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 811-08573

 

Name of Fund: BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniHoldings California Quality Fund, 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: 07/31/2012

 

Date of reporting period: 04/30/2012

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments April 30, 2012 (Unaudited)

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California — 103.0%

 

 

 

 

 

 

 

Corporate — 0.4%

 

 

 

 

 

 

 

City of Chula Vista California, Refunding
RB, San Diego Gas & Electric, Series
A, 5.88%, 2/15/34

 

$

2,435

 

$

2,808,285

 

County/City/Special District/School District — 26.5%

 

 

 

 

 

 

 

Centinela Valley Union High School
District, GO, Election of 2010, Series
A, 5.75%, 8/01/41

 

 

9,000

 

 

10,365,300

 

Chabot-Las Positas Community College
District, GO, CAB, Series C (AMBAC),
6.03%, 8/01/37 (a)

 

 

11,980

 

 

2,943,007

 

City of Garden Grove California, COP,
Series A, Financing Project (AMBAC),
5.50%, 3/01/26

 

 

4,040

 

 

4,095,186

 

Colton Joint Unified School District, GO,
Series A (NPFGC), 5.38%, 8/01/26

 

 

2,500

 

 

2,577,050

 

County of Kern California, COP, Capital
Improvements Projects, Series A
(AGC), 6.00%, 8/01/35

 

 

3,500

 

 

4,033,330

 

Covina-Valley Unified School District
California, GO, Refunding, Series A
(AGM), 5.50%, 8/01/12 (b)

 

 

2,395

 

 

2,450,971

 

Culver City Redevelopment Finance
Authority California, Tax Allocation
Bonds, Refunding, Series A (AGM),
5.60%, 11/01/25

 

 

3,750

 

 

3,762,675

 

Desert Community College District, GO,
CAB, Election of 2004, Series C
(AGM), 5.90%, 8/01/46 (a)

 

 

5,000

 

 

726,900

 

Grossmont Healthcare District, GO,
Election of 2006, Series B, 6.13%,
7/15/40

 

 

2,000

 

 

2,375,780

 

Grossmont Union High School District,
GO, CAB, Election of 2004, 5.46%,
8/01/32 (a)

 

 

10,000

 

 

3,507,900

 

Grossmont-Cuyamaca Community
College District, GO, Refunding, CAB,
Election of 2002, Series C (AGC),
5.20%, 8/01/30 (a)

 

 

11,225

 

 

4,488,878

 

Los Angeles Community Redevelopment
Agency California, RB, Bunker Hill
Project, Series A (AGM), 5.00%,
12/01/27

 

 

7,000

 

 

7,535,570

 

Merced Union High School District, GO,
CAB, Election of 2008, Series C (a):

 

 

 

 

 

 

 

6.61%, 8/01/33

 

 

2,500

 

 

790,750

 

6.41%, 8/01/36

 

 

4,100

 

 

1,079,694

 

7.07%, 8/01/41

 

 

5,000

 

 

764,450

 

Norwalk-La Mirada Unified School
District California, GO, CAB, Election
of 2002, Series E (AGC), 5.54%,
8/01/38 (a)

 

 

7,500

 

 

1,772,925

 

Orange County Sanitation District, COP,
Series A, 5.00%, 2/01/35

 

 

2,500

 

 

2,763,225

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

County/City/Special District/School District
(continued)

 

 

 

 

 

 

 

Oxnard Union High School District, GO,
Refunding, Election of 2004, Series A
(AGM), 5.00%, 8/01/35

 

$

10,000

 

$

10,901,900

 

Port of Oakland, Refunding RB, Series M
(NPFGC), 5.38%, 11/01/27

 

 

18,000

 

 

18,242,460

 

Redlands Unified School District
California, GO, Election of 2008
(AGM), 5.25%, 7/01/33

 

 

5,000

 

 

5,501,900

 

Rio Hondo Community College District,
GO, CAB, Election of 2004, Series C,
5.33%, 8/01/36 (a)

 

 

16,650

 

 

4,709,785

 

San Bernardino Community College
District, GO:

 

 

 

 

 

 

 

Election of 2002, Series A,
6.25%, 8/01/33

 

 

310

 

 

366,259

 

Election of 2008, Series B,
5.51%, 8/01/44 (a)

 

 

7,665

 

 

1,361,611

 

San Diego Regional Building Authority,
RB, County Operations Center &
Annex, Series A, 5.50%, 2/01/29

 

 

900

 

 

1,010,817

 

San Jose Financing Authority, RB, Civic
Center Project, Series B (AMBAC),
5.00%, 6/01/32

 

 

14,800

 

 

14,845,436

 

San Jose Financing Authority, RB,
Convention Center Expansion &
Renovation Project:

 

 

 

 

 

 

 

5.75%, 5/01/36

 

 

2,560

 

 

2,803,891

 

5.75%, 5/01/42

 

 

4,500

 

 

5,115,960

 

San Marcos Unified School District, GO,
CAB, Election of 2010, Series B,
0.00% 8/01/47 (a)(c)

 

 

4,800

 

 

683,520

 

Snowline Joint Unified School District,
COP, Refunding, Refining Project
(AGC), 5.75%, 9/01/38

 

 

5,635

 

 

6,367,099

 

Ventura County Community College
District, GO, Election of 2002, Series
C, 5.50%, 8/01/33

 

 

5,000

 

 

5,853,150

 

Vista Unified School District California,
GO, Series A (AGM), 5.25%, 8/01/25

 

 

10,000

 

 

10,099,400

 

West Contra Costa County Unified
School District California, GO, Election
of 2005, Series A (AGM), 5.00%,
8/01/35

 

 

10,000

 

 

10,834,900

 

West Contra Costa Unified School
District California, GO:

 

 

 

 

 

 

 

Election of 2002, Series B (AGM),
5.00%, 8/01/32

 

 

6,690

 

 

6,714,619

 

Election of 2010, Series A,
5.25%, 8/01/41

 

 

5,390

 

 

5,937,139

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.

APRIL 30, 2012

1


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

County/City/Special District/School District
(concluded)

 

 

 

 

 

 

 

Westminster Redevelopment Agency
California, Tax Allocation Bonds,
Subordinate, Commercial
Redevelopment Project No. 1 (AGC),
6.25%, 11/01/39

 

$

4,300

 

$

5,110,894

 

 

 

 

 

 

 

172,494,331

 

Education — 8.2%

 

 

 

 

 

 

 

Anaheim City School District California,
GO, Election of 2010 (AGM), 6.25%,
8/01/40

 

 

3,750

 

 

4,488,337

 

California Municipal Finance Authority,
RB, Emerson College, 6.00%,
1/01/42

 

 

2,500

 

 

2,856,550

 

Gavilan Joint Community College
District, GO, Election of 2004, Series
D:

 

 

 

 

 

 

 

5.50%, 8/01/31

 

 

2,170

 

 

2,570,691

 

5.75%, 8/01/35

 

 

8,400

 

 

9,926,112

 

Riverside Community College District,
GO, Election of 2004, Series C (AGM),
5.00%, 8/01/32

 

 

8,750

 

 

9,723,262

 

San Diego Community College District,
GO, Election of 2006 (AGM), 5.00%,
8/01/30

 

 

8,000

 

 

8,841,440

 

San Jose Evergreen Community College
District, GO, Election of 2010, Series
A, 5.00%, 8/01/41

 

 

5,975

 

 

6,610,919

 

University of California, RB, Series L,
5.00%, 5/15/36

 

 

3,030

 

 

3,312,245

 

University of California, Refunding RB,
General, Series A (AMBAC), 5.00%,
5/15/27

 

 

5,000

 

 

5,204,050

 

 

 

 

 

 

 

53,533,606

 

Health — 13.2%

 

 

 

 

 

 

 

ABAG Finance Authority for Nonprofit
Corps, Refunding RB, Sharp
Healthcare:

 

 

 

 

 

 

 

6.25%, 8/01/39

 

 

5,000

 

 

5,793,900

 

Series A, 6.00%, 8/01/30

 

 

2,250

 

 

2,693,160

 

California Health Facilities Financing
Authority, RB:

 

 

 

 

 

 

 

Adventist Health System,
Series A, 5.00%, 3/01/33

 

 

3,190

 

 

3,208,215

 

Kaiser Permanente, Series A,
5.25%, 4/01/39

 

 

6,550

 

 

6,819,926

 

Providence Health Services,
Series B, 5.50%, 10/01/39

 

 

4,000

 

 

4,477,080

 

Sutter Health, Series A, 5.25%,
11/15/46

 

 

19,000

 

 

19,943,350

 

California Health Facilities Financing
Authority, Refunding RB:

 

 

 

 

 

 

 

Catholic Healthcare West,
Series A, 6.00%, 7/01/34

 

 

3,700

 

 

4,286,894

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

Health (concluded)

 

 

 

 

 

 

 

California Health Facilities Financing
Authority, Refunding RB (concluded):

 

 

 

 

 

 

 

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

 

$

9,655

 

$

11,317,881

 

California Statewide Communities
Development Authority, RB:

 

 

 

 

 

 

 

Health Facility Memorial
Health Services, Series A,
6.00%, 4/01/13 (b)

 

 

4,915

 

 

5,172,988

 

Kaiser Permanente, Series A,
5.00%, 4/01/42

 

 

10,500

 

 

11,201,715

 

Kaiser Permanente, Series B,
5.25%, 3/01/45

 

 

6,100

 

 

6,361,751

 

City of Newport Beach California, RB,
Hoag Memorial Hospital Presbyterian,
6.00%, 12/01/40

 

 

3,820

 

 

4,578,117

 

 

 

 

 

 

 

85,854,977

 

State — 9.1%

 

 

 

 

 

 

 

California State Public Works Board, RB,
Department of Education, Riverside
Campus Project, Series B, 6.50%,
4/01/34

 

 

3,670

 

 

4,277,532

 

California State Public Works Board, RB,
California State Prisons, Series C,
5.75%, 10/01/31

 

 

1,205

 

 

1,358,011

 

State of California, GO:

 

 

 

 

 

 

 

6.00%, 3/01/33

 

 

5,800

 

 

6,899,738

 

6.00%, 4/01/38

 

 

28,265

 

 

32,592,089

 

University of California, RB, Limited
Project, Series D (NPFGC), 5.00%,
5/15/41

 

 

13,000

 

 

13,959,270

 

 

 

 

 

 

 

59,086,640

 

Transportation — 14.6%

 

 

 

 

 

 

 

City of Fresno California, RB, Series B,
AMT (AGM), 5.50%, 7/01/20

 

 

4,455

 

 

4,562,989

 

City of San Jose California, RB:

 

 

 

 

 

 

 

Series A-1, AMT, 6.25%,
3/01/34

 

 

1,400

 

 

1,603,266

 

Series A-1, AMT, 5.25%,
3/01/23

 

 

2,985

 

 

3,355,289

 

County of Orange California, RB, Series
B, 5.75%, 7/01/34

 

 

6,345

 

 

7,084,319

 

County of Sacramento California Airport
System, RB:

 

 

 

 

 

 

 

Senior Series A (AGC), 5.50%,
7/01/41

 

 

7,275

 

 

7,911,562

 

Senior Series B, 5.75%,
7/01/39

 

 

2,650

 

 

2,922,473

 

Senior Series B, AMT (AGM), 5.75%,
7/01/28

 

 

13,275

 

 

14,732,197

 

Senior Series B, AMT (AGM), 5.25%,
7/01/33

 

 

19,525

 

 

20,693,181

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.

APRIL 30, 2012

2


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

Transportation (concluded)

 

 

 

 

 

 

 

Los Angeles Department of Airports, RB,
Los Angeles International Airport,
Senior Series D, 5.25%, 5/15/29

 

$

2,590

 

$

2,967,752

 

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

 

 

2,775

 

 

3,057,523

 

Los Angeles Harbor Department, RB,
Series B, 5.25%, 8/01/34

 

 

5,530

 

 

6,220,199

 

San Francisco City & County Airports
Commission, RB, Series E, 6.00%,
5/01/39

 

 

9,650

 

 

11,149,803

 

San Francisco City & County Airports
Commission, Refunding RB, Second
Series 34E, AMT (AGM), 5.75%,
5/01/24

 

 

5,000

 

 

5,725,700

 

San Joaquin County Transportation
Authority, RB, Limited Tax, Measure K,
Series A, 6.00%, 3/01/36

 

 

2,400

 

 

2,878,776

 

 

 

 

 

 

 

94,865,029

 

Utilities — 31.0%

 

 

 

 

 

 

 

Anaheim Public Financing Authority, RB,
Electric System Distribution Facilities,
Series A, 5.38%, 10/01/36

 

 

2,200

 

 

2,515,436

 

City of Escondido California, COP,
Refunding, Series A (NPFGC), 5.75%,
9/01/24

 

 

465

 

 

465,284

 

City of Los Angeles California, Refunding
RB, Sub-Series A:

 

 

 

 

 

 

 

5.00%, 6/01/28

 

 

2,000

 

 

2,279,100

 

5.00%, 6/01/32

 

 

3,000

 

 

3,372,870

 

Dublin-San Ramon Services District,
Refunding RB, 6.00%, 8/01/41

 

 

4,000

 

 

4,758,040

 

East Bay Municipal Utility District,
Refunding RB, Sub-Series A:

 

 

 

 

 

 

 

(AGM), 5.00%, 6/01/37

 

 

11,190

 

 

12,348,053

 

(AMBAC), 5.00%, 6/01/33

 

 

5,000

 

 

5,615,800

 

Eastern Municipal Water District, COP,
Series H, 5.00%, 7/01/33

 

 

2,500

 

 

2,710,675

 

Imperial Irrigation District, Refunding
RB, System, 5.13%, 11/01/38

 

 

9,500

 

 

10,174,025

 

Los Angeles Department of Water &
Power, RB, Series A, 5.38%, 7/01/38

 

 

10,500

 

 

11,740,995

 

Los Angeles Department of Water &
Power, Refunding RB, System, Series
A, 5.25%, 7/01/39

 

 

16,000

 

 

18,154,240

 

Metropolitan Water District of Southern
California, RB, Series B-1 (NPFGC),
5.00%, 10/01/13 (b)

 

 

8,605

 

 

9,178,695

 

Orange County Sanitation District,
Refunding RB, Series A, 4.00%,
2/01/33

 

 

25,000

 

 

26,706,500

 

Oxnard Financing Authority, RB,
Redwood Trunk Sewer & Headworks,
Series A (NPFGC), 5.25%, 6/01/34

 

 

3,000

 

 

3,096,090

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

Utilities (concluded)

 

 

 

 

 

 

 

Sacramento Municipal Utility District,
RB, Series R (NPFGC), 5.00%,
8/15/33

 

$

17,500

 

$

18,183,375

 

San Diego County Water Authority, COP,
Series A (NPFGC), 5.00%, 5/01/12 (b)

 

 

6,505

 

 

6,570,896

 

San Diego County Water Authority, COP,
Refunding, Series A (NPFGC), 5.00%,
5/01/32

 

 

3,495

 

 

3,534,598

 

San Diego Public Facilities Financing
Authority, Refunding RB, Senior Series
A:

 

 

 

 

 

 

 

5.25%, 5/15/34

 

 

1,000

 

 

1,129,660

 

5.25%, 5/15/39

 

 

12,815

 

 

14,347,930

 

San Francisco City & County Public
Utilities Commission, RB:

 

 

 

 

 

 

 

Local Water Main Sub-Series
C, 5.00%, 11/01/41

 

 

5,000

 

 

5,499,950

 

Series A (NPFGC), 5.00%,
11/01/12 (b)

 

 

15,000

 

 

15,228,300

 

Series B, 5.00%, 11/01/30

 

 

14,000

 

 

15,848,560

 

San Juan Water District, Refunding RB,
San Juan & Citrus Heights, 5.25%,
2/01/33 (c)

 

 

7,325

 

 

8,382,584

 

 

 

 

 

 

 

201,841,656

 

Total Municipal Bonds in California

 

 

 

 

 

670,484,524

 

 

 

 

 

 

 

 

 

Puerto Rico — 0.3%

 

 

 

 

 

 

 

County/City/Special District/School District — 0.3%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
RB, Series C, 6.22%, 8/01/39 (a)

 

 

8,750

 

 

1,937,163

 

Total Municipal Bonds in Puerto Rico

 

 

 

 

 

1,937,163

 

Total Municipal Bonds – 103.3%

 

 

 

 

 

672,421,687

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

California — 61.8%

 

 

 

 

 

 

 

County/City/Special District/School District — 33.1%

 

 

 

 

 

 

 

Alameda County Joint Powers Authority,
Refunding RB, Lease (AGM), 5.00%,
12/01/34

 

 

13,180

 

 

14,133,310

 

Contra Costa Community College District
California, GO, Election of 2002
(NPFGC), 5.00%, 8/01/28

 

 

7,800

 

 

8,277,204

 

Desert Community College District
California, GO, Series C (AGM), 5.00%,
8/01/37

 

 

16,530

 

 

17,603,293

 

Foothill-De Anza Community College
District, GO, Series C, 5.00%,
8/01/40

 

 

10,000

 

 

11,193,100

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.

APRIL 30, 2012

3


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

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

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

County/City/Special District/School District
(concluded)

 

 

 

 

 

 

 

Los Angeles Community College District
California, GO:

 

 

 

 

 

 

 

Election of 2001, Series A (NPFGC),
5.00%, 8/01/32

 

$

6,647

 

$

7,464,811

 

Election of 2001, Series E-1,
5.00%, 8/01/33

 

 

11,770

 

 

12,961,477

 

Election of 2003, Series E (AGM),
5.00%, 8/01/31

 

 

11,216

 

 

12,361,093

 

Election of 2003, Series F-1,
5.00%, 8/01/33

 

 

10,000

 

 

11,012,300

 

Election of 2008, Series A,
6.00%, 8/01/33

 

 

9,596

 

 

11,349,230

 

Los Angeles County Metropolitan
Transportation Authority, Refunding
RB, Proposition A, First Tier, Senior
Series A (AMBAC), 5.00%, 7/01/35

 

 

8,997

 

 

9,891,711

 

Los Angeles County Sanitation Districts
Financing Authority, Refunding RB,
Capital Project 14 (BHAC), 5.00%,
10/01/34

 

 

7,917

 

 

8,542,100

 

Ohlone Community College District, GO,
Series B (AGM), 5.00%, 8/01/30

 

 

16,518

 

 

17,773,505

 

Poway Unified School District, GO,
Election of 2002, Improvement
District 02, Series 1-B (AGM), 5.00%,
8/01/30

 

 

10,000

 

 

10,759,400

 

San Bernardino Community College
District California, GO, Election of
2002, Series C (AGM), 5.00%,
8/01/31

 

 

17,770

 

 

19,730,031

 

San Diego Community College District
California, GO, Election of 2002
(AGM), 5.00%, 5/01/15 (b)

 

 

12,549

 

 

14,281,091

 

San Francisco Bay Area Rapid Transit
District, Refunding RB, Series A
(NPFGC), 5.00%, 7/01/30

 

 

23,100

 

 

25,321,758

 

San Francisco Bay Area Transit
Financing Authority, Refunding RB,
Series A (NPFGC), 5.00%, 7/01/34

 

 

2,499

 

 

2,739,696

 

 

 

 

 

 

 

215,395,110

 

Education — 11.8%

 

 

 

 

 

 

 

Chaffey Community College District, GO,
Election of 2002, Series B (NPFGC),
5.00%, 6/01/30

 

 

9,905

 

 

10,654,177

 

Los Rios Community College District,
GO, Election of 2008, Series A,
5.00%, 8/01/35

 

 

11,000

 

 

12,198,230

 

Mount Diablo California Unified School
District, GO, 5.00%, 6/01/31

 

 

4,000

 

 

4,303,320

 

Riverside Community College District,
GO, Election of 2004, Series C
(NPFGC), 5.00%, 8/01/32

 

 

8,910

 

 

9,901,059

 

 

 

 

 

 

 

 

 

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

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

Education (concluded)

 

 

 

 

 

 

 

University of California, RB:

 

 

 

 

 

 

 

Limited Project, Series B (AGM),
5.00%, 5/15/33

 

$

17,397

 

$

18,117,515

 

Limited Project, Series D (AGM),
5.00%, 5/15/41

 

 

8,000

 

 

8,590,320

 

Series O, 5.75%, 5/15/34

 

 

11,190

 

 

12,983,757

 

 

 

 

 

 

 

76,748,378

 

Transportation — 2.5%

 

 

 

 

 

 

 

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

 

 

4,999

 

 

5,429,485

 

San Mateo County Transportation
Authority, Refunding RB, Series A
(NPFGC), 5.00%, 6/01/32

 

 

10,000

 

 

10,871,400

 

 

 

 

 

 

 

16,300,885

 

Utilities — 14.4%

 

 

 

 

 

 

 

City of Napa California, RB (AMBAC),
5.00%, 5/01/35

 

 

9,100

 

 

9,717,162

 

East Bay Municipal Utility District, RB,
Sub-Series A (NPFGC), 5.00%,
6/01/35

 

 

12,070

 

 

13,266,258

 

East Bay Municipal Utility District,
Refunding RB, Sub-Series A (AMBAC),
5.00%, 6/01/37

 

 

14,510

 

 

15,870,603

 

Los Angeles Department of Water &
Power, RB, Power System, Sub-Series
A-2 (AGM), 5.00%, 7/01/35

 

 

7,500

 

 

8,206,725

 

Metropolitan Water District of Southern
California, RB, Series A (AGM), 5.00%,
7/01/35

 

 

12,870

 

 

14,170,642

 

Rancho Water District Financing
Authority, Refunding RB, Series A
(AGM), 5.00%, 8/01/34

 

 

5,008

 

 

5,432,593

 

Sacramento Regional County Sanitation
District, RB, Sacramento Regional
County Sanitation (NPFGC), 5.00%,
12/01/36

 

 

4,500

 

 

4,910,130

 

San Diego County Water Authority, COP,
Series A (AGM), 5.00%, 5/01/31

 

 

4,000

 

 

4,198,720

 

San Diego County Water Authority, COP,
Refunding, Series 2008-A (AGM),
5.00%, 5/01/33

 

 

16,740

 

 

18,259,155

 

 

 

 

 

 

 

94,031,988

 

Total Municipal Bonds Transferred to Tender Option
Bond (TOB) Trusts – 61.8%

 

 

 

 

 

402,476,361

 

Total Long-Term Investments
(Cost – $1,004,785,992) – 165.1%

 

 

 

 

 

1,074,898,048

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.

APRIL 30, 2012

4


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Short-Term Securities

 

Par
(000)

 

Value

 

California Health Facilities Financing
Authority, RB, VRDN, Hospital
Adventist Health System, Series B
(Wells Fargo Bank NA LOC), 0.22%,
4/30/12 (e)

 

$

1,700

 

$

1,700,000

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 

BIF California Municipal Money Fund,
0.00% (f)(g)

 

 

10,185,618

 

 

10,185,618

 

Total Short-Term Securities
(Cost – $11,885,618) – 1.9%

 

 

 

 

 

11,885,618

 

Total Investments (Cost - $1,016,671,610*) –
167.0%

 

 

 

 

 

1,086,783,666

 

Other Assets Less Liabilities – 1.9%

 

 

 

 

 

12,336,127

 

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable – (29.9)%

 

 

 

 

 

(194,249,852

)

VMTP Shares, at Liquidation Value – (39.0)%

 

 

 

 

 

(254,000,000

)

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

650,869,941

 

 

 

*

As of April 30, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


 

 

 

 

 

Tax cost

 

$

821,975,188

 

Gross unrealized appreciation

 

$

70,679,494

 

Gross unrealized depreciation

 

 

(14,971

)

Net unrealized appreciation

 

$

70,664,523

 

 

 

(a)

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

 

 

(b)

US 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)

When-issued security. Unsettled when-issued transactions were as follows:


 

 

 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Appreciation

 

 

Citigroup NA

 

$

8,382,584

 

$

107,165

 

 

Stifel Nicolaus & Co.

 

$

683,520

 

$

16,272

 

 

 

(d)

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

 

 

(e)

Variable rate security. Rate shown is as of report date.

 

 

(f)

Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
Held at
July 31, 2011

 

Net
Activity

 

Shares
Held at
April 30, 2012

 

Income

 

BIF California
Municipal
Money Fund

 

 

7,347,551

 

 

2,838,067

 

 

10,185,618

 

 

—

 

 

 

(g)

Represents the current yield as of report date.

 

 

•

For Fund compliance purposes, the Fund’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.


 

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

 

 

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

BHAC

Berkshire Hathaway Assurance Corp.

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

GO

General Obligation Bonds

LOC

Letter of Credit

NPFGC

National Public Finance Guarantee Corp.

RB

Revenue Bonds

VRDN

Variable Rate Demand Notes


 

 

•

Financial futures contracts sold as of April 30, 2012 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 

400

 

 

10-Year US
Treasury
Note

 

 

Chicago
Board of
Trade

 

 

June 2012

 

$

52,912,500

 

$

(796,073

)

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.

APRIL 30, 2012

5


 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

(Percentages shown are based on Net Assets)


 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

 

 

 

•

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

•

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

 

 

 

 

•

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

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment 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 and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the inputs used as of April 30, 2012 in determining the fair valuation of the Fund’s investments and derivative financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

—

 

$

1,074,898,048

 

 

—

 

$

1,074,898,048

 

Short-Term
Securities

 

$

10,185,618

 

 

1,700,000

 

 

—

 

 

11,885,618

 

Total

 

$

10,185,618

 

$

1,076,598,048

 

 

—

 

$

1,086,783,666

 

 

 

1

See above Schedule of Investments for values in each sector.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Derivative Financial
Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate
contracts

 

$

(796,073

)

 

—

 

 

—

 

$

(796,073

)

 

 

2

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


Certain of the Fund’s assets and liabilities are held at carrying amount which approximates fair value. Such assets and liabilities are categorized within the disclosure hierarchy as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash pledged
as collateral
for financial
futures
contracts

 

$

528,000

 

 

—

 

 

—

 

$

528,000

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

TOB trust
certificates

 

 

—

 

$

(194,143,955

)

 

—

 

 

(194,143,955

)

VMTP Shares

 

 

—

 

 

(254,000,000

)

 

—

 

 

(254,000,000

)

Total

 

$

528,000

 

$

(448,143,955

)

 

—

 

$

(447,615,955

)

There were no transfers between levels during the period ended April 30, 2012.

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.

APRIL 30, 2012

6

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 California Quality Fund, Inc.

 

 

 

 By: /s/ John M. Perlowski

 

 

 

John M. Perlowski

 

 

Chief Executive Officer (principal executive officer) of

 

 

BlackRock MuniHoldings California Quality Fund, Inc.

 

 

 

Date: June 22, 2012

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

 

 By: /s/ John M. Perlowski

 

 

 

John M. Perlowski

 

 

Chief Executive Officer (principal executive officer) of

 

 

BlackRock MuniHoldings California Quality Fund, Inc.

 

 

 

Date: June 22, 2012

 

 

 

 By: /s/ Neal J. Andrews

 

 

 

Neal J. Andrews

 

 

Chief Financial Officer (principal financial officer) of

 

 

BlackRock MuniHoldings California Quality Fund, Inc.

 

 

 

 

Date: June 22, 2012