BLACKROCK MUNICIPAL 2018 TERM TRUST

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: 811-10501

Name of Fund:   BlackRock Municipal 2018 Term Trust (BPK)

Fund Address:    100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Municipal

2018 Term Trust, 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 12/31/2016

Date of reporting period: 09/30/2016

Item 1 – Schedule of Investments

 

Schedule of Investments September 30, 2016 (Unaudited)

   

BlackRock Municipal 2018 Term Trust (BPK)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

Alabama — 2.9%

     

Alabama 21st Century Authority, Refunding RB, Series A, 5.00%, 6/01/18

    $ 500      $ 531,490   

Alabama Federal Aid Highway Finance Authority, RB, GAN, Garvee, 5.00%, 9/01/18

      6,000        6,457,860   
    

 

 

  
               6,989,350   

Alaska — 2.6%

     

City of Valdez Alaska, Refunding RB, 5.00%, 1/01/18

      6,000        6,265,680   

California — 6.3%

     

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

      2,500        2,794,400   

California Pollution Control Financing Authority, Refunding RB, Mandatory Put Bonds, Republic Services, Inc. Project, Series C, AMT, 5.25%, 6/01/23 (a)

      4,055        4,244,815   

Golden Empire Schools Financing Authority, Refunding RB, Kern High School District Projects, 1.33%, 5/01/17 (a)

      1,710        1,709,624   

Los Angeles Regional Airports Improvement Corp., Refunding RB, Facilities Lease, LAXFuel Corp., AMT:

     

5.00%, 1/01/17

      450        454,756   

5.00%, 1/01/18

      930        976,658   

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

      3,750        4,177,950   

Oakland Unified School District/Alameda County, GO, Refunding, 5.00%, 8/01/18

      1,000        1,074,930   
    

 

 

  
               15,433,133   

Colorado — 1.0%

     

Colorado Educational & Cultural Facilities Authority, Refunding RB, Peak to Peak Charter School, 4.00%, 8/15/18

      175        183,440   

Colorado Health Facilities Authority, Refunding RB, Evangelical Lutheran Good Samaritan Society Project:

     

4.00%, 12/01/17

      515        528,730   

4.00%, 12/01/18

      540        566,055   
Municipal Bonds   

Par  

(000)

     Value  

Colorado (continued)

     

Park Creek Metropolitan District Colorado, Refunding RB, Senior Limited Property Tax, 4.00%, 12/01/18

    $ 1,000      $ 1,055,940   
    

 

 

  
               2,334,165   

Delaware — 0.3%

     

Delaware State Economic Development Authority, RB, State University Project, 5.00%, 10/01/18

      735        790,412   

Florida — 5.1%

     

City of Miami Beach Florida, RB, 5.00%, 9/01/18

      875        941,308   

County of Broward Florida Airport System Revenue, Refunding RB, Series P-1, AMT, 5.00%, 10/01/18

      3,930        4,233,985   

County of Broward Florida School Board, COP, Series A (AGM), 5.25%, 7/01/18 (b)

      1,250        1,344,100   

County of Indian River Florida School Board, COP, Refunding, Series A, 5.00%, 7/01/18

      600        641,808   

County of Miami-Dade Florida, Refunding RB, Series A, AMT, 5.00%, 10/01/18

      2,000        2,156,580   

Miami Beach Health Facilities Authority, Refunding RB, Mount Sinai Medical Center, 4.00%, 11/15/18

      250        264,290   

Miami-Dade County School Board Foundation. Inc, COP, Refunding Series A, 5.00%, 5/01/18

      1,500        1,594,335   

Stevens Plantation Community Development District, Special Assessment Bonds, Series B, 6.38%, 5/01/13 (c)(d)

      1,920        1,343,213   
    

 

 

  
               12,519,619   

Guam — 0.3%

     

Guam Power Authority, Refunding RB, Series A (AGM), 5.00%, 10/01/19

      620        682,521   

Hawaii — 0.2%

     

Hawaii State Department of Budget & Finance, Refunding RB, Special Purpose Senior Living Revenue, 5.00%, 11/15/18

      370        393,210   
 

 

 

                
   BLACKROCK MUNICIPAL 2018 TERM TRUST    SEPTEMBER 30, 2016    1

Schedule of Investments (continued)

   

BlackRock Municipal 2018 Term Trust (BPK)

 

Municipal Bonds   

Par  

(000)

     Value  

Illinois — 6.6%

  

Chicago Transit Authority, Refunding RB, 5.00%, 6/01/18

    $ 1,000      $ 1,056,250   

Counties of Du Page & Will Illinois Community School District No 204 Indian Prairie, GO, Refunding Series B, 3.00%, 12/30/18

      1,935        2,012,961   

Fox Valley Park District, GO, Series A, 5.00%, 12/15/18

      1,725        1,876,231   

Illinois Finance Authority, Refunding RB:

     

University Medical Center Rush, Series A, 5.00%, 11/15/18

      1,000        1,080,470   

Central DuPage Health, Series B, 5.00%, 11/01/18

      2,290        2,465,918   

Peoples Gas Light and Coke Co. Project, Series B, 1.88%, 2/01/33 (a)

      1,000        1,017,480   

Railsplitter Tobacco Settlement Authority, RB, 5.00%, 6/01/18

      1,290        1,369,206   

State of Illinois, GO (AGM), 5.00%, 4/01/18

      465        480,526   

State of Illinois, RB, Build Illinois, Series B:

     

5.00%, 6/15/18 (e)

      355        379,647   

Unrefunded Balance, 5.00%, 6/15/18

      1,645        1,756,449   

State of Illinois, GO, Refunding, 5.00%, 8/01/18

      2,500        2,639,500   
    

 

 

  
               16,134,638   

Indiana — 2.1%

  

Indiana Finance Authority, RB, Ohio River Bridges East End Crossing Project, Series B, AMT, 5.00%, 1/01/19

      1,715        1,734,482   

Indiana State Municipal Power Agency, Refunding RB, Series A, 5.00%, 1/01/19

      875        955,019   

Indianapolis Airport Authority, Refunding RB, Special Facilities, FedEx Corp. Project, AMT, 5.10%, 1/15/17 (e)

      2,500        2,530,175   
    

 

 

  
               5,219,676   

Iowa — 1.1%

  

Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.00%, 12/01/19

      1,850        1,914,103   
Municipal Bonds   

Par  

(000)

     Value  

Iowa (continued)

     

University of Iowa, Refunding RB, Series S, 5.00%, 11/01/18

    $ 655      $ 709,751   
    

 

 

  
               2,623,854   

Kansas — 1.1%

  

Kansas Development Finance Authority, Refunding RB, Adventist Health, 5.00%, 11/15/18

      2,500        2,706,950   

Kentucky — 2.1%

  

County of Kenton Kentucky School District Finance Corp., Refunding RB, 2.50%, 6/01/18

      3,210        3,281,519   

County of Louisville & Jefferson Kentucky Metropolitan Government, Refunding RB, Catholic Health Initiatives, Series A, 5.00%, 12/01/18

      1,755        1,887,151   
    

 

 

  
               5,168,670   

Maryland — 3.6%

  

Maryland Health & Higher Educational Facilities Authority, Refunding RB:

     

Charlestown Community, 5.00%, 1/01/19

      1,685        1,831,578   

Meritas Medical Center, 5.00%, 7/01/18

      400        427,144   

University of Maryland Medical System, 5.00%, 7/01/18

      1,000        1,068,770   

Maryland State Transportation Authority, Refunding RB, Baltimore/Washington Thurgood Marshall Airport Project, Series B, AMT, 5.00%, 3/01/19

      5,000        5,465,950   
    

 

 

  
               8,793,442   

Michigan — 3.9%

  

Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital (AGM), 5.00%, 5/15/18

      2,025        2,147,755   

Michigan State Finance Authority, Refunding RB, AMT:

     

5.00%, 11/01/17

      2,275        2,350,257   

5.00%, 11/01/18

      2,100        2,230,704   

Michigan State Hospital Finance Authority, Refunding RB, Oakwood Obligation Group, Series A, 5.00%, 7/15/17 (b)

      1,000        1,033,220   
 

 

 

                
2    BLACKROCK MUNICIPAL 2018 TERM TRUST    SEPTEMBER 30, 2016   

Schedule of Investments (continued)

   

BlackRock Municipal 2018 Term Trust (BPK)

 

Municipal Bonds   

Par  

(000)

     Value  

Michigan (continued)

     

Michigan State Housing Development Authority, Refunding RB, Series B, 4.15%, 4/01/18

    $ 1,000      $ 1,039,990   

Saginaw Valley State University, RB, Series A, 5.00%, 7/01/18

      600        640,608   
    

 

 

  
               9,442,534   

Mississippi — 0.4%

     

Mississippi Development Bank, Refunding RB, 5.00%, 3/01/18

      1,000        1,050,840   

Missouri — 0.8%

     

City of Kansas City Missouri, Refunding ARB, AMT, Series A, 5.00%, 9/01/18

      1,750        1,876,367   

Nebraska — 1.6%

     

Central Plains Energy Project, RB, Gas Project (Project No. 3), 5.00%, 9/01/17

      2,330        2,403,302   

Public Power Generation Agency, RB, Whelan Energy Center, Series 2-A (AGC), 5.00%, 1/01/17 (b)

      1,500        1,515,810   
    

 

 

  
               3,919,112   

Nevada — 3.9%

     

City of Las Vegas Nevada, Special Assessment Bonds, Summerlin Area, 5.35%, 6/01/17

      450        452,457   

County of Clark Nevada, Refunding, Special Assessment Bonds, Improvement District No. 142, Mountain’s Edge, 4.00%, 8/01/18

      3,600        3,705,372   

Director of the State of Nevada Department of Business & Industry, RB, Mandatory Put Bonds, Republic Services, Inc. Project, AMT, 5.63%, 12/01/26 (a)

      5,120        5,427,098   
    

 

 

  
               9,584,927   

New Hampshire — 2.1%

     

New Hampshire State Turnpike System, RB, Series A, 5.00%, 10/01/18

      4,740        5,121,902   

New Jersey — 13.8%

     

County of Atlantic New Jersey, Refunding, 3.00%, 10/01/18

      1,855        1,918,997   

New Jersey EDA, Refunding RB:

     

Cigarette Tax Revenue, 5.00%, 6/15/18

      5,000        5,246,150   
Municipal Bonds   

Par  

(000)

     Value  

New Jersey (continued)

     

New Jersey EDA, Refunding RB (continued):

     

Lions gate Project, 3.25%, 1/01/18

    $ 250      $ 253,128   

New Jersey Educational Facilities Authority, RB, Seton Hall University, Series D, 5.00%, 7/01/18

      320        341,715   

New Jersey Educational Facilities Authority, Refunding RB, University of Medicine & Dentistry, Series B, 6.25%, 12/01/18 (e)

      2,500        2,783,900   

New Jersey Health Care Facilities Financing Authority, Refunding RB:

     

AHS Hospital Corp., 5.00%, 7/01/18

      850        909,067   

AtlantiCare Regional Medical Center, 5.00%, 7/01/17 (b)

      1,500        1,546,590   

Barnabas Health, Series A, 5.00%, 7/01/18 (e)

      2,000        2,143,340   

Princeton HealthCare System, 5.00%, 7/01/18

      1,620        1,727,017   

New Jersey Higher Education Student Assistance Authority, RB, Series 1A, AMT:

     

5.00%, 12/01/17

      460        478,630   

5.00%, 12/01/18

      2,000        2,138,980   

New Jersey State Housing & Mortgage Finance Agency, Refunding RB, S/F Housing, Series T, AMT, 4.55%, 10/01/22

      1,660        1,680,982   

New Jersey State Turnpike Authority, Refunding RB, Series G, 5.00%, 1/01/18

      1,350        1,417,392   

New Jersey Transportation Trust Fund Authority, RB:

     

Series B, 5.00%, 6/15/18

      2,000        2,120,500   

Transportation Program, Series AA, 5.00%, 6/15/18

      2,000        2,120,500   

Transportation System, Series A, 5.75%, 6/15/18

      1,320        1,416,175   

Transportation System, Series A (AMBAC), 5.75%, 6/15/18

      2,070        2,222,311   

Newark Housing Authority, RB, South Ward Police Facility (AGC), 4.50%, 12/01/18

      2,785        2,878,047   
 

 

 

                
   BLACKROCK MUNICIPAL 2018 TERM TRUST    SEPTEMBER 30, 2016    3

Schedule of Investments (continued)

   

BlackRock Municipal 2018 Term Trust (BPK)

 

Municipal Bonds   

Par  

(000)

     Value  

New Jersey (continued)

     

South Jersey Transportation Authority LLC, Refunding RB, Series A, 5.00%, 11/01/20

    $ 200      $ 224,538   
    

 

 

  
               33,567,959   

New York — 5.2%

     

Metropolitan Transportation Authority, Refunding RB:

     

Series A, 5.00%, 11/15/18

      1,000        1,086,980   

Series F, 4.00%, 11/15/18

      200        212,888   

New York State Dormitory Authority, RB, General Purpose, Series A, 5.00%, 3/15/18

      6,500        6,895,005   

New York State Dormitory Authority, Refunding RB, Series A, 3.00%, 7/01/18

      440        456,188   

New York Transportation Development Corp., Refunding RB, American Airlines, Inc., AMT, 5.00%, 8/01/18

      1,500        1,583,625   

Port Authority of New York & New Jersey, ARB, JFK International Air Terminal LLC Project, 5.00%, 12/01/20

      1,200        1,361,820   

State of New York Dormitory Authority, Refunding RB, Orignal Regional Medical Center, 5.00%, 12/01/17 (f)

      1,000        1,044,700   
    

 

 

  
               12,641,206   

North Carolina — 0.9%

     

North Carolina HFA, Refunding RB, Series 28-A, AMT, 4.65%, 7/01/23

      2,170        2,183,345   

Pennsylvania — 12.9%

  

Altoona City Authority, Refunding RB, 5.25%, 11/01/18

      2,500        2,703,275   

Beaver County Industrial Development Authority, Refunding RB, Pollution Control, Series A, 2.70%, 4/01/35 (a)

      3,050        2,905,888   

Chester County Health & Education Facilities Authority, Refunding RB:

     

3.00%, 12/01/17

      585        592,535   

4.00%, 12/01/18

      805        834,471   

Cumberland County Municipal Authority, Refunding RB:

     

4.00%, 1/01/18

      1,380        1,427,527   

5.75%, 1/01/19 (e)

      2,135        2,362,847   

5.75%, 1/01/19

      240        264,024   
Municipal Bonds   

Par  

(000)

     Value  

Pennsylvania (continued)

     

Lancaster Industrial Development Authority, Refunding RB, Garden Spot Village Project, 5.00%, 5/01/17

    $ 1,175      $ 1,193,130   

Montgomery County Industrial Development Authority, Refunding RB, 5.00%, 1/15/18

      1,000        1,044,690   

Pennsylvania Economic Development Financing Authority, RB:

     

PA Bridges Finco LP, AMT, 5.00%, 12/31/18

      2,100        2,270,247   

University of Pennsylvania Medical Center, 5.00%, 3/15/18

      750        794,040   

Waste Management, Inc. Project, 1.55%, 12/01/33 (a)

      5,000        5,016,950   

Pennsylvania Economic Development Financing Authority, Refunding RB, Amtrak Project, Series A, AMT, 3.00%, 11/01/18

      1,000        1,026,860   

Pennsylvania Higher Educational Facilities Authority, RB, Shippensburg University Student Services, Inc., Student Housing Project:

     

4.00%, 10/01/17

      275        280,572   

4.00%, 10/01/18

      560        580,983   

Pennsylvania Higher Educational Facilities Authority, Refunding RB:

     

Drexel University, Series A, 5.00%, 5/01/18

      1,000        1,059,730   

University Propertise, Inc. Student Housing Project at East, 4.00%, 7/01/18

      315        328,510   

Pennsylvania IDA, Refunding RB, Economic Development, 5.00%, 7/01/18

      1,500        1,600,440   

Pennsylvania Turnpike Commission, RB, Sub-Series A (AGC), 5.00%, 6/01/19 (b)

      1,000        1,107,470   

Philadelphia Gas Works Co., Refunding RB, 4.00%, 8/01/18

      1,790        1,884,244   

State Public School Building Authority, RB, Community College of Allegheny County Project (AGM), 5.00%, 7/15/18

      900        958,050   
 

 

 

                
4    BLACKROCK MUNICIPAL 2018 TERM TRUST    SEPTEMBER 30, 2016   

Schedule of Investments (continued)

   

BlackRock Municipal 2018 Term Trust (BPK)

 

Municipal Bonds   

Par  

(000)

     Value  

Pennsylvania (continued)

     

West Chester Area School District, GO, Refunding, Series AA, 5.00%, 5/15/18

    $ 1,000      $ 1,067,420   
    

 

 

  
               31,303,903   

Rhode Island — 0.4%

     

Rhode Island Health & Educational Building Corp., Refunding RB, Hospital Financing Revenue, Lifespan Obligated Group Issue, 5.00%, 5/15/18

      1,040        1,103,045   

Tennessee — 1.2%

     

Metropolitan Gov’t Nashville & Davidson County Health & Educational Facs Bd, Refunding RB, Lipscomb University Project, Series A, 4.00%, 10/01/18

      260        273,621   

Tennessee Energy Acquisition Corp., RB:

     

Series A, 5.25%, 9/01/18

      1,040        1,114,121   

Series C, 5.00%, 2/01/18

      1,500        1,572,015   
    

 

 

  
               2,959,757   

Texas — 12.0%

     

Birdville ISD Texas, GO, Refunding, CAB (PSF-GTD), 0.00%, 2/15/18 (g)

      1,615        1,594,312   

Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 5.75%, 1/01/18 (e)

      750        795,008   

City of Dallas Texas, GO, Refunding, 5.00%, 2/15/18

      2,500        2,640,450   

City of Dallas Texas, Refunding RB, Civic Center Convention Complex (AGC), 5.00%, 8/15/21

      2,500        2,757,750   

City of Houston Texas, Refunding RB, Sub Lien, Series B, 5.00%, 7/01/18

      1,000        1,066,600   

Eagle Mountain & Saginaw Independent School District, GO, Refunding, 5.00%, 8/15/18

      150        161,451   

Houston ISD Public Facilities Authority, RB, 5.00%, 9/15/18

      5,000        5,391,950   

Lower Colorado River Authority, Refunding RB, LCRA Transmission, Series B, 5.00%, 5/15/18

      5,000        5,327,400   

New Hope Cultural Education Facilities Corp., RB, Stephenville LLC Tarleton State University Project, Series A:

     

4.00%, 4/01/17

      160        161,899   
Municipal Bonds   

Par  

(000)

     Value  

Texas (continued)

     

New Hope Cultural Education Facilities Corp., RB, Stephenville LLC Tarleton State University Project, Series A (continued):

     

4.00%, 4/01/18

    $ 685      $ 709,153   

4.00%, 4/01/20

      165        177,969   

North Texas Tollway Authority, Refunding RB, Series C, 5.00%, 1/01/19

      2,215        2,408,214   

Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, 5.00%, 11/15/18

      1,195        1,275,902   

Texas Municipal Gas Acquisition & Supply Corp. III, RB, 5.00%, 12/15/18

      4,360        4,683,250   
    

 

 

  
               29,151,308   

Virginia — 0.9%

     

City of Norfolk Virginia, Refunding RB, Water Revenue, 5.00%, 11/01/18

      1,230        1,333,886   

Virginia College Building Authority, Refunding RB, Series A, 5.00%, 7/01/18 (f)

      785        826,456   
    

 

 

  
               2,160,342   

Washington — 1.5%

     

Energy Northwest, Refunding RB, Wind Project Revenue, 5.00%, 7/01/18

      2,865        3,060,479   

Washington Health Care Facilities Authority, Refunding RB, Providence Health & Services, Series B, 5.00%, 10/01/18

      500        540,390   
    

 

 

  
               3,600,869   

Wisconsin — 1.0%

     

State of Wisconsin, Refunding RB, Series A:

     

5.00%, 5/01/18 (e)

      800        852,064   

5.00%, 5/01/18

      200        212,948   

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., 5.00%, 4/01/19

      1,265        1,388,768   
    

 

 

  
               2,453,780   
Total Municipal Bonds — 97.8%              238,176,516   
 

 

 

                
   BLACKROCK MUNICIPAL 2018 TERM TRUST    SEPTEMBER 30, 2016    5

Schedule of Investments (continued)

   

BlackRock Municipal 2018 Term Trust (BPK)

 

Municipal Bonds Transferred to

Tender Option Bond Trusts (h) — 2.2%

  

Par  

(000)

     Value  

Illinois — 2.2%

  

City of Chicago Illinois Waterworks Revenue, Refunding RB, 2nd Lien (AGM), 5.00%, 11/01/20 (a)

   $ 5,000      $ 5,339,200   

Total Long-Term Investments

(Cost — $239,098,184) — 100.0%

  

  

     243,515,716   
   
                 
Short-Term Securities   Shares         

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.63% (i)(j)

     1,213,820        1,213,820   

Total Short-Term Securities

(Cost — $1,213,820) — 0.5%

  

  

     1,213,820   
          Value  
Total Investments
(Cost — $240,312,004*) — 100.5%		   $ 244,729,536   
Other Assets Less Liabilities — 1.0%     2,445,464   
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (1.5)%     (3,760,988 ) 
   

 

 

  
Net Assets — 100.0%   $ 243,414,012   
   

 

 

  

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

      

Tax cost

   $ 236,585,642   
   

 

 

  

Gross unrealized appreciation

   $ 5,177,461   

Gross unrealized depreciation

     (783,567 ) 
   

 

 

  

Net unrealized appreciation

   $ 4,393,894   
   

 

 

  

 

 
Notes to Schedule of Investments

 

(a)   Variable rate security. Rate as of period end.

 

(b)   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.

 

(c)   Non-income producing security.

 

(d)   Issuer filed for bankruptcy and/or is in default.

 

(e)   Security is collateralized by municipal bonds or U.S. Treasury obligations.

 

(f)   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.

 

(g)   Zero-coupon bond.

 

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

 

(i)   During the period ended September 30, 2016, investments in issuers considered to be affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate  

Shares Held
at December 31,

2015

     Net
Activity		    

Shares Held
at September 30,

2016

    

Value at
September 30,

2016

     Income  
BlackRock Liquidity Funds, MuniCash, Institutional Class     —        1,213,820        1,213,820      $ 1,213,820      $ 1,917   
FFI Institutional Tax-Exempt Fund     69        (69 )      —        —        132   
Total         $ 1,213,820      $ 2,049   

 

(j)   Current yield as of period end.

 

 

                
6    BLACKROCK MUNICIPAL 2018 TERM TRUST    SEPTEMBER 30, 2016   

Schedule of Investments (continued)    BlackRock Municipal 2018 Term Trust (BPK)

 

 

Portfolio Abbreviations
AGC   Assured Guarantee Corp.
AGM   Assured Guaranty Municipal Corp.
AMBAC   American Municipal Bond Assurance Corp.
AMT   Alternative Minimum Tax (subject to)
ARB   Airport Revenue Bonds
CAB   Capital Appreciation Bonds
COP   Certificates of Participation
EDA   Economic Development Authority
GAN   Grant Anticipation Notes
GO   General Obligation Bonds
HFA   Housing Finance Agency
IDA   Industrial Development Authority
ISD   Independent School District
PSF-GTD   Permanent School Fund Guaranteed
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. These inputs to valuation methodologies 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 Trust 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 Trust’s own assumptions used in determining the fair value of investments)

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. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 Investments include equity or debt issued by privately-held companies. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or nontransferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation methodologies may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Trust’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 is based on the pricing transparency of the investments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments, refer to the Trust’s most recent financial statements as contained in its semi-annual report.

 

                
   BLACKROCK MUNICIPAL 2018 TERM TRUST    SEPTEMBER 30, 2016    7

Schedule of Investments (continued)

   

BlackRock Municipal 2018 Term Trust (BPK)

 

The following table summarizes the Trust’s investments categorized in the disclosure hierarchy:

 

     Level 1     Level 2     Level 3     Total  

Assets:

 

Investments:

  

Long-Term Investments1

    —      $ 243,515,716        —      $ 243,515,716   

Short-Term Securities

   $ 1,213,820        —        —        1,213,820   
Total   $ 1,213,820      $ 243,515,716        —      $ 244,729,536   

 

1  

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

The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of period end, TOB Trust Certificates of $3,750,000 are categorized as Level 2 within the disclosure hierarchy.

During the period ended September 30, 2016, there were no transfers between levels.

 

 

                
8    BLACKROCK MUNICIPAL 2018 TERM TRUST    SEPTEMBER 30, 2016   

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 Municipal 2018 Term Trust

 

By:    

   /s/ John M. Perlowski                      
  John M. Perlowski
 

Chief Executive Officer (principal executive officer) of

BlackRock Municipal 2018 Term Trust

Date: November 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 Municipal 2018 Term Trust

Date: November 22, 2016

 

By:    

   /s/ Neal J. Andrews                          
  Neal J. Andrews
 

Chief Financial Officer (principal financial officer) of

BlackRock Municipal 2018 Term Trust

Date: November 22, 2016