illinois, Special
Assessment Bonds, Lake Shore East,
6.75%, 12/01/32

 

 

900

 

 

929,817

 

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

 

 

530

 

 

591,157

 

Illinois Finance Authority, Refunding RB,
Central DuPage Health, Series B,
5.50%, 11/01/39

 

 

800

 

 

874,776

 

Metropolitan Pier & Exposition Authority,
Refunding RB:

 

 

 

 

 

 

 

CAB, Series B-1 (AGM), 6.25%,
6/15/47 (a)

 

 

9,555

 

 

1,387,577

 

Series B-1 (AGM), 5.00%,
6/15/50

 

 

1,585

 

 

1,630,220

 

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

 

 

1,260

 

 

1,295,507

 

Railsplitter Tobacco Settlement
Authority, RB:

 

 

 

 

 

 

 

5.50%, 6/01/23

 

 

675

 

 

770,121

 

6.00%, 6/01/28

 

 

500

 

 

560,660

 

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

 

 

315

 

 

348,809

 

 

 

 

 

 

 

16,827,027

 

Indiana — 2.1%

 

 

 

 

 

 

 

Indiana Finance Authority, RB:

 

 

 

 

 

 

 

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

 

 

790

 

 

883,267

 

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

 

 

420

 

 

451,189

 

Indiana Finance Authority, Refunding
RB, Parkview Health System, Series A,
5.75%, 5/01/31

 

 

1,660

 

 

1,844,459

 

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

 

 

565

 

 

644,383

 

 

 

 

 

 

 

3,823,298

 

Iowa — 0.6%

 

 

 

 

 

 

 

Iowa State Student Loan Liquidity Corp.,
RB, 5.15%, 12/01/22

 

 

1,080

 

 

1,158,289

 

Kansas — 1.1%

 

 

 

 

 

 

 

Kansas Development Finance Authority,
Refunding RB:

 

 

 

 

 

 

 

Adventist Health, 5.75%,
11/15/38

 

 

1,105

 

 

1,265,855

 

Sisters of Leavenworth,
Series A, 5.00%, 1/01/40

 

 

785

 

 

836,692

 

 

 

 

 

 

 

2,102,547

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2012

2


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Kentucky — 0.3%

 

 

 

 

 

 

 

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

 

$

510

 

$

563,122

 

Louisiana — 2.5%

 

 

 

 

 

 

 

East Baton Rouge Sewerage
Commission, RB, Series A, 5.25%,
2/01/39

 

 

420

 

 

466,935

 

Louisiana Local Government
Environmental Facilities & Community
Development Authority, RB, Westlake
Chemical Corp. Projects, 6.75%,
11/01/32

 

 

2,500

 

 

2,699,225

 

New Orleans Aviation Board, Refunding
RB, Passenger Facility Charge,
Series A, 5.25%, 1/01/41

 

 

310

 

 

333,231

 

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

 

 

1,000

 

 

1,013,850

 

 

 

 

 

 

 

4,513,241

 

Maine — 0.1%

 

 

 

 

 

 

 

Maine Health & Higher Educational
Facilities Authority, RB, Series A,
5.00%, 7/01/39

 

 

150

 

 

159,342

 

Maryland — 1.0%

 

 

 

 

 

 

 

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

 

 

220

 

 

226,954

 

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

 

 

415

 

 

430,156

 

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

 

 

1,095

 

 

1,207,358

 

 

 

 

 

 

 

1,864,468

 

Massachusetts — 4.1%

 

 

 

 

 

 

 

Massachusetts Development Finance
Agency, RB, Neville Communities,
Series A (Ginnie Mae):

 

 

 

 

 

 

 

5.75%, 6/20/22

 

 

600

 

 

654,984

 

6.00%, 6/20/44

 

 

1,500

 

 

1,607,460

 

Massachusetts Development Finance
Agency, Refunding RB, Boston
University, Series P, 5.45%, 5/15/59

 

 

845

 

 

979,651

 

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

 

 

910

 

 

970,278

 

Massachusetts HFA, HRB, M/F Housing,
Series A, AMT, 5.25%, 12/01/48

 

 

2,100

 

 

2,105,628

 

Massachusetts HFA, Refunding HRB,
Series F, AMT, 5.70%, 6/01/40

 

 

1,060

 

 

1,112,428

 

 

 

 

 

 

 

7,430,429

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan — 2.1%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Senior Lien,
Series B (AGM), 7.50%, 7/01/33

 

$

460

 

$

580,635

 

Flint Hospital Building Authority
Michigan, Refunding RB, Hurley
Medical Center (ACA), 6.00%,
7/01/20

 

 

905

 

 

909,932

 

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

 

 

690

 

 

743,682

 

Michigan State Hospital Finance
Authority, Refunding RB, Hospital,
Henry Ford Health, 5.75%, 11/15/39

 

 

1,520

 

 

1,639,411

 

 

 

 

 

 

 

3,873,660

 

Minnesota — 3.0%

 

 

 

 

 

 

 

City of Minneapolis Minnesota,
Refunding RB, Fairview Health
Services, Series A, 6.75%, 11/15/32

 

 

1,540

 

 

1,800,460

 

Tobacco Securitization Authority
Minnesota, Refunding RB:

 

 

 

 

 

 

 

5.25%, 3/01/25

 

 

2,260

 

 

2,554,139

 

5.25%, 3/01/31

 

 

950

 

 

1,030,465

 

 

 

 

 

 

 

5,385,064

 

Nebraska — 0.9%

 

 

 

 

 

 

 

City of Omaha, Nebraska Sanitation
Sewer Revenue, RB, System, 4.25%,
11/15/38

 

 

1,545

 

 

1,629,774

 

New Hampshire — 1.0%

 

 

 

 

 

 

 

New Hampshire Health & Education
Facilities Authority, Refunding RB,
Dartmouth-Hitchcock, 6.00%,
8/01/38

 

 

1,530

 

 

1,750,029

 

New Jersey — 6.2%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.75%,
6/15/29

 

 

3,025

 

 

3,160,944

 

Continental Airlines Inc.
Project, AMT, 6.63%,
9/15/12

 

 

2,000

 

 

2,035,520

 

New Jersey State Turnpike Authority, RB,
Series C (AGM), 5.00%, 1/01/30

 

 

2,500

 

 

2,695,200

 

New Jersey Transportation Trust Fund
Authority, RB:

 

 

 

 

 

 

 

Series A, 5.50%, 6/15/41

 

 

1,025

 

 

1,176,075

 

Series B, 5.25%, 6/15/36

 

 

1,235

 

 

1,389,560

 

Tobacco Settlement Financing Corp.
New Jersey, Refunding RB, Series 1A,
4.50%, 6/01/23

 

 

905

 

 

848,247

 

 

 

 

 

 

 

11,305,546

 

New York — 6.1%

 

 

 

 

 

 

 

Dutchess County Industrial
Development Agency New York,
Refunding RB, St. Francis Hospital,
Series A, 7.50%, 3/01/29

 

 

800

 

 

809,128

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2012

3


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

New York (concluded)

 

 

 

 

 

 

 

Long Island Power Authority, Refunding
RB, Series A, 5.75%, 4/01/39

 

$

1,050

 

$

1,206,439

 

Metropolitan Transportation Authority,
Refunding RB:

 

 

 

 

 

 

 

Series B, 5.00%, 11/15/34

 

 

1,270

 

 

1,405,217

 

Series D, 5.25%, 11/15/40

 

 

610

 

 

676,490

 

New York City Industrial Development
Agency, RB:

 

 

 

 

 

 

 

Continental Airlines Inc.
Project, AMT, 8.00%,
11/01/12

 

 

340

 

 

344,291

 

Continental Airlines Inc.
Project, Mandatory Put
Bonds, AMT, 8.38%,
11/01/16

 

 

525

 

 

530,933

 

Series C, 6.80%, 6/01/28

 

 

415

 

 

429,982

 

New York City Transitional Finance
Authority, RB, Fiscal 2009, Series S-3,
5.25%, 1/15/39

 

 

3,300

 

 

3,649,437

 

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

 

 

615

 

 

665,737

 

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

 

 

 

 

 

 

 

6.00%, 12/01/36

 

 

650

 

 

703,625

 

6.00%, 12/01/42

 

 

630

 

 

679,625

 

 

 

 

 

 

 

11,100,904

 

North Carolina — 0.4%

 

 

 

 

 

 

 

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

 

 

705

 

 

749,387

 

Pennsylvania — 3.3%

 

 

 

 

 

 

 

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

 

 

1,095

 

 

893,016

 

Pennsylvania Economic Development
Financing Authority, RB:

 

 

 

 

 

 

 

American Water Co. Project,
6.20%, 4/01/39

 

 

1,830

 

 

2,125,582

 

National Gypsum Co., Series A,
AMT, 6.25%, 11/01/27

 

 

2,750

 

 

2,439,635

 

Philadelphia Authority for Industrial
Development, RB, Commercial
Development, AMT, 7.75%,
12/01/17

 

 

540

 

 

540,632

 

 

 

 

 

 

 

5,998,865

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Puerto Rico — 4.0%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
RB:

 

 

 

 

 

 

 

CAB, First Sub-Series A,
6.50%, 8/01/44

 

$

2,790

 

$

3,287,569

 

CAB, Series A, 6.42%,
8/01/35 (a)

 

 

10,000

 

 

2,781,400

 

Series C, 6.25%, 8/01/39 (a)

 

 

2,800

 

 

652,036

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB, CAB, First
Sub-Series C, 6.53%, 8/01/38

 

 

2,145

 

 

491,269

 

 

 

 

 

 

 

7,212,274

 

South Carolina — 1.5%

 

 

 

 

 

 

 

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

 

 

1,650

 

 

1,822,161

 

South Carolina State Public Service
Authority, Refunding RB, Santee
Cooper Project, Series C, 5.00%,
12/01/36

 

 

770

 

 

871,524

 

 

 

 

 

 

 

2,693,685

 

Tennessee — 1.2%

 

 

 

 

 

 

 

Hardeman County Correctional Facilities
Corp. Tennessee, RB, Series B,
7.38%, 8/01/17

 

 

2,200

 

 

2,182,246

 

Texas — 8.0%

 

 

 

 

 

 

 

Brazos River Harbor Navigation District,
Refunding RB, Dow Chemical Co.
Project, Series A7, AMT, 6.63%,
5/15/33

 

 

2,500

 

 

2,536,300

 

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

 

 

1,070

 

 

1,145,360

 

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

 

 

760

 

 

866,499

 

City of Houston Texas, Refunding RB,
Senior Lien, Series A, 5.50%,
7/01/39

 

 

535

 

 

590,185

 

Harris County Health Facilities
Development Corp., Refunding RB,
Memorial Hermann Healthcare
System, Series B, 7.25%, 12/01/35

 

 

1,380

 

 

1,642,117

 

La Vernia Higher Education Finance
Corp., RB, KIPP Inc., Series A, 6.38%,
8/15/44

 

 

320

 

 

348,813

 

North Texas Tollway Authority, RB, CAB,
Special Projects System, Series B,
7.55%, 9/01/37 (a)

 

 

1,015

 

 

237,003

 

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

 

 

3,020

 

 

3,327,466

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2012

4


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Texas (concluded)

 

 

 

 

 

 

 

Texas Private Activity Bond Surface
Transportation Corp., RB:

 

 

 

 

 

 

 

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

 

$

2,165

 

$

2,438,786

 

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

 

 

1,300

 

 

1,446,003

 

 

 

 

 

 

 

14,578,532

 

US Virgin Islands — 1.5%

 

 

 

 

 

 

 

United States Virgin Islands, Refunding
RB, Government Refinery, Senior
Secured, Hovensa Coker Project, AMT,
6.50%, 7/01/21

 

 

2,680

 

 

2,680,027

 

Utah — 0.8%

 

 

 

 

 

 

 

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

 

 

1,400

 

 

1,507,310

 

Vermont — 0.5%

 

 

 

 

 

 

 

Vermont Educational & Health Buildings
Financing Agency, RB, Developmental
& Mental Health, Series A, 6.50%,
6/15/32

 

 

1,000

 

 

959,640

 

Washington — 1.1%

 

 

 

 

 

 

 

Seattle Housing Authority Washington,
HRB, Replacement Housing Projects,
6.13%, 12/01/32

 

 

910

 

 

910,601

 

Washington Health Care Facilities
Authority, RB, Swedish Health
Services, Series A, 6.75%, 11/15/41

 

 

990

 

 

1,161,616

 

 

 

 

 

 

 

2,072,217

 

Wisconsin — 3.9%

 

 

 

 

 

 

 

State of Wisconsin, Refunding RB,
Series A, 6.00%, 5/01/36

 

 

3,620

 

 

4,301,936

 

Wisconsin Health & Educational
Facilities Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,235

 

 

1,340,111

 

SynergyHealth, Inc., 6.00%,
11/15/32

 

 

1,360

 

 

1,404,227

 

 

 

 

 

 

 

7,046,274

 

Total Municipal Bonds – 102.8%

 

 

 

 

 

187,204,431

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (b)

 

 

 

 

 

 

 

Arizona — 0.7%

 

 

 

 

 

 

 

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

 

 

1,220

 

 

1,335,932

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (b)

 

Par
(000)

 

Value

 

California — 11.7%

 

 

 

 

 

 

 

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

 

$

1,640

 

$

1,856,083

 

California Educational Facilities
Authority, RB, University of Southern
California, Series B, 5.25%, 10/01/39

 

 

1,335

 

 

1,497,216

 

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

 

 

1,170

 

 

1,279,758

 

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

 

 

553

 

 

635,255

 

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

 

 

4,770

 

 

5,268,799

 

Sequoia Union High School District
California, GO, Refunding, Election of
2004, Series B (AGM), 5.50%,
7/01/35

 

 

5,519

 

 

6,014,097

 

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

 

 

4,599

 

 

4,715,917

 

 

 

 

 

 

 

21,267,125

 

Colorado — 2.4%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB,
Catholic Health:

 

 

 

 

 

 

 

Series C-3 (FSA), 5.10%, 10/01/41

 

 

1,870

 

 

1,967,782

 

Series C-7 (AGM), 5.00%, 9/01/36

 

 

1,200

 

 

1,264,356

 

Colorado Health Facilities Authority,
Refunding RB, Catholic Health,
Series A, 5.50%, 7/01/34

 

 

1,080

 

 

1,195,165

 

 

 

 

 

 

 

4,427,303

 

Connecticut — 3.0%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Series T-1, 4.70%, 7/01/29

 

 

2,300

 

 

2,660,847

 

Series X-3, 4.85%, 7/01/37

 

 

2,370

 

 

2,709,289

 

 

 

 

 

 

 

5,370,136

 

Florida — 1.7%

 

 

 

 

 

 

 

County of Miami-Dade Florida, RB,
Water & Sewer System, 5.00%,
10/01/34

 

 

2,840

 

 

3,155,464

 

Georgia — 1.0%

 

 

 

 

 

 

 

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

 

 

1,649

 

 

1,805,984

 

Massachusetts — 3.3%

 

 

 

 

 

 

 

Massachusetts School Building
Authority, RB:

 

 

 

 

 

 

 

Senior Series B, 5.00%,
10/15/41

 

 

2,280

 

 

2,585,360

 

Series A (AGM), 5.00%, 8/15/30

 

 

2,999

 

 

3,348,955

 

 

 

 

 

 

 

5,934,315

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2012

5


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (b)

 

Par
(000)

 

Value

 

New Hampshire — 0.6%

 

 

 

 

 

 

 

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

 

$

1,019

 

$

1,166,625

 

New York — 10.1%

 

 

 

 

 

 

 

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

 

 

810

 

 

915,231

 

New York City Municipal Water & Sewer
Finance Authority, RB, Series FF-2,
5.50%, 6/15/40

 

 

810

 

 

932,377

 

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

 

 

5,400

 

 

6,134,562

 

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

 

 

3,250

 

 

3,698,273

 

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

 

 

2,910

 

 

3,157,884

 

Sales Tax Asset Receivable Corp., RB,
Series A (AMBAC), 5.25%, 10/15/27

 

 

3,200

 

 

3,531,587

 

 

 

 

 

 

 

18,369,914

 

North Carolina — 0.5%

 

 

 

 

 

 

 

North Carolina Capital Facilities Finance
Agency, Refunding RB, Wake Forest
University, 5.00%, 1/01/38

 

 

800

 

 

879,320

 

Ohio — 4.2%

 

 

 

 

 

 

 

State of Ohio, Refunding RB, Cleveland
Clinic Health, Series A, 5.50%,
1/01/39

 

 

6,974

 

 

7,635,598

 

Tennessee — 1.5%

 

 

 

 

 

 

 

Shelby County Health Educational &
Housing Facilities Board, Refunding
RB, St. Jude’s Children’s Research
Hospital, 5.00%, 7/01/31

 

 

2,500

 

 

2,670,100

 

Texas — 3.1%

 

 

 

 

 

 

 

County of Harris Texas, RB, Senior Lien,
Toll Road, Series A, 5.00%, 8/15/38

 

 

3,360

 

 

3,696,067

 

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

 

 

1,710

 

 

1,932,317

 

 

 

 

 

 

 

5,628,384

 

Virginia — 2.6%

 

 

 

 

 

 

 

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

 

 

2,729

 

 

3,035,345

 

Virginia Small Business Financing
Authority, Refunding RB, Sentara
Healthcare, 5.00%, 11/01/40

 

 

1,553

 

 

1,666,312

 

 

 

 

 

 

 

4,701,657

 

Washington — 0.8%

 

 

 

 

 

 

 

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

 

 

1,365

 

 

1,513,183

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (b)

 

Par
(000)

 

Value

 

Wisconsin — 1.7%

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, Refunding RB,
Froedtert & Community Health Inc.,
5.25%, 4/01/39

 

$

2,859

 

$

3,043,350

 

Total Municipal Bonds Transferred to Tender Option
Bond (TOB) Trusts – 48.9%

 

 

 

 

 

88,904,390

 

Total Long-Term Investments
(Cost – $251,305,992) – 151.7%

 

 

 

 

 

276,108,821

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.01% (c)(d)

 

 

3,675,484

 

 

3,675,484

 

 

 

 

 

 

 

 

 

 

 

Par
(000)

 

 

 

 

Michigan Finance Authority, RB, SAN,
Detroit Schools, Series A-1, 6.45%,
2/20/12

 

$

1,630

 

 

1,630,000

 

Total Short-Term Securities
(Cost – $5,305,484) – 2.9%

 

 

 

 

 

5,305,484

 

Total Investments (Cost - $256,611,476*)–154.6%

 

 

 

 

 

281,414,305

 

Other Assets Less Liabilities– 1.1%

 

 

 

 

 

2,085,884

 

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable – (25.5)%

 

 

 

 

 

(46,427,765

)

AMPS, at Redemption Value – (30.2)%

 

 

 

 

 

(55,000,000

)

Net Assets Applicable to Common Shares– 100.0%

 

 

 

 

$

182,072,424

 

 

 


*


As of January 31, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


 

 

 

 

 

Tax Cost

 

$

209,133,006

 

Gross unrealized appreciation

 

$

26,909,669

 

Gross unrealized depreciation

 

 

(1,042,139

)

Net unrealized appreciation

 

$

25,867,530

 

 

 

(a)

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

 

 

(b)

Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction.


 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2012

6


 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Fund II, Inc. (MUH)


 

 

(c)

Investments in companies considered to be an affiliate of the Fund 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
April 30,
2011

 

Net
Activity

 

Shares
Held at
January 31,
2012

 

Income

 

FFI Institutional Tax-Exempt Fund

 

 

3,999,689

 

 

(324,205

)

 

3,675,484

 

$

460

 

 

 

(d)

Represents the current yield as of report date.

 

 

•

Financial futures contracts sold as of January 31, 2012 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 

40

 

10-Year US
Treasury
Note

 

Chicago
Board of
Trade

 

March
2012

 

$

5,290,000

 

$

(70,076

)

 

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:

 

 

ACA

American Capital Access Corp.

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

EDA

Economic Development Authority

EDC

Economic Development Corp.

ERB

Education Revenue Bonds

FSA

Financial Security Assurance Inc.

Ginnie Mae

Government National Mortgage Association

GO

General Obligation Bonds

HFA

Housing Finance Agency

HRB

Housing Revenue Bonds

IDA

Industrial Development Authority

M/F

Multi-Family

NPFGC

National Public Finance Guarantee Corp.

RB

Revenue Bonds

SAN

State Aid Notes

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs 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

 

 

 

 

•

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 Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Fund’s perceived risk of investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the inputs used as of January 31, 2012 in determining the fair valuation of the Fund’s investments and derivative financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

—

 

$

276,108,821

 

 

—

 

$

276,108,821

 

Short-Term Securities

 

$

3,675,484

 

 

1,630,000

 

 

—

 

 

5,305,484

 

Total

 

$

3,675,484

 

$

277,738,821

 

 

—

 

$

281,414,305

 

 

 

 

 

1

See above Schedule of Investments for values in each state or political subdivision.


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

 

Level 2

 

Level 3

 

Total

 

Derivative Financial Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

(70,076

)

 

—

 

 

—

 

$

(70,076

)

 

 

 

 

2

Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.


 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2012

7

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 MuniHoldings Fund II, Inc.
   
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniHoldings Fund II, Inc.
   
  Date: March 23, 2012
   
  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 MuniHoldings Fund II, Inc.
   
  Date: March 23, 2012
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniHoldings Fund II, Inc.
     
  Date: March 23, 2012