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 811-09191

 

Name of Fund: BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

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

 

Date of reporting period: 04/30/2012

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments April 30, 2012 (Unaudited)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 3.2%

 

 

 

 

 

 

 

Birmingham Special Care Facilities
Financing Authority, RB, Children’s
Hospital (AGC), 6.00%, 6/01/39

 

$

5,225

 

$

5,952,529

 

County of Jefferson Alabama, RB, Series
A, 5.50%, 1/01/22

 

 

3,580

 

 

3,561,169

 

Selma Industrial Development Board, RB,
International Paper Co. Project, Series
A, 5.38%, 12/01/35

 

 

940

 

 

991,070

 

 

 

 

 

 

 

10,504,768

 

Arizona — 1.4%

 

 

 

 

 

 

 

Arizona State Board of Regents,
Refunding RB, University of Arizona
System, Series A:

 

 

 

 

 

 

 

5.00%, 7/01/29

 

 

2,340

 

 

2,700,875

 

5.00%, 6/01/42

 

 

1,705

 

 

1,894,664

 

 

 

 

 

 

 

4,595,539

 

California — 15.9%

 

 

 

 

 

 

 

California Educational Facilities Authority,
RB, University of Southern California,
Series A, 5.25%, 10/01/38

 

 

5,050

 

 

5,750,789

 

California Health Facilities Financing
Authority, RB:

 

 

 

 

 

 

 

Scripps Health, Series A,
5.00%, 11/15/40

 

 

415

 

 

445,258

 

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

 

 

2,865

 

 

3,358,439

 

California Statewide Communities
Development Authority, RB, Kaiser
Permanente, Series A, 5.00%, 4/01/42

 

 

2,345

 

 

2,501,716

 

City of San Jose California Airport,
Refunding RB, Series A-1, AMT, 5.50%,
3/01/30

 

 

4,045

 

 

4,438,983

 

City of Sunnyvale California, Refunding
RB, 5.25%, 4/01/40

 

 

2,800

 

 

3,148,656

 

County of Sacramento California Airport
System, RB, Senior Series A (AGC),
5.50%, 7/01/41

 

 

3,500

 

 

3,806,250

 

Emery Unified School District, GO,
Election of 2010, Series A (AGM),
5.50%, 8/01/35

 

 

1,875

 

 

2,112,244

 

Los Angeles Community College District
California, GO:

 

 

 

 

 

 

 

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

 

 

5,000

 

 

5,614,800

 

Election of 2008, Series C,
5.25%, 8/01/39

 

 

2,500

 

 

2,847,625

 

Oceanside Unified School District
California, GO, Series A (AGC), 5.25%,
8/01/33

 

 

3,175

 

 

3,497,548

 

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

 

 

2,220

 

 

2,249,903

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

Redondo Beach Unified School District,
GO, Election of 2008, Series E, 5.50%,
8/01/34

 

$

2,670

 

$

3,088,816

 

San Bernardino Community College
District, GO, Election of 2002, Series A,
6.25%, 8/01/33

 

 

2,165

 

 

2,557,904

 

San Francisco City & County Airports
Commission, RB, Specialty Facility
Lease, SFO Fuel, Series A, AMT (AGM),
6.10%, 1/01/20

 

 

1,250

 

 

1,253,488

 

State of California, GO, Refunding,
Veterans, Series BZ, AMT (NPFGC),
5.35%, 12/01/21

 

 

10

 

 

10,016

 

Stockton Public Financing Authority
California, RB, Redevelopment
Projects, Series A (Radian), 5.25%,
9/01/34

 

 

2,430

 

 

1,820,362

 

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

 

 

3,175

 

 

3,716,750

 

 

 

 

 

 

 

52,219,547

 

Colorado — 1.2%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB,
Hospital, NCMC, Inc. Project, Series B
(AGM), 6.00%, 5/15/26

 

 

3,300

 

 

3,845,820

 

Colorado Housing & Finance Authority,
Refunding RB, S/F Program, Senior
Series A-2, AMT, 7.50%, 4/01/31

 

 

100

 

 

100,589

 

 

 

 

 

 

 

3,946,409

 

Florida — 11.1%

 

 

 

 

 

 

 

City of Jacksonville Florida, RB, Series A,
5.25%, 10/01/26

 

 

2,000

 

 

2,348,340

 

County of Lee Florida, Refunding ARB,
Series A, AMT, 5.38%, 10/01/32

 

 

2,500

 

 

2,676,200

 

County of Miami-Dade Florida, Refunding
RB, Miami International Airport, Series
A, AMT (AGM):

 

 

 

 

 

 

 

5.25%, 10/01/41

 

 

4,610

 

 

4,792,925

 

5.50%, 10/01/41

 

 

4,180

 

 

4,413,035

 

Jacksonville Port Authority, RB, AMT
(AGC), 6.00%, 11/01/38

 

 

3,625

 

 

3,661,975

 

Orange County Health Facilities Authority,
RB, The Nemours Foundation Project,
Series A, 5.00%, 1/01/29

 

 

2,000

 

 

2,201,960

 

Orange County School Board, COP, Series
A (AGC), 5.50%, 8/01/34

 

 

7,600

 

 

8,401,724

 

Tohopekaliga Water Authority, Refunding
RB, Series A, 5.25%, 10/01/36

 

 

6,965

 

 

7,864,112

 

 

 

 

 

 

 

36,360,271

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

APRIL 30, 2012

1


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Idaho — 0.1%

 

 

 

 

 

 

 

Idaho Housing & Finance Association,
RB, S/F Mortgage, Series E, AMT,
6.00%, 1/01/32

 

$

230

 

$

230,881

 

Illinois — 14.2%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO:

 

 

 

 

 

 

 

Chicago School Reform Board,
Series A (NPFGC), 5.50%,
12/01/26

 

 

1,205

 

 

1,455,809

 

Series A, 5.50%, 12/01/39

 

 

3,405

 

 

3,848,774

 

Series A, 5.00%, 12/01/41

 

 

7,455

 

 

8,018,896

 

City of Chicago Illinois, GARB, O’Hare
International Airport, General, Third
Lien, Series A, 5.75%, 1/01/39

 

 

2,000

 

 

2,290,420

 

City of Chicago Illinois, RB, General, Third
Lien, Series C, 6.50%, 1/01/41

 

 

9,085

 

 

10,896,640

 

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

 

 

1,310

 

 

1,457,951

 

City of Chicago Illinois, Refunding RB,
O’Hare International Airport, General,
Third Lien, Series C (AGM), 5.25%,
1/01/35

 

 

2,030

 

 

2,221,307

 

City of Chicago Illinois Transit Authority,
RB:

 

 

 

 

 

 

 

Federal Transit Administration
Section 5309, Series A (AGC),
6.00%, 6/01/26

 

 

3,400

 

 

3,961,850

 

Sales Tax Receipts, 5.25%,
12/01/36

 

 

1,060

 

 

1,180,681

 

Sales Tax Receipts, 5.25%,
12/01/40

 

 

3,135

 

 

3,475,994

 

Railsplitter Tobacco Settlement Authority,
RB:

 

 

 

 

 

 

 

5.50%, 6/01/23

 

 

2,350

 

 

2,685,510

 

6.00%, 6/01/28

 

 

670

 

 

760,289

 

State of Illinois, RB, Build Illinois, Series
B, 5.25%, 6/15/28

 

 

4,000

 

 

4,469,960

 

 

 

 

 

 

 

46,724,081

 

Indiana — 2.8%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB,
Series A (NPFGC), 5.00%, 1/01/42

 

 

6,300

 

 

6,697,971

 

Indianapolis Local Public Improvement
Bond Bank, Refunding RB, Waterworks
Project, Series A (AGC), 5.50%,
1/01/38

 

 

2,370

 

 

2,639,208

 

 

 

 

 

 

 

9,337,179

 

Iowa — 0.6%

 

 

 

 

 

 

 

Iowa Finance Authority, Refunding RB,
Iowa Health System (AGC), 5.25%,
2/15/29

 

 

1,710

 

 

1,871,014

 

Kansas — 0.4%

 

 

 

 

 

 

 

Sedgwick & Shawnee Counties Kansas,
MRB, Series A-2, AMT (Ginnie Mae),
6.20%, 12/01/33

 

 

1,130

 

 

1,147,232

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Kentucky — 3.7%

 

 

 

 

 

 

 

Kentucky Turnpike Authority, RB,
Economic Development Road,
Revitalization Projects, Series A,
5.00%, 7/01/28

 

$

10,430

 

$

12,226,255

 

Massachusetts — 0.4%

 

 

 

 

 

 

 

Massachusetts Development Finance
Agency, RB, Wellesley College,
Series J, 5.00%, 7/01/42

 

 

1,125

 

 

1,271,385

 

Michigan — 7.2%

 

 

 

 

 

 

 

City of Detroit Michigan, RB:

 

 

 

 

 

 

 

Second Lien, Series B (NPFGC),
5.50%, 7/01/29

 

 

4,170

 

 

4,629,242

 

Senior Lien (AGM), 7.50%, 7/01/33

 

 

1,330

 

 

1,666,570

 

City of Detroit Michigan, Refunding RB,
Senior Lien:

 

 

 

 

 

 

 

Series C-1 (AGM), 7.00%, 7/01/27

 

 

4,180

 

 

5,067,790

 

Series C-2 (BHAC), 5.25%, 7/01/29

 

 

1,860

 

 

2,043,452

 

Hudsonville Public Schools, GO, School
Building & Site (Q-SBLF), 5.25%,
5/01/41

 

 

3,420

 

 

3,759,538

 

Michigan State Building Authority,
Refunding RB, Facilities Program,
Facilities Program, Series I (AGC):

 

 

 

 

 

 

 

5.25%, 10/15/24

 

 

1,440

 

 

1,663,704

 

5.25%, 10/15/25

 

 

750

 

 

860,182

 

Royal Oak Hospital Finance Authority
Michigan, Refunding RB, William
Beaumont Hospital, 8.25%, 9/01/39

 

 

3,115

 

 

3,961,283

 

 

 

 

 

 

 

23,651,761

 

Minnesota — 0.7%

 

 

 

 

 

 

 

City of Minneapolis Minnesota, Refunding
RB, Fairview Health Services, Series B
(AGC), 6.50%, 11/15/38

 

 

1,975

 

 

2,323,765

 

Nevada — 2.7%

 

 

 

 

 

 

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

Las Vegas-McCarran International
Airport, Series A (AGM), 5.25%,
7/01/39

 

 

6,860

 

 

7,458,947

 

Subordinate Lien, Series A-2
(NPFGC), 5.00%, 7/01/36

 

 

1,300

 

 

1,352,065

 

 

 

 

 

 

 

8,811,012

 

New Jersey — 7.3%

 

 

 

 

 

 

 

New Jersey EDA, RB, Motor Vehicle
Surcharge, Series A (NPFGC), 5.25%,
7/01/33

 

 

11,000

 

 

11,819,500

 

New Jersey Health Care Facilities
Financing Authority, RB, Virtua Health
(AGC), 5.50%, 7/01/38

 

 

3,400

 

 

3,701,716

 

New Jersey Transportation Trust Fund
Authority, RB, Transportation System:

 

 

 

 

 

 

 

Series A, 5.50%, 6/15/41

 

 

3,030

 

 

3,454,018

 

Series A (AGC), 5.63%, 12/15/28

 

 

2,930

 

 

3,388,897

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

APRIL 30, 2012

2


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

New Jersey (concluded)

 

 

 

 

 

 

 

New Jersey Transportation Trust Fund
Authority, RB, Transportation System
(concluded):

 

 

 

 

 

 

 

Series B, 5.25%, 6/15/36

 

$

1,500

 

$

1,676,130

 

 

 

 

 

 

 

24,040,261

 

New York — 6.5%

 

 

 

 

 

 

 

Hudson New York Yards Infrastructure
Corp., RB, Series A, 5.75%, 2/15/47

 

 

940

 

 

1,060,856

 

New York City Municipal Water Finance
Authority, Refunding RB, Second
General Resolution:

 

 

 

 

 

 

 

Fiscal 2009, Series EE, 5.25%,
6/15/40

 

 

6,930

 

 

7,748,849

 

Fiscal 2011, Series EE, 5.38%,
6/15/43

 

 

2,220

 

 

2,525,716

 

New York City Transitional Finance
Authority, RB:

 

 

 

 

 

 

 

Fiscal 2009, Series S-3,
5.25%, 1/15/39

 

 

2,300

 

 

2,527,148

 

Sub-Future Tax Secured,
Series C, 5.00%, 11/01/39

 

 

2,760

 

 

3,047,261

 

Sub-Series S-2A, 5.00%,
7/15/30

 

 

4,045

 

 

4,593,906

 

 

 

 

 

 

 

21,503,736

 

North Carolina — 0.3%

 

 

 

 

 

 

 

North Carolina HFA, RB, Home
Ownership, Series 14A, AMT (AMBAC),
5.35%, 1/01/22

 

 

920

 

 

921,279

 

Pennsylvania — 0.7%

 

 

 

 

 

 

 

Philadelphia Hospitals & Higher
Education Facilities Authority,
Refunding RB, Children’s Hospital,
Series D, 5.00%, 7/01/32

 

 

1,940

 

 

2,161,645

 

Puerto Rico — 1.2%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
RB, First Sub-Series A, 6.38%,
8/01/39

 

 

3,500

 

 

4,071,200

 

South Carolina — 3.5%

 

 

 

 

 

 

 

South Carolina State Public Service
Authority, Refunding RB, Series A:

 

 

 

 

 

 

 

(AMBAC), 5.00%, 1/01/42

 

 

8,000

 

 

8,706,400

 

Santee Cooper, 5.50%,
1/01/38

 

 

2,500

 

 

2,815,575

 

 

 

 

 

 

 

11,521,975

 

Texas — 22.5%

 

 

 

 

 

 

 

City of Austin Texas, Refunding RB, Series
A (AGM), 5.00%, 11/15/28

 

 

1,300

 

 

1,492,504

 

City of Houston Texas, Refunding RB,
Combined, First Lien, Series A (AGC),
6.00%, 11/15/35

 

 

6,700

 

 

8,023,652

 

Clifton Higher Education Finance Corp.,
Refunding RB, Baylor University,
5.25%, 3/01/32

 

 

3,120

 

 

3,554,647

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Texas (concluded)

 

 

 

 

 

 

 

Dallas Area Rapid Transit, Refunding RB,
Senior Lien, 5.25%, 12/01/38

 

$

5,655

 

$

6,249,963

 

Harris County Cultural Education
Facilities Finance Corp., RB, Children’s
Hospital Project, 5.25%, 10/01/29

 

 

2,080

 

 

2,344,930

 

Harris County Health Facilities
Development Corp., Refunding RB,
Memorial Hermann Healthcare System,
Series B, 7.25%, 12/01/35

 

 

1,000

 

 

1,193,520

 

Lamar Texas Consolidated Independent
School District, GO, Refunding, School
House, Series A, 5.00%, 2/15/45

 

 

2,430

 

 

2,723,422

 

Lubbock Cooper ISD Texas, GO, School
Building (AGC), 5.75%, 2/15/42

 

 

1,250

 

 

1,402,575

 

North Texas Tollway Authority, RB,
Special Projects System, Series A,
5.50%, 9/01/41

 

 

7,880

 

 

9,152,778

 

North Texas Tollway Authority, Refunding
RB, Series A (NPFGC), 5.75%, 1/01/40

 

 

11,575

 

 

12,568,251

 

North Texas Tollway Authority, Refunding
RB, First Tier System:

 

 

 

 

 

 

 

Series A (NPFGC), 5.63%, 1/01/33

 

 

10,975

 

 

12,034,197

 

Series B (NPFGC), 5.75%, 1/01/40

 

 

1,000

 

 

1,085,810

 

Series K-2 (AGC), 6.00%, 1/01/38

 

 

1,000

 

 

1,131,620

 

Tarrant County Cultural Education
Facilities Finance Corp., Refunding RB,
Christus Health, Series A (AGC), 6.50%,
7/01/37

 

 

3,000

 

 

3,440,700

 

Texas Tech University, Refunding RB,
Improvement Financing, 14th Series A,
5.00%, 8/15/29

 

 

2,000

 

 

2,316,900

 

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

 

 

4,575

 

 

5,227,303

 

 

 

 

 

 

 

73,942,772

 

Virginia — 0.8%

 

 

 

 

 

 

 

Virginia Public School Authority, RB,
School Financing, 6.50%, 12/01/35

 

 

2,195

 

 

2,569,423

 

Washington — 4.3%

 

 

 

 

 

 

 

City of Seattle Washington, Refunding
RB, Series A, 5.25%, 2/01/36

 

 

2,400

 

 

2,733,576

 

State of Washington, GO:

 

 

 

 

 

 

 

Motor Vehicle Tax, Senior 520,
5.00%, 6/01/41

 

 

3,600

 

 

3,984,588

 

Various Purpose, Series B,
5.25%, 2/01/36

 

 

1,865

 

 

2,134,847

 

University of Washington, Refunding RB,
Series A, 5.00%, 7/01/41

 

 

4,685

 

 

5,298,875

 

 

 

 

 

 

 

14,151,886

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

APRIL 30, 2012

3


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Wisconsin — 1.0%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities
Authority, Refunding RB, Ascension
Health, Series D, 5.00%, 11/15/41 (a)

 

$

3,125

 

$

3,388,875

 

Total Municipal Bonds – 113.7%

 

 

 

 

 

373,494,151

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Alabama — 1.2%

 

 

 

 

 

 

 

Mobile Board of Water & Sewer
Commissioners, RB (NPFGC), 5.00%,
1/01/31

 

 

3,750

 

 

3,944,587

 

California — 2.2%

 

 

 

 

 

 

 

San Diego Community College District
California, GO, Election of 2002 (AGM),
5.00%, 5/01/30 (c)

 

 

1,486

 

 

1,691,182

 

Sequoia Union High School District
California, GO, Refunding, Election of
2004, Series B (AGM), 5.50%,
7/01/35

 

 

5,189

 

 

5,613,298

 

 

 

 

 

 

 

7,304,480

 

Colorado — 3.0%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB,
Catholic Health, Series C-3 (AGM),
5.10%, 10/01/41

 

 

9,410

 

 

9,859,986

 

District of Columbia — 0.7%

 

 

 

 

 

 

 

District of Columbia Water & Sewer
Authority, Refunding RB, Series A,
6.00%, 10/01/35

 

 

1,700

 

 

2,106,782

 

Florida — 7.1%

 

 

 

 

 

 

 

City of St. Petersburg Florida, Refunding
RB (NPFGC), 5.00%, 10/01/35

 

 

6,493

 

 

6,930,236

 

County of Miami-Dade Florida, GO,
Building Better Communities Program,
Series B-1, 6.00%, 7/01/38

 

 

12,500

 

 

14,264,500

 

Lee County Housing Finance Authority,
RB, Multi-County Program, Series A-2,
AMT (Ginnie Mae), 6.00%, 9/01/40

 

 

2,055

 

 

2,188,781

 

 

 

 

 

 

 

23,383,517

 

Georgia — 2.1%

 

 

 

 

 

 

 

Augusta-Richmond County Georgia,
Water & Sewer, RB (AGM), 5.25%,
10/01/34

 

 

6,290

 

 

6,803,264

 

Illinois — 6.1%

 

 

 

 

 

 

 

Chicago Illinois O’Hare International
Airport, Refunding RB, Series A, 5.00%,
1/01/38

 

 

15,000

 

 

15,804,900

 

 

 

 

 

 

 

 

 

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

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

City of Chicago Illinois, Refunding RB,
Second Lien (AGM), 5.25%, 11/01/33

 

$

3,969

 

$

4,328,688

 

 

 

 

 

 

 

20,133,588

 

Kentucky — 0.8%

 

 

 

 

 

 

 

Kentucky State Property & Building
Commission, Refunding RB, Project No.
93 (AGC), 5.25%, 2/01/27

 

 

2,304

 

 

2,628,655

 

Massachusetts — 3.4%

 

 

 

 

 

 

 

Massachusetts School Building Authority,
RB:

 

 

 

 

 

 

 

Dedicated Sales Tax, Senior
Series B, 5.00%, 10/15/41

 

 

5,080

 

 

5,693,359

 

Series A (AGM), 5.00%, 8/15/30

 

 

4,994

 

 

5,524,462

 

 

 

 

 

 

 

11,217,821

 

Nevada — 6.6%

 

 

 

 

 

 

 

Clark County Water Reclamation District,
GO:

 

 

 

 

 

 

 

Limited Tax, 6.00%, 7/01/38

 

 

10,000

 

 

12,274,700

 

Series B, 5.50%, 7/01/29

 

 

8,247

 

 

9,516,906

 

 

 

 

 

 

 

21,791,606

 

New Jersey — 1.3%

 

 

 

 

 

 

 

New Jersey State Housing & Mortgage
Finance Agency, RB, S/F Housing,
Series CC, 5.25%, 10/01/29

 

 

3,861

 

 

4,154,908

 

New York — 7.3%

 

 

 

 

 

 

 

New York City Transitional Finance
Authority, RB, Future Tax Secured, Sub-
Series E-1, 5.00%, 2/01/42

 

 

2,919

 

 

3,242,742

 

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

 

 

7,515

 

 

8,444,230

 

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

 

 

4,400

 

 

4,994,484

 

Sales Tax Asset Receivable Corp.,
Refunding RB, Series A (AMBAC),
5.25%, 10/15/27

 

 

6,751

 

 

7,404,284

 

 

 

 

 

 

 

24,085,740

 

Puerto Rico — 1.0%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB, Sales Tax, Series C,
5.25%, 8/01/40

 

 

3,020

 

 

3,304,484

 

Texas — 1.7%

 

 

 

 

 

 

 

Waco Educational Finance Corporation,
Refunding RB, Baylor University,
5.00%, 3/01/43

 

 

4,995

 

 

5,547,847

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

APRIL 30, 2012

4


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

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

 

Par
(000)

 

Value

 

Utah — 0.8%

 

 

 

 

 

 

 

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

 

$

2,504

 

$

2,684,174

 

Washington — 2.4%

 

 

 

 

 

 

 

City of Bellevue Washington, GO,
Refunding (NPFGC), 5.50%, 12/01/39

 

 

6,883

 

 

7,777,905

 

Total Municipal Bonds Transferred to Tender Option
Bond (TOB) Trusts – 47.7%

 

 

 

 

 

156,729,344

 

Total Long-Term Investments
(Cost – $488,941,196) – 161.4%

 

 

 

 

 

530,223,495

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

Short-Term Securities

 

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.09% (d)(e)

 

 

4,823,555

 

 

4,823,555

 

Total Short-Term Securities
(Cost – $4,823,555) – 1.5%

 

 

 

 

 

4,823,555

 

Total Investments (Cost - $493,764,751*) – 162.9%

 

 

 

 

 

535,047,050

 

Other Assets Less Liabilities – 0.7%

 

 

 

 

 

2,475,564

 

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable – (23.7)%

 

 

 

 

 

(77,971,329

)

VMTP Shares, at Liquidation Value – (39.9)%

 

 

 

 

 

(131,000,000

)

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

328,551,285

 

 

 

 

*

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

 

$

415,856,771

 

Gross unrealized appreciation

 

$

42,077,493

 

Gross unrealized depreciation

 

 

(823,500

)

Net unrealized appreciation

 

$

41,253,993

 

 

 

(a)

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


 

 

 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Appreciation

 

 

Morgan Stanley Co., Inc.

 

$

3,388,875

 

$

31,438

 

 

 

(b)

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.

 

 

(c)

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.

 

 

(d)

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

 

 

FFI Institutional
Tax-Exempt
Fund

 

 

13,223,965

 

 

(8,400,410

)

 

4,823,555

 

$

971

 

 

 

(e)

Represents the current yield as of report date.


 

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)

ARB

Airport Revenue Bonds

BHAC

Berkshire Hathaway Assurance Corp.

COP

Certificates of Participation

EDA

Economic Development Authority

GARB

General Airport Revenue Bonds

Ginnie Mae

Government National Mortgage Association

GO

General Obligation Bonds

HFA

Housing Finance Agency

ISD

Independent School District

MRB

Mortgage Revenue Bonds

NPFGC

National Public Finance Guarantee Corp.

Q-SBLF

Qualified School Bond Loan Fund

RB

Revenue Bonds

Radian

Radian Financial Guaranty

S/F

Single-Family

 

 

•

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 

333

 

 

10-Year US
Treasury
Note

 

 

Chicago
Board of
Trade

 

 

June 2012

 

$

44,049,656

 

$

(494,930

)

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

APRIL 30, 2012

5


 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

 

 

 

•

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

 

 

—

 

$

530,223,495

 

 

—

 

$

530,223,495

 

Short-Term
Securities

 

$

4,823,555

 

 

—

 

 

—

 

 

4,823,555

 

 

Total

 

$

4,823,555

 

$

530,223,495

 

 

—

 

$

535,047,050

 

 

 

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

 

$

(494,930

)

 

—

 

 

—

 

$

(494,930

)

 

 

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

 

$

440,000

 

 

—

 

 

—

 

$

440,000

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

TOB trust
certificates

 

 

—

 

$

(77,936,286

)

 

—

 

 

(77,936,286

)

VMTP shares

 

 

—

 

 

(131,000,000

)

 

—

 

 

(131,000,000

)

Total

 

$

440,000

 

$

(208,936,286

)

 

—

 

$

(208,496,286

)

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

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND II, 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 Quality Fund II, Inc.

 

 

 

 By: /s/ John M. Perlowski

 

 

 

John M. Perlowski

 

 

Chief Executive Officer (principal executive officer) of

 

 

BlackRock MuniHoldings Quality Fund II, 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 Quality Fund II, Inc.

 

 

 

Date: June 22, 2012

 

 

 

 By: /s/ Neal J. Andrews

 

 

 

Neal J. Andrews

 

 

Chief Financial Officer (principal financial officer) of

 

 

BlackRock MuniHoldings Quality Fund II, Inc.

 

 

 

 

Date: June 22, 2012