BLACKROCK MUNIHOLDINGS FUND II , INC

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: 04/30/2015

Date of reporting period: 01/31/2015

Item 1 – Schedule of Investments

Schedule of Investments January 31, 2015 (Unaudited)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

Alabama — 3.0%

     

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

    $ 3,450      $ 3,493,125   

County of Jefferson Alabama Sewer Revenue, Refunding RB, Sub-Lien, Series D, 6.00%, 10/01/42

      1,875        2,120,063   
    

 

 

  
               5,613,188   

Alaska — 0.7%

     

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

      1,660        1,360,934   

California — 19.0%

     

Benicia Unified School District, GO, CAB, Series A (NPFGC), 0.00%, 8/01/20 (a)

      2,000        1,820,460   

California Health Facilities Financing Authority, RB:

     

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

      1,110        1,304,250   

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

      1,585        1,919,815   

California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 7/01/33

      635        751,669   

California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A:

     

5.25%, 8/15/39

      80        90,510   

5.25%, 8/15/49

      195        219,355   

California Pollution Control Financing Authority, RB (b):

     

County of San Diego California Water Authority Desalination Project Pipeline, 5.00%, 11/21/45

      620        642,983   

Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45

      730        800,985   

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

      1,090        1,234,850   

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A, 5.25%, 5/15/39    

      400        461,640   
Municipal Bonds    Par  
(000)		     Value  

California (concluded)

     

City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/38

    $ 185      $ 221,221   

San Diego Unified School District California, GO, CAB, Election of 2008, Series A, 0.00%, 7/01/29 (a)

      2,525        1,595,295   

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

     

0.00%, 7/01/17

      1,820        1,775,738   

0.00%, 7/01/18

      1,945        1,863,874   

0.00%, 7/01/19

      2,070        1,947,083   

Sequoia Union High School District, GO, Refunding, Election of 2004, Series B, 5.50%, 7/01/16 (c)

      5,520        5,930,357   

State of California, GO, Various Purposes, 6.00%, 3/01/33

      1,265        1,567,234   

State of California, Refunding, GO, Various Purposes, 6.50%, 4/01/33

      7,325        9,033,703   

State of California Public Works Board, LRB, Various Capital Projects:

     

Series I, 5.00%, 11/01/38

      405        473,040   

Sub-Series I-1, 6.38%, 11/01/34

      600        746,148   

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1, 4.75%, 6/01/25

      1,520        1,520,213   
    

 

 

  
               35,920,423   

Colorado — 1.5%

     

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

      1,055        1,158,306   

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

      510        597,184   

University of Colorado, RB, Series A, 5.38%, 6/01/19 (c)

      920        1,075,232   
    

 

 

  
               2,830,722   

Delaware — 1.5%

     

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

      570        656,332   

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2015    1

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

Delaware (concluded)

     

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

    $ 2,050      $ 2,265,988   
    

 

 

  
               2,922,320   

District of Columbia — 3.2%

     

Metropolitan Washington Airports Authority, Dulles Toll Road, Refunding RB:

     

1st Senior Lien, Series A, 5.00%, 10/01/39

      255        288,680   

1st Senior Lien, Series A, 5.25%, 10/01/44

      1,000        1,139,980   

CAB, 2nd Senior Lien, Series B (AGC), 0.00%, 10/01/34 (a)

      10,170        4,551,075   
    

 

 

  
               5,979,735   

Florida — 4.2%

     

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

      1,430        1,433,418   

City of Clearwater Florida Water & Sewer Revenue, RB, Series A, 5.25%, 12/01/39

      1,725        1,983,422   

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

      545        617,638   

County of Miami-Dade Florida, RB, CAB, Series A (NPFGC), 0.00%, 10/01/37 (a)

      695        216,541   

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

      1,525        1,896,307   

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

      470        403,894   

Village Community Development District No. 10, Special Assessment Bonds, 5.13%, 5/01/43

      1,240        1,409,161   
    

 

 

  
               7,960,381   

Georgia — 0.9%

     

County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 8/15/54

      270        322,969   
Municipal Bonds   

Par  

(000)

     Value  

Georgia (concluded)

     

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

    $ 420      $ 484,403   

Metropolitan Atlanta Rapid Transit Authority, RB, Sales Tax, 3rd Indenture, Series A, 5.00%, 7/01/39

      740        847,285   
    

 

 

  
               1,654,657   

Hawaii — 0.4%

     

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

      680        786,352   

Idaho — 1.1%

     

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

      2,000        2,004,300   

Illinois — 18.8%

     

City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien:

     

Series A, 5.75%, 1/01/39

      2,500        2,958,025   

Series C, 6.50%, 1/01/41

      2,935        3,591,648   

City of Chicago Illinois, GO, Project, Series A, 5.00%, 1/01/34

      1,615        1,702,743   

City of Chicago Illinois, GO, Refunding, Project, Series A, 5.25%, 1/01/32

      2,290        2,499,306   

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

      410        461,787   

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

      600        602,682   

City of Chicago Illinois Board of Education, GO, Series A, 5.25%, 12/01/41

      1,350        1,444,149   

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

      530        612,399   

City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42

      3,645        4,089,471   

County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38

      410        487,621   

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

      800        930,664   

 

                
2    BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2015   

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

Illinois (concluded)

     

Illinois State Toll Highway Authority, RB, Senior:

     

Series A, 5.00%, 1/01/38

    $ 1,165      $ 1,341,428   

Series C, 5.00%, 1/01/36

      1,695        1,985,540   

Series C, 5.00%, 1/01/37

      1,450        1,697,181   

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

     

CAB, Series B (AGM), 0.00%, 6/15/47 (a)

      9,555        2,255,076   

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

      2,230        2,404,364   

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

      1,260        1,355,659   

Railsplitter Tobacco Settlement Authority, RB:

     

5.50%, 6/01/23

      230        275,170   

6.00%, 6/01/28

      500        598,805   

State of Illinois, GO:

     

5.00%, 2/01/39

      810        877,100   

Series A, 5.00%, 4/01/38

      1,920        2,067,840   

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

      315        358,360   

University of Illinois, RB, Auxiliary Facilities System, Series A:

     

5.00%, 4/01/39

      425        490,471   

5.00%, 4/01/44

      520        598,759   
    

 

 

  
               35,686,248   

Indiana — 4.5%

     

City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:

     

6.75%, 1/01/34

      415        514,031   

7.00%, 1/01/44

      1,000        1,246,140   

Indiana Finance Authority, RB, Series A:

     

CWA Authority Project, 1st Lien, 5.25%, 10/01/38

      1,660        1,955,729   

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/44

      225        246,330   

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/48

      740        809,027   

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

      420        475,667   

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

      1,660        1,902,294   
Municipal Bonds   

Par  

(000)

     Value  

Indiana (concluded)

     

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

    $ 565      $ 653,247   

Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 1/15/40

      640        734,893   
    

 

 

  
               8,537,358   

Iowa — 2.1%

     

Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project:

     

5.00%, 12/01/19

      485        519,537   

5.50%, 12/01/22

      1,175        1,249,930   

5.25%, 12/01/25

      230        254,095   

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

      850        903,584   

Iowa Tobacco Settlement Authority, Refunding RB, Asset-Backed, Series C, 5.63%, 6/01/46

      1,270        1,148,499   
    

 

 

  
               4,075,645   

Kansas — 0.7%

     

Kansas Development Finance Authority, Refunding RB, Adventist Health, Series C, 5.75%, 11/15/38

      1,105        1,309,513   

Kentucky — 0.6%

     

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45

      520        599,934   

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 0.00%, 7/01/43 (d)

      635        470,916   
    

 

 

  
               1,070,850   

Louisiana — 3.4%

     

East Baton Rouge Sewerage Commission, RB, Series A, 5.25%, 2/01/19 (c)

      420        492,572   

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

      2,500        2,873,800   

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2015    3

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

Louisiana (concluded)

  

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

    $ 310      $ 337,382   

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:

     

5.50%, 5/15/30

      510        573,551   

5.25%, 5/15/31

      435        487,144   

5.25%, 5/15/32

      555        629,026   

5.25%, 5/15/33

      600        677,112   

5.25%, 5/15/35

      255        287,742   
    

 

 

  
               6,358,329   

Maine — 0.1%

  

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

      150        169,284   

Maryland — 1.1%

  

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

      220        240,088   

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

      605        680,595   

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

      1,095        1,262,283   
    

 

 

  
               2,182,966   

Massachusetts — 3.1%

  

Massachusetts Development Finance Agency, Refunding RB:

     

Boston University, Series P, 5.45%, 5/15/59

      845        1,050,943   

Covanta Energy Project, Series C, AMT, 5.25%, 11/01/42 (b)

      1,155        1,202,921   

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

      360        411,037   

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

      2,100        2,107,350   
Municipal Bonds    Par  
(000)		     Value  

Massachusetts (concluded)

  

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

    $ 980      $ 1,053,432   
    

 

 

  
               5,825,683   

Michigan — 2.9%

  

City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 7/01/39

      2,235        2,460,958   

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

      690        794,935   

Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 7/01/44

      455        492,137   

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

      1,520        1,746,906   
    

 

 

  
               5,494,936   

Minnesota — 1.0%

  

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

      1,540        1,840,269   

Missouri — 0.1%

  

Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44

      125        143,857   

State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 5/01/43

      130        147,493   
    

 

 

  
               291,350   

Nebraska — 0.8%

  

County of Hall Nebraska School District No 2, GO, Grand Island Public Schools, 5.00%, 12/15/39

      1,225        1,441,029   

New Hampshire — 0.9%

  

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

      1,530        1,793,711   

 

                
4    BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2015   

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

New Jersey — 4.3%

  

New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT:

     

5.13%, 9/15/23

    $ 1,040      $ 1,136,855   

5.25%, 9/15/29

      990        1,072,606   

New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 4/01/31

      1,125        1,341,315   

New Jersey Transportation Trust Fund Authority, RB:

     

Transportation Program, Series AA, 5.00%, 6/15/44

      1,810        2,008,521   

Transportation System, Series A, 5.50%, 6/15/41

      1,025        1,181,640   

Transportation System, Series B, 5.25%, 6/15/36

      1,235        1,382,175   
    

 

 

  
               8,123,112   

New York — 7.9%

  

City of New York New York Transitional Finance Authority, RB:

     

Future Tax Secured Bonds, Fiscal 2012, Sub-Series E-1, 5.00%, 2/01/42

      740        854,056   

Future Tax Secured Revenue, Fiscal 2015, Series B-1, 5.00%, 8/01/39

      740        877,048   

County of Dutchess New York Industrial Development Agency, Refunding RB, Bard College Civic Facility, 5.00%, 8/01/46

      2,800        2,832,116   

County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44

      292        336,111   

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

      1,050        1,207,888   

Metropolitan Transportation Authority, RB, Series B, 5.25%, 11/15/38

      1,255        1,503,829   

Metropolitan Transportation Authority, Refunding RB, Dedicated Tax Fund, Series B, 5.00%, 11/15/34

      1,270        1,455,915   

New York Liberty Development Corp., Refunding RB:

     

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49

      615        702,650   
Municipal Bonds    Par  
(000)		     Value  

New York (concluded)

  

New York Liberty Development Corp., Refunding RB (concluded):

     

3 World Trade Center Project, Class 1, 5.00%, 11/15/44 (b)

    $ 1,650      $ 1,764,559   

3 World Trade Center Project, Class 2, 5.15%, 11/15/34 (b)

      175        195,981   

3 World Trade Center Project, Class 2, 5.38%, 11/15/40 (b)

      440        496,580   

Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8:

     

6.00%, 12/01/36

      650        774,748   

6.00%, 12/01/42

      630        749,026   

Westchester Tobacco Asset Securitization, Refunding RB, 5.13%, 6/01/45

      1,200        1,137,252   
    

 

 

  
               14,887,759   

North Carolina — 0.6%

  

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

      705        804,546   

North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 3/01/41

      305        349,387   
    

 

 

  
               1,153,933   

Ohio — 0.2%

  

County of Franklin Ohio, RB, Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 7/01/40

      350        391,374   

Pennsylvania — 2.3%

  

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 7/01/42

      645        696,645   

Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 4/01/39

      1,830        2,157,278   

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2015    5

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

Pennsylvania (concluded)

  

Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypson Co., AMT, 5.50%, 11/01/44

    $ 800      $ 827,704   

Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44

      585        681,285   
    

 

 

  
               4,362,912   

South Carolina — 2.3%

  

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

      1,650        1,887,616   

State of South Carolina Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 12/01/54

      2,040        2,434,169   
    

 

 

  
               4,321,785   

Tennessee — 2.5%

  

City of Chattanooga Tennessee Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45

      720        830,678   

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

      1,225        1,228,161   

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

      2,500        2,638,025   
    

 

 

  
               4,696,864   

Texas — 6.6%

  

Central Texas Regional Mobility Authority, Refunding RB:

     

Senior Lien, 6.25%, 1/01/46

      1,070        1,260,471   

Sub-Lien, 5.00%, 1/01/33

      180        198,792   

City of Austin Texas Airport System, RB, AMT, 5.00%, 11/15/39

      320        370,115   

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

      535        608,659   

County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 1/01/48

      240        281,160   
Municipal Bonds    Par  
(000)		     Value  

Texas (concluded)

  

County of Harris Texas Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.25%, 12/01/18 (c)

    $ 1,380      $ 1,712,608   

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A (a):

     

0.00%, 9/15/40

      2,525        821,938   

0.00%, 9/15/41

      1,395        430,385   

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

      320        368,467   

North Texas Tollway Authority, RB, CAB, Special Project System, Series B, 0.00%, 9/01/37 (a)

      1,015        356,854   

North Texas Tollway Authority, Refunding RB, 2nd Tier System, Series F, 6.13%, 1/01/16 (c)

      3,020        3,182,536   

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

     

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

      1,165        1,427,020   

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

      1,300        1,559,558   
    

 

 

  
               12,578,563   

Vermont — 0.0%

  

Vermont Educational & Health Buildings Financing Agency, RB, 6.50%, 6/15/32

      80        81,278   

Virginia — 3.0%

  

County of Fairfax Virginia EDA, Refunding RB, Goodwin House, Inc., 5.13%, 10/01/42

      2,500        2,608,400   

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

     

5.25%, 1/01/32

      400        442,628   

 

                
6    BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2015   

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

Virginia (concluded)

  

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT (concluded):

     

6.00%, 1/01/37

    $ 2,325      $ 2,719,390   
    

 

 

  
               5,770,418   

Washington — 0.8%

     

Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 1/01/45

      1,195        1,441,923   

Wisconsin — 3.0%

     

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

      3,620        4,328,361   

State of Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Senior Credit Group, Series E, 5.00%, 11/15/33

      1,235        1,411,951   
    

 

 

  
               5,740,312   
Total Municipal Bonds — 109.1%        206,660,416   
    
                  

Municipal Bonds Transferred to

Tender Option Bond Trusts (e)

        

California — 7.6%

                 

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area, Series F-1, 5.63%, 4/01/19 (c)

      1,640        1,961,519   

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

      1,335        1,520,111   

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

      4,770        5,502,100   

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

      2,968        3,416,902   

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

      1,170        1,299,694   

Municipal Bonds Transferred to

Tender Option Bond Trusts (e)

   

Par  

(000)

     Value  

California (concluded)

     

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

    $ 553      $ 646,712   
    

 

 

  
               14,347,038   

Colorado — 2.4%

     

Colorado Health Facilities Authority, RB, Catholic Health (AGM):

     

Series C-3, 5.10%, 10/01/41

      1,870        2,004,939   

Series C-7, 5.00%, 9/01/36

      1,200        1,288,836   

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

      1,080        1,251,655   
    

 

 

  
               4,545,430   

Connecticut — 2.7%

     

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

     

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

      2,299        2,496,571   

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

      2,362        2,562,085   
    

 

 

  
               5,058,656   

Florida — 1.7%

     

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

      2,840        3,298,507   

Georgia — 1.0%

     

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

      1,649        1,851,952   

Massachusetts — 2.0%

     

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

      3,211        3,764,136   

New Hampshire — 0.6%

     

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

      1,019        1,179,212   

New York — 8.4%

     

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 6/15/40

      810        949,501   

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2015    7

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to

Tender Option Bond Trusts (e)

    Par  
(000)		     Value  

New York (concluded)

                 

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

    $ 3,299      $ 3,744,880   

Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (f)

      810        952,250   

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

      5,400        6,354,882   

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

      3,250        3,879,005   
    

 

 

  
               15,880,518   

North Carolina — 0.5%

     

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

      800        906,840   

Ohio — 4.2%

     

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

      6,974        7,948,938   

Texas — 4.9%

     

City of San Antonio Texas Public Service Board, RB, Electric & Gas Systems, Junior Lien, 5.00%, 2/01/43

      1,260        1,453,599   

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

      3,363        3,824,980   

County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41

      1,710        1,989,226   

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

      1,800        2,106,608   
    

 

 

  
               9,374,413   

Utah — 0.8%

     

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

      1,394        1,568,425   

Municipal Bonds Transferred to

Tender Option Bond Trusts (e)

   

Par  

(000)

     Value  

Virginia — 2.6%

                 

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

    $ 2,729      $ 3,064,119   

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

      1,553        1,767,180   
    

 

 

  
               4,831,299   

Washington — 0.8%

     

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

      1,365        1,501,211   

Wisconsin — 1.7%

     

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Obligated Group, Series C, 5.25%, 4/01/39 (f)

      2,859        3,196,116   

Total Municipal Bonds Transferred to

Tender Option Bond Trusts — 41.9%

  

  

     79,252,691   

Total Long-Term Investments

(Cost — $251,411,966) — 151.0%

  

  

     285,913,107   
    
   
Short-Term Securities    Shares         

FFI Institutional Tax-Exempt Fund, 0.03% (g)(h)

      1,283,932        1,283,932   

Total Short-Term Securities

(Cost — $1,283,932) — 0.7%

  

  

     1,283,932   

Total Investments

(Cost — $252,695,898*) — 151.7%

  

  

     287,197,039   
Other Assets Less Liabilities — 0.3%        712,050   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (23.0%)

   

     (43,576,217 ) 
VMTP Shares, at Liquidation Value — (29.0%)        (55,000,000 ) 
    

 

 

  

Net Assets Applicable to Common Shares — 100.0%

  

   $ 189,332,872   
    

 

 

  

 

*   As of January 31, 2015, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

   $ 209,936,313   
 

 

 

  

Gross unrealized appreciation

   $ 34,565,721   

Gross unrealized depreciation

     (873,054 ) 
 

 

 

  

Net unrealized appreciation

   $ 33,692,667   
 

 

 

  

 

Notes to Schedule of Investments

 

(a)   Zero-coupon bond.

 

                
8    BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2015   

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

 

(b)   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.

 

(c)   U.S. 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.

 

(d)   Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.

 

(e)   Represent bonds transferred to a TOB. In exchange for which the Fund received cash and residual interest certificates. These bonds serve as collateral in a financing transaction.

 

(f)   All or a portion of security is subject to a recourse agreement, which may require the Fund 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 Fund could ultimately be required to pay under the agreement, which expire from 10/01/2016 to 2/15/2031 is $8,457,544.

 

(g)   During the period ended January 31, 2015, investments in issuers considered to be an affiliate of the Fund 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,
2014

       

Net

Activity

       

Shares Held

at January 31,

2015

        Income  

FFI Institutional Tax-Exempt Fund

        944,029           339,903           1,283,932         $ 556   

 

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

 

Portfolio Abbreviations

 

AGC    Assured Guarantee Corp.
AGM    Assured Guaranty Municipal Corp.
AMT    Alternative Minimum Tax (subject to)
ARB    Airport Revenue Bonds
BARB    Building Aid Revenue Bonds
CAB    Capital Appreciation Bonds
COP    Certificates of Participation
EDA    Economic Development Authority
EDC    Economic Development Corp.
GARB    General Airport Revenue Bonds
GO    General Obligation Bonds
HFA    Housing Finance Agency
LRB    Lease Revenue Bonds
M/F    Multi-Family
NPFGC    National Public Finance Guarantee Corp.
RB    Revenue Bonds
S/F    Single-Family

 

Ÿ  

As of January 31, 2015, financial futures contracts outstanding were as follows:

 

Contracts
   Short		     Issue   Exchange   Expiration  

Notional

Value

    

Unrealized

Depreciation

  
  (233 )    10-Year U.S. Treasury Note   Chicago Board of Trade   March 2015   $ 30,493,875      $ (800,125 ) 

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2015    9

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. 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 fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. 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 is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows:

 

  Ÿ  

Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

 

  Ÿ  

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)

 

  Ÿ  

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 into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’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. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, please refer to the Fund’s most recent financial statements as contained in its semi-annual report.

As of January 31, 2015, the following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                 
Investments:                 

Long-Term Investments1

     —         $ 285,913,107         —      $ 285,913,107   

Short-Term Securities

   $ 1,283,932           —         —        1,283,932   
 

 

 

  

Total

   $ 1,283,932         $  285,913,107         —      $ 287,197,039   
 

 

 

  

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

      

     Level 1        Level 2        Level 3      Total  
Derivative Financial Instruments2             

Liabilities:

                 

Interest rate contracts

   $ (800,125 )         —         —      $ (800,125 ) 

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

      

 

 

                
10    BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2015   

Schedule of Investments (concluded)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of January 31, 2015, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                 

Cash pledged for financial futures contracts

   $    317,000           —         —      $ 317,000   

Liabilities:

                 

TOB trust certificates

     —         $ (43,568,059 )       —        (43,568,059 ) 

VMTP Shares

     —           (55,000,000 )       —        (55,000,000 ) 
 

 

 

  

Total

   $  317,000         $  (98,568,059 )       —      $  (98,251,059 ) 
 

 

 

  

During the period ended January 31, 2015, there were no transfers between levels.

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2015    11

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 25, 2015

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 25, 2015
By:

/s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniHoldings Fund II, Inc.
Date: March 25, 2015