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: 04/30/2016

Date of reporting period: 01/31/2016

Item 1 – Schedule of Investments

Schedule of Investments January 31, 2016 (Unaudited)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

Alabama — 3.1%

     

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

    $ 3,450      $ 3,483,810   

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

      1,875        2,182,856   
    

 

 

  
               5,666,666   

Alaska — 0.8%

     

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

      1,660        1,402,849   

Arizona — 0.5%

     

Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/37

      810        972,203   

California — 15.3%

     

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

      2,000        1,865,660   

California Health Facilities Financing Authority, RB:

     

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

      1,110        1,274,802   

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

      1,585        1,911,906   

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

      445        521,576   

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

     

5.25%, 8/15/39

      80        90,387   

5.25%, 8/15/49

      195        219,443   

California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45 (b)

      730        797,343   

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

      1,090        1,200,973   

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

      400        450,144   
Municipal Bonds    Par  
(000)		     Value  

California (continued)

     

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

    $ 185      $ 230,445   

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

      2,525        1,695,335   

San Marino Unified School District, GO, Series A (NPFGC), 0.00%, 7/01/19 (a)

      2,070        1,991,009   

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

      3,520        3,598,250   

State of California, GO, Various Purposes:

     

6.00%, 3/01/33

      1,265        1,515,521   

6.50%, 4/01/33

      7,325        8,599,843   

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

     

Series I, 5.00%, 11/01/38

      405        470,079   

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

      600        721,266   

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

      1,130        1,130,260   
    

 

 

  
               28,284,242   

Colorado — 1.7%

     

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

      1,055        1,136,246   

County of Adams Colorado, COP, Refunding, 4.00%, 12/01/40

      430        447,750   

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

      510        585,990   

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

      920        1,053,630   
    

 

 

  
               3,223,616   

Delaware — 1.8%

     

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

      570        618,541   

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

      2,050        2,125,645   
 

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2016    1

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

Municipal Bonds    Par  
(000)		     Value  

Delaware (continued)

     

Delaware Transportation Authority, RB, 5.00%, 6/01/55

    $ 605      $ 683,420   
    

 

 

  
               3,427,606   

District of Columbia — 3.5%

     

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

     

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

      255        283,432   

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

      1,000        1,117,970   

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

      10,170        5,054,897   
    

 

 

  
               6,456,299   

Florida — 3.9%

     

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

      1,725        1,944,403   

County of Broward Florida Water & Sewer Utility, Refunding RB, Series A, 5.25%, 10/01/18 (c)

      545        609,909   

County of Collier Florida Health Facilities Authority, Refunding RB, Series A, 5.00%, 5/01/45

      700        784,721   

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

      695        226,598   

Mid-Bay Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21 (c)

      1,525        2,014,662   

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

      460        394,441   

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

      1,200        1,332,120   
    

 

 

  
               7,306,854   

Georgia — 1.2%

     

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

      270        321,983   

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

      420        472,903   
Municipal Bonds    Par  
(000)		     Value  

Georgia (continued)

     

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

    $ 740      $ 827,668   

Municipal Electric Authority of Georgia, RB, Plant Vogtle Units 3 & 4 Project, Series A, 5.00%, 7/01/60

      585        648,139   
    

 

 

  
               2,270,693   

Hawaii — 0.4%

     

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

      680        775,560   

Idaho — 1.1%

     

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

      2,000        2,004,360   

Illinois — 17.4%

     

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

     

Series A, 5.75%, 1/01/39

      2,500        2,919,450   

Series C, 6.50%, 1/01/41

      2,935        3,541,958   

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

      915        882,426   

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

      2,290        2,306,122   

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

      410        439,229   

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

      598        600,763   

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

      530        579,449   

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

      3,645        3,896,541   

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

      410        475,830   

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

      800        916,408   

Illinois State Toll Highway Authority, RB:

     

Senior, Series C, 5.00%, 1/01/36

      1,355        1,570,323   
 

 

                
2    BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2016   

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

Municipal Bonds    Par  
(000)		     Value  

Illinois (continued)

     

Illinois State Toll Highway Authority, RB (continued):

     

Senior, Series C, 5.00%, 1/01/37

    $ 1,450      $ 1,674,271   

Series A, 5.00%, 1/01/38

      1,165        1,308,097   

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

     

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

      9,555        2,265,395   

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

      2,230        2,368,305   

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

      1,260        1,308,548   

Railsplitter Tobacco Settlement Authority, RB:

     

5.50%, 6/01/23

      230        272,177   

6.00%, 6/01/28

      500        601,765   

State of Illinois, GO:

     

5.00%, 2/01/39

      810        852,541   

Series A, 5.00%, 4/01/38

      1,920        2,017,805   

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

      315        350,765   

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

     

5.00%, 4/01/39

      425        474,750   

5.00%, 4/01/44

      520        576,555   
    

 

 

  
               32,199,473   

Indiana — 4.7%

     

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

     

6.75%, 1/01/34

      415        508,242   

7.00%, 1/01/44

      1,000        1,232,510   

Indiana Finance Authority, RB, Series A:

     

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

      1,660        1,959,365   

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 1/01/51

      210        228,959   

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

      225        243,371   

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

      740        796,943   

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

      420        469,295   
Municipal Bonds    Par  
(000)		     Value  

Indiana (continued)

     

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

    $ 1,660      $ 1,889,545   

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

      565        641,416   

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

      640        719,443   
    

 

 

  
               8,689,089   

Iowa — 1.5%

     

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

     

5.00%, 12/01/19

      485        507,523   

5.25%, 12/01/25

      230        251,013   

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

      770        819,265   

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

      1,270        1,263,663   
    

 

 

  
               2,841,464   

Kansas — 0.7%

     

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

      1,105        1,274,474   

Kentucky — 0.6%

     

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

      520        585,021   

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

      635        480,263   
    

 

 

  
               1,065,284   

Louisiana — 3.3%

     

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

      420        473,987   
 

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2016    3

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

Municipal Bonds    Par  
(000)		     Value  

Louisiana (continued)

     

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

    $ 2,500      $ 2,703,750   

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

      310        330,181   

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

     

5.50%, 5/15/30

      510        573,597   

5.25%, 5/15/31

      435        488,109   

5.25%, 5/15/32

      555        629,931   

5.25%, 5/15/33

      600        669,774   

5.25%, 5/15/35

      255        285,620   
    

 

 

  
               6,154,949   

Maine — 0.1%

     

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

      150        165,863   

Maryland — 1.0%

     

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

      220        241,025   

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

      390        373,008   

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

      1,095        1,243,285   
    

 

 

  
               1,857,318   

Massachusetts — 1.9%

     

Massachusetts Development Finance Agency, Refunding RB:

     

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

      845        1,024,419   

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

      1,155        1,161,629   

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

      360        401,753   
Municipal Bonds    Par  
(000)		     Value  

Massachusetts (continued)

     

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

    $ 960      $ 1,010,976   
    

 

 

  
               3,598,777   

Michigan — 3.0%

     

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

      2,235        2,485,320   

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

      690        774,960   

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

      455        492,851   

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

      1,520        1,735,612   
    

 

 

  
               5,488,743   

Minnesota — 1.0%

     

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series A, 6.75%, 11/15/18 (c)

      1,540        1,787,801   

Missouri — 0.2%

     

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

      125        140,815   

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

      130        144,239   
    

 

 

  
               285,054   

New Hampshire — 1.0%

     

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

      1,530        1,762,560   

New Jersey — 6.1%

     

Casino Reinvestment Development Authority, Refunding RB:

     

5.25%, 11/01/39

      530        551,847   

5.25%, 11/01/44

      790        816,821   
 

 

                
4    BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2016   

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

Municipal Bonds    Par  
(000)		     Value  

New Jersey (continued)

     

County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 7/01/45 (b)

    $ 560      $ 581,885   

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

     

5.13%, 9/15/23

      1,040        1,153,630   

5.25%, 9/15/29

      990        1,087,000   

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

      1,125        1,314,281   

New Jersey State Turnpike Authority, RB, Series E, 5.00%, 1/01/45

      1,355        1,540,716   

New Jersey Transportation Trust Fund Authority, RB:

     

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

      1,810        1,904,753   

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

      1,025        1,109,040   

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

      1,235        1,321,302   
    

 

 

  
               11,381,275   

New York — 7.8%

     

City of New York New York Transitional Finance Authority, RB, Fiscal 2012, Sub-Series E-1, 5.00%, 2/01/42

      740        845,228   

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 6/01/41 (b)

      1,000        1,044,530   

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

      1,355        1,289,919   

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

      271        304,296   

Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/45

      1,020        992,389   

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

      1,050        1,180,599   

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

      1,255        1,482,142   

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

      1,270        1,443,038   

 

Municipal Bonds    Par  
(000)		     Value  

New York (continued)

     

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      $ 694,544   

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

      1,650        1,752,366   

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

      175        185,260   

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

      440        469,652   

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

     

6.00%, 12/01/36

      650        761,137   

6.00%, 12/01/42

      630        734,511   

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

      1,200        1,194,504   
    

 

 

  
               14,374,115   

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        785,913   

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

      305        350,366   
    

 

 

  
               1,136,279   

Ohio — 0.5%

     

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

      350        386,946   
 

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2016    5

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

Municipal Bonds    Par  
(000)		     Value  

Ohio (continued)

     

State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 6/30/53

    $ 420      $ 457,418   
    

 

 

  
               844,364   

Pennsylvania — 2.4%

     

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

      335        362,202   

Pennsylvania Economic Development Financing Authority, RB:

     

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

      1,830        2,088,433   

AMT, Pennsylvania Bridge Finco LP, 5.00%, 6/30/42

      440        484,273   

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

      800        834,936   

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

      585        658,768   
    

 

 

  
               4,428,612   

Rhode Island — 0.9%

     

Tobacco Settlement Financing Corp., Refunding RB, Series B:

     

4.50%, 6/01/45

      1,375        1,393,782   

5.00%, 6/01/50

      225        233,314   
    

 

 

  
               1,627,096   

South Carolina — 3.7%

     

South Carolina State Ports Authority, RB:

     

5.25%, 7/01/40

      1,650        1,860,210   

AMT, 5.25%, 7/01/55

      670        741,616   

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

      2,040        2,348,693   

 

Municipal Bonds    Par  
(000)		     Value  

South Carolina (continued)

     

State of South Carolina Public Service Authority, Refunding RB, Santee Cooper, Series E, 5.25%, 12/01/55

    $ 1,635      $ 1,855,316   
    

 

 

  
               6,805,835   

Tennessee — 2.3%

     

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

      720        810,029   

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

      845        847,171   

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

      2,500        2,546,525   
    

 

 

  
               4,203,725   

Texas — 5.3%

     

Central Texas Regional Mobility Authority, Refunding RB:

     

Senior Lien, 6.25%, 1/01/46

      1,070        1,238,075   

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

      180        198,443   

Central Texas Turnpike System, Refunding RB, Series C, 5.00%, 8/15/42

      310        345,290   

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

      320        359,398   

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

      535        589,281   

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        283,915   

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

      1,380        1,627,613   

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        876,074   

0.00%, 9/15/41

      1,395        459,346   
 

 

                
6    BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2016   

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

Municipal Bonds    Par  
(000)		     Value  

Texas (continued)

     

La Vernia Higher Education Finance Corp., RB, Kipp, Inc., Series A, 6.38%, 8/15/19 (c)

    $ 320      $ 379,626   

New Hope Cultural Education Facilities Corp., RB, Collegiate Housing Tarleton State University Project, 5.00%, 4/01/35

      145        156,496   

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

      1,015        420,860   

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        1,406,458   

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

      1,300        1,531,283   
    

 

 

  
               9,872,158   

Vermont — 0.0%

     

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

      80        81,298   

Virginia — 3.1%

     

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

      2,500        2,595,875   

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

     

5.25%, 1/01/32

      400        446,268   

6.00%, 1/01/37

      2,325        2,687,026   
    

 

 

  
               5,729,169   

Washington — 2.3%

     

Grant County Public Utility District No 2, Refunding RB, Series A:

     

5.00%, 1/01/41

      985        1,147,436   

5.00%, 1/01/43

      1,125        1,307,385   

Port of Seattle Washington, RB, Series C, AMT, 5.00%, 4/01/40

      390        434,647   
Municipal Bonds    Par  
(000)		     Value  

Washington (continued)

     

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

    $ 1,195      $ 1,416,231   
    

 

 

  
               4,305,699   

Wisconsin — 3.0%

     

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

      3,620        4,185,734   

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

      1,235        1,401,651   
    

 

 

  
               5,587,385   
Total Municipal Bonds – 107.7%              199,338,807   
    
                  
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        1,885,144   

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

      1,335        1,489,953   

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

      4,770        5,386,618   

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

      2,967        3,366,365   

Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/17 (c)

      1,170        1,248,928   

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

      553        633,489   
    

 

 

  
               14,010,497   

Colorado — 3.5%

     

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

     

Series C-3, 5.10%, 4/29/18

      1,870        1,974,814   
 

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2016    7

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

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

Colorado (continued)

     

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

     

Series C-7, 5.00%, 5/01/18

    $ 1,200      $ 1,269,696   

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

      1,080        1,218,218   

County of Adams Colorado, COP, Refunding, 4.00%, 12/01/45

      1,950        2,014,077   
    

 

 

  
               6,476,805   

Connecticut — 2.7%

     

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

     

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

      2,299        2,420,578   

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

      2,362        2,493,769   
    

 

 

  
               4,914,347   

Florida — 1.8%

     

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

      2,840        3,240,463   

Georgia — 1.0%

     

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

      1,649        1,810,108   

Massachusetts — 2.0%

     

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

      3,211        3,775,093   

New Hampshire — 0.6%

     

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

      1,019        1,156,592   

New York — 9.3%

     

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        924,196   

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

      3,299        3,669,822   

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

      810        942,967   

 

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

New York (continued)

     

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

    $ 5,400      $ 6,277,295   

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

      3,250        3,801,263   

Port Authority of New York & New Jersey, Refunding ARB, 194th Series, 5.25%, 10/15/55

      1,350        1,597,806   
    

 

 

  
               17,213,349   

North Carolina — 1.3%

     

North Carolina Capital Facilities Finance Agency, Refunding RB:

     

Duke University Project, Series B, 5.00%, 10/01/55

      1,320        1,538,962   

Wake Forest University, 5.00%, 1/01/38

      800        883,872   
    

 

 

  
               2,422,834   

Ohio — 4.2%

     

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

      6,974        7,868,958   

Texas — 5.0%

     

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

      1,260        1,416,467   

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

      3,363        3,745,087   

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

      1,710        1,986,285   

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

      1,801        2,102,999   
    

 

 

  
               9,250,838   

Utah — 0.8%

     

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

      1,395        1,527,059   

Virginia — 2.5%

     

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

      2,729        2,976,632   
 

 

                
8    BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2016   

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)		   

Par  

(000)

     Value  

Virginia (continued)

     

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

    $ 1,553      $ 1,731,673   
    

 

 

  
               4,708,305   

Washington — 0.8%

     

Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/17 (c)

      1,365        1,468,683   

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        3,109,200   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 44.8%		         82,953,131   
Total Long-Term Investments
(Cost — $252,462,085) — 152.5%		         282,291,938   
Short-Term Securities        
Shares		     Value  

BlackRock Liquidity Funds, MuniCash, 0.02% (g)(h)

      2,446,996      $ 2,446,996   
Total Short-Term Securities
(Cost — $2,446,996) — 1.3%		         2,446,996   

Total Investments

(Cost — $254,909,081*) — 153.8%

  

  

     284,738,934   
Other Assets Less Liabilities — 0.8%        1,515,250   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (24.9)%

   

     (46,108,750 ) 
VMTP Shares, at Liquidation Value — (29.7)%        (55,000,000 ) 
    

 

 

  
Net Assets Applicable to Common Shares — 100.0%      $ 185,145,434   
    

 

 

  

 

*   As of January 31, 2016, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

   $ 209,217,671   
 

 

 

  

Gross unrealized appreciation

   $ 30,022,780   

Gross unrealized depreciation

     (604,620 ) 
 

 

 

  

Net unrealized appreciation

   $ 29,418,160   
 

 

 

  
 
Notes to Schedule of Investments

 

(a)   Zero-coupon bond.

 

(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)   Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

 

(e)   Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing.

 

(f)   All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between October 1, 2016 to February 15, 2031, is $8,457,549.

 

(g)   During the period ended January 31, 2016, investments in issuers considered to be affiliates 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,
2015		        Net
Activity		        Shares Held
at January 31,
2016		        Income  

BlackRock Liquidity Funds, MuniCash

        —           2,446,996           2,446,996           —   

FFI Institutional Tax-Exempt Fund

        681,480           (681,480 )         —         $ 399   

 

(h)   Current yield as of period end.

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2016    9

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

 

Derivative Financial Instruments Outstanding as of Period End

Financial Futures Contracts

 

Contracts
Short		     Issue   Expiration   Notional
Value		   Unrealized
Depreciation		  
  (21 )    5-Year U.S. Treasury Note   March 2016   $2,534,109   $ (36,031 ) 
  (20 )    10-Year U.S. Treasury Note   March 2016   $2,591,563     (56,682 ) 
  (11 )    Long U.S. Treasury Bond   March 2016   $1,771,344     (63,779 ) 
  (4 )    U.S. Ultra Treasury Bond   March 2016   $   664,750     (23,880 ) 
  Total            $ (180,372 ) 
       

 

 

  

 

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
IDA    Industrial Development Authority
LRB    Lease Revenue Bonds
NPFGC    National Public Finance Guarantee Corp.
RB    Revenue Bonds
S/F    Single-Family
 

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  •  

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

 

  •  

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

 

  •  

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

 

                
10    BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2016   

Schedule of Investments (concluded)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

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 significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments are typically categorized as Level 3.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Fund’s most recent financial statements as contained in its semi-annual report.

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

     —         $ 282,291,938           —         $ 282,291,938   

Short-Term Securities

   $ 2,446,996           —           —           2,446,996   
 

 

 

  

Total

   $ 2,446,996         $ 282,291,938           —         $ 284,738,934   
 

 

 

  

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

 

       

     Level 1        Level 2        Level 3        Total  
Derivative Financial Instruments1             

Liabilities:

                 

Interest rate contracts

   $ (180,372 )         —           —         $ (180,372 ) 

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

 

       

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of period end, 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

   $ 109,200           —           —         $ 109,200   

Liabilities:

                 

TOB Trust Certificates

     —         $ (46,103,103 )         —           (46,103,103 ) 

VMTP Shares

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

 

 

  

Total

   $ 109,200         $ (101,103,103 )         —         $ (100,993,903 ) 
 

 

 

  
During the period ended January 31, 2016, there were no transfers between levels.   

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2016    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 22, 2016

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 22, 2016

   

By:

   

/s/ Neal J. Andrews

   
   Neal J. Andrews   
   Chief Financial Officer (principal financial officer) of
   BlackRock MuniHoldings Fund II, Inc.

Date: March 22, 2016