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: 12/31/2017

Date of reporting period: 09/30/2017

Item 1 – Schedule of Investments

Schedule of Investments September 30, 2017 (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     $ 512,625  

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

      6,000       6,216,480  

Tuscaloosa City Board of Education, RB, Warrants, 4.00%, 8/01/18

      125       128,065  
    

 

 

  
               6,857,170  
Alaska — 2.5%             

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

      6,000       6,059,280  
California — 5.3%             

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

      2,500       2,688,100  

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       4,079,371  

Los Angeles Regional Airports Improvement Corp., Refunding RB, Facilities Lease, LAXFuel Corp., AMT, 5.00%, 1/01/18

      930       939,402  

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

      3,750       4,007,962  

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

      1,000       1,034,460  
    

 

 

  
               12,749,295  
Colorado — 2.4%             

Adams & Arapahoe Joint School District 28J Aurora, GO, Refunding Series A, 5.00%, 12/01/18

      2,150       2,250,147  

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

      175       179,062  

Colorado Health Facilities Authority, Refunding RB, Evangelical Lutheran Good Samaritan Society Project, 4.00%, 12/01/17

      515       517,477  
Municipal Bonds    Par
(000)		     Value  
Colorado (continued)             

Denver Urban Renewal Authority, Refunding, Tax Allocation Bonds, Series A-1, 5.00%, 12/01/18

    $ 1,675     $ 1,748,700  

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

      1,000       1,026,030  
    

 

 

  
               5,721,416  
Connecticut — 0.6%             

Connecticut State Health & Educational Facility Authority, RB, Fairfield University, Series N, 5.00%, 7/01/18

      1,500       1,543,530  
Delaware — 0.3%             

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

      735       762,908  
Florida — 5.1%             

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

      875       906,544  

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

      3,930       4,078,633  

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

      1,250       1,290,737  

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

      600       617,778  

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

      2,000       2,075,640  

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

      250       256,648  

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

      1,500       1,534,860  

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

      1,920       1,343,078  
    

 

 

  
               12,103,918  
Guam — 0.3%             

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

      620       662,712  
 

 

     
                
   BLACKROCK MUNICIPAL 2018 TERM TRUST    SEPTEMBER 30, 2017    1

Schedule of Investments (continued)

   

BlackRock Municipal 2018 Term Trust (BPK)

 

Municipal Bonds    Par
(000)		     Value  
Hawaii — 0.2%             

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

    $ 370     $ 384,134  
Illinois — 6.5%             

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

      1,000       1,024,440  

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

      1,935       1,976,951  

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

      1,725       1,806,403  

Illinois Finance Authority, Refunding RB:

     

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

      2,290       2,382,814  

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

      1,000       1,010,050  

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

      1,000       1,041,680  

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

      1,290       1,322,895  

State of Illinois, GO:

     

(AGM), 5.00%, 4/01/18

      465       466,302  

Refunding, 5.00%, 8/01/18

      2,500       2,563,175  

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

     

5.00%, 6/15/18 (e)

      355       365,220  

Unrefunded Balance, 5.00%, 6/15/18

      1,645       1,689,546  
    

 

 

  
               15,649,476  
Indiana — 0.4%             

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

      875       917,079  
Iowa — 0.3%             

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

      655       683,394  
Kansas — 1.1%             

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

      2,500       2,608,025  
Municipal Bonds    Par
(000)		     Value  
Kentucky — 2.1%             

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

    $ 3,210     $ 3,241,298  

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

      1,755       1,818,864  
    

 

 

  
               5,060,162  
Maryland — 3.5%  

Maryland Health & Higher Educational Facilities Authority, Refunding RB:

     

Charlestown Community, 5.00%, 1/01/19 (e)

      1,685       1,769,082  

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

      400       411,636  

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

      1,000       1,029,710  

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

      5,000       5,274,400  
    

 

 

  
               8,484,828  
Michigan — 4.0%  

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

      2,025       2,072,344  

Michigan State Building Authority, Refunding RB, Facilities Program Series, 6.00%, 10/15/18 (b)

      1,455       1,530,587  

Michigan State Finance Authority, Refunding RB, AMT:

     

5.00%, 11/01/17

      2,275       2,281,848  

5.00%, 11/01/18

      2,100       2,171,946  

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

      1,000       1,013,470  

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

      600       617,688  
    

 

 

  
               9,687,883  
Mississippi — 0.4%  

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

      1,000       1,016,250  
 

 

     
                
2    BLACKROCK MUNICIPAL 2018 TERM TRUST    SEPTEMBER 30, 2017   

Schedule of Investments (continued)

    BlackRock Municipal 2018 Term Trust (BPK)
    

 

Municipal Bonds    Par
(000)		     Value  
Missouri — 0.8%             

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

    $ 1,750     $ 1,811,285  
Nevada — 3.6%             

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

      3,345       3,372,027  

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       5,252,557  
    

 

 

  
               8,624,584  
New Hampshire — 2.1%             

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

      4,740       4,926,045  
New Jersey — 12.4%             

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

      1,855       1,889,113  

New Jersey EDA, Refunding RB, Cigarette Tax Revenue, 5.00%, 6/15/18

      5,000       5,111,150  

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

      320       329,162  

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

      2,500       2,655,525  

New Jersey Health Care Facilities Financing Authority, Refunding RB:

     

AHS Hospital Corp., 5.00%, 7/01/18

      850       874,922  

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

      2,000       2,061,580  

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

      1,620       1,664,518  

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

     

5.00%, 12/01/17

      460       462,967  

5.00%, 12/01/18

      2,000       2,078,300  
Municipal Bonds    Par
(000)		     Value  
New Jersey (continued)             

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

    $ 1,575     $ 1,578,071  

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

      1,350       1,363,865  

New Jersey Transportation Trust Fund Authority, RB:

     

Series B, 5.00%, 6/15/18

      2,000       2,049,280  

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

      2,000       2,049,280  

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

      1,320       1,359,494  

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

      2,070       2,122,930  

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

      1,895       1,930,815  

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

      200       218,866  
    

 

 

  
               29,799,838  
New York — 5.1%             

Metropolitan Transportation Authority, Refunding RB:

     

Series A, 5.00%, 11/15/18

      1,000       1,046,700  

Series F, 4.00%, 11/15/18

      200       206,842  

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

      6,500       6,622,915  

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

      1,500       1,538,535  

Port Authority of New York & New Jersey, ARB, JFK International Air Terminal LLC Project, Series 8, 5.00%, 12/01/20

      1,200       1,305,336  

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

      1,000       1,005,790  

TSASC, Inc., Refunding RB, Series A, 3.00%, 6/01/18

      500       505,430  
    

 

 

  
               12,231,548  
Oklahoma — 0.2%             

Norman Regional Hospital Authority, Refunding RB, 4.00%, 9/01/18

      420       429,862  
 

 

                
   BLACKROCK MUNICIPAL 2018 TERM TRUST    SEPTEMBER 30, 2017    3

Schedule of Investments (continued)

   

BlackRock Municipal 2018 Term Trust (BPK)

 

Municipal Bonds    Par
(000)		     Value  
Pennsylvania — 12.7%             

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

    $ 2,500     $ 2,604,725  

Chester County Health & Education Facilities Authority, Refunding RB:

     

3.00%, 12/01/17

      585       585,802  

4.00%, 12/01/18

      805       816,447  

Cumberland County Municipal Authority, Refunding RB:

     

4.00%, 1/01/18

      1,380       1,388,873  

5.75%, 1/01/19 (e)

      2,135       2,260,623  

5.75%, 1/01/19

      240       252,170  

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

      1,000       1,009,280  

Northampton County General Purpose Authority, RB, Series A, 5.38%, 8/15/18 (b)

      4,000       4,148,560  

Pennsylvania Economic Development Financing Authority, RB:

     

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

      2,100       2,196,747  

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

      750       764,010  

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

      5,000       4,997,700  

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

      1,000       1,017,770  

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

     

4.00%, 10/01/17

      140       140,014  

4.00%, 10/01/18

      560       568,792  

Pennsylvania Higher Educational Facilities Authority, Refunding RB:

     

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

      1,000       1,021,980  

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

      315       320,220  

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

      1,500       1,544,445  
Municipal Bonds    Par
(000)		     Value  
Pennsylvania (continued)             

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

    $ 1,000     $ 1,064,720  

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

      1,790       1,834,822  

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

      900       927,009  

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

      1,000       1,025,550  
    

 

 

  
               30,490,259  
Rhode Island — 1.1%             

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

      1,040       1,063,587  

Tobacco Settlement Financing Corp., Refunding RB, Series A, 4.00%, 6/01/18

      1,500       1,525,950  
    

 

 

  
               2,589,537  
Tennessee — 1.2%             

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

      260       265,884  

Tennessee Energy Acquisition Corp., RB:

     

Series A, 5.25%, 9/01/18

      1,040       1,079,385  

Series C, 5.00%, 2/01/18

      1,500       1,519,650  
    

 

 

  
               2,864,919  
Texas — 10.6%             

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

      1,615       1,609,234  

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

      750       759,210  

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

      2,500       2,668,775  

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

      1,000       1,029,630  

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

      5,000       5,191,750  
 

 

     
                
4    BLACKROCK MUNICIPAL 2018 TERM TRUST    SEPTEMBER 30, 2017   

Schedule of Investments (continued)

   

BlackRock Municipal 2018 Term Trust (BPK)

 

Municipal Bonds    Par
(000)		     Value  
Texas (continued)             

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

    $ 5,000     $ 5,124,350  

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

     

4.00%, 4/01/18

      685       692,535  

4.00%, 4/01/20

      165       174,103  

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

      2,215       2,322,671  

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

      1,195       1,232,308  

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

      4,360       4,561,781  
    

 

 

  
               25,366,347  
Virginia — 1.6%             

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

      1,230       1,283,222  

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

      785       802,011  

Virginia Port Authority, Refunding RB, Series B, AMT, 5.00%, 7/01/18

      1,790       1,842,071  
    

 

 

  
               3,927,304  
Washington — 1.4%             

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

      2,865       2,946,796  

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

      500       519,830  
    

 

 

  
               3,466,626  
Wisconsin — 1.0%             

State of Wisconsin, Refunding RB, Series A (e):

     

5.00%, 5/01/18

      800       819,152  

5.00%, 5/01/18

      200       204,788  
Municipal Bonds    Par
(000)		     Value  
Wisconsin (continued)             

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

    $ 1,265     $ 1,337,978  
    

 

 

  
               2,361,918  
Total Municipal Bonds — 91.7%       219,841,532  
    
                  
Municipal Bonds Transferred to
Tender Option Bond Trusts (h)		         
Illinois — 2.1%             

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

      5,000       5,200,700  
Total Long-Term Investments
(Cost — $223,226,497) — 93.8%		       225,042,232  
    
                  
Short-Term Securities               
Municipal Bonds — 4.2%             

Metropolitan Washington Airports Authority:

     

0.90%, 11/20/17

      4,500       4,500,000  

0.91%, 12/21/17

      5,500       5,500,000  
    

 

 

  
Total Municipal Bonds — 4.2%              10,000,000  
    
                  
Money Market Fund — 2.5%    Shares         

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.74% (i)(j)

      5,924,190       5,925,967  
Total Short-Term Securities
(Cost — $15,925,328) — 6.7%		              15,925,967  
 

 

     
                
   BLACKROCK MUNICIPAL 2018 TERM TRUST    SEPTEMBER 30, 2017    5

Schedule of Investments (continued)

   

BlackRock Municipal 2018 Term Trust (BPK)

 

           Value  

Total Investments(Cost — $239,151,825) — 100.5%

   $ 240,968,199  

Other Assets Less Liabilities — 1.1%

     2,581,582  

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (1.6)%

     (3,765,672 ) 
    

 

 

  

Net Assets Applicable to Common Shares — 100.0%

   $ 239,784,109  
    

 

 

  

    

 
  Notes to Schedule of Investments

 

(a)   Variable rate security. Rate shown is the rate in effect 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)   Annualized 7-day yield as of period end.

 

(j)   During the period ended September 30, 2017, investments in issuers considered to be affiliate 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,
2016		        Net
Activity		        Shares Held
at September 30,
2017		        Value at
September 30,
2017		        Income        Net Realized
Gain		        Change in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Liquidity Funds, MuniCash, Institutional Class

     784,632          5,139,558          5,924,190        $ 5,925,967        $ 29,107        $ 2,298        $ 640  

 

  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
IDA    Industrial Development Authority
ISD    Independent School District
PSF-GTD    Permanent School Fund Guaranteed
RB    Revenue Bonds
S/F    Single-Family
 

 

     
                
6    BLACKROCK MUNICIPAL 2018 TERM TRUST    SEPTEMBER 30, 2017   

Schedule of Investments (concluded)

   

BlackRock Municipal 2018 Term Trust (BPK)

 

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments. 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 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 BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or trusts. 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 non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques 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.

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

 

     Level 1        Level 2        Level 3     Total  

Assets:

              
Investments:              

Long-Term Investments

     —        $ 225,042,232          —     $ 225,042,232  

Short-Term Securities:

              

Municipal Bonds

     —          10,000,000          —       10,000,000  

Money Market Fund

   $ 5,925,967          —          —       5,925,967  
 

 

 

  

Total

   $ 5,925,967        $ 235,042,232          —     $ 240,968,199  
 

 

 

  

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, 2017, there were no transfers between levels.

 

     
                
   BLACKROCK MUNICIPAL 2018 TERM TRUST    SEPTEMBER 30, 2017    7

Item 2 – Controls and Procedures

 

2(a) –    The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b) –    There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3 – Exhibits

Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock 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 20, 2017

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 20, 2017

 

By:       /s/ Neal J. Andrews                
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock Municipal 2018 Term Trust

Date: November 20, 2017