N-Q 1 d375978dnq.htm BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC. BlackRock MuniHoldings Quality Fund II, Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-09191

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: 07/31/2017

Date of reporting period: 4/30/2017

Item 1 – Schedule of Investments

Schedule of Investments April 30, 2017 (Unaudited)

   

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

Alabama — 2.1%

     

City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC), 6.00%, 6/01/19 (a)

    $ 5,225     $ 5,752,150  

City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A, 5.38%, 12/01/35

      940       1,044,791  
    

 

 

  
               6,796,941  

California — 22.6%

     

California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/18 (a)

      5,050       5,368,857  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 8/15/42

      2,865       3,256,330  

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

      680       682,836  

City & County of San Francisco California Airports Commission, Refunding ARB, AMT, Series A:

     

2nd, 5.50%, 5/01/28

      1,800       2,091,546  

2nd, 5.25%, 5/01/33

      1,410       1,573,377  

5.00%, 5/01/44

      1,860       2,030,860  

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

      4,045       4,534,890  

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

      2,800       3,079,496  

County of Sacramento California, ARB, Senior Series A (AGC), 5.50%, 7/01/18 (a)

      3,500       3,691,520  

County of Ventura California Community College District, GO, Election of 2002, Series C, 5.50%, 8/01/18 (a)

      3,175       3,362,166  

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

      1,875       2,148,769  

Kern Community College District, GO, Safety, Repair & Improvement, Series C, 5.50%, 11/01/33

      2,445       2,895,956  

Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 8/01/20 (a)

      2,000       2,261,680  
Municipal Bonds    Par  
(000)		     Value  

California (continued)

 

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

    $ 1,675     $ 1,754,847  

Redondo Beach Unified School District, GO, Election of 2008, Series E, 5.50%, 8/01/21 (a)

      2,670       3,130,175  

Riverside County Public Financing Authority, RB, Capital Facilities Project, 5.25%, 11/01/40

      4,500       5,189,625  

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

     

5.50%, 11/01/30

      5,000       6,005,500  

5.50%, 11/01/31

      3,130       3,748,957  

5.50%, 11/01/33

      3,000       3,571,200  

State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 9/01/33

      1,260       1,478,131  

Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 8/01/40

      940       1,103,588  

University of California, Refunding RB, The Regents of Medical Center, Series J, 5.25%, 5/15/38

      7,580       8,747,623  
    

 

 

  
               71,707,929  

Colorado — 2.1%

     

City & County of Denver Colorado Airport System, ARB, Series A, AMT:

     

5.50%, 11/15/28

      1,500       1,721,160  

5.50%, 11/15/30

      565       642,721  

5.50%, 11/15/31

      675       765,612  

Colorado Health Facilities Authority, RB, Hospital, NCMC, Inc. Project, Series B (AGM), 6.00%, 5/15/19 (a)

      3,300       3,627,888  
    

 

 

  
               6,757,381  

Florida — 20.5%

     

City of Jacksonville Florida, Refunding RB, Series A, 5.25%, 10/01/33

      405       466,823  

County of Broward Florida Airport System Revenue, ARB, Series A, AMT:

     

5.13%, 10/01/38

      5,665       6,236,655  

5.00%, 10/01/45

      1,440       1,576,584  
 

 

                
   BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.    APRIL 30, 2017    1

Schedule of Investments (continued)

   

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

 

Municipal Bonds   Par  
(000)		     Value  

Florida (continued)

 

County of Hillsborough Florida Aviation Authority, Refunding ARB, Tampa International Airport, Series A, AMT, 5.50%, 10/01/29

   $ 2,995     $ 3,412,174  

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

     2,500       2,780,700  

County of Lee Florida HFA, RB, S/F Housing, Multi-County Program, Series A-2, AMT (Ginnie Mae), 6.00%, 9/01/40

     300       301,683  

County of Miami-Dade Florida, RB, Seaport Department:

    

Series A, 5.38%, 10/01/33

     1,765       2,000,539  

Series A, 5.50%, 10/01/42

     3,000       3,467,490  

Series B, AMT, 6.25%, 10/01/38

     800       949,344  

Series B, AMT, 6.00%, 10/01/42

     1,060       1,226,441  

County of Miami-Dade Florida, Refunding RB, Water & Sewer System, Series B, 5.25%, 10/01/29

     3,130       3,635,401  

County of Miami-Dade Florida Aviation, Refunding ARB, AMT, Series A:

    

Miami International Airport (AGM),
5.50%, 10/01/18 (a)

     4,180       4,442,964  

Miami International Airport (AGM), 5.25%, 10/01/41

     4,610       4,822,198  

5.00%, 10/01/31

     5,155       5,672,923  

5.00%, 10/01/32

     5,000       5,484,000  

County of Orange Florida School Board, COP, Series A (AGC), 5.50%, 8/01/19 (a)

     7,600       8,347,004  

Reedy Creek Florida Improvement District, GO, Series A, 5.25%, 6/01/32

     1,805       2,094,883  

Tohopekaliga Florida Water Authority, Refunding RB, Series A, 5.25%, 10/01/21 (a)

     6,965       8,100,156  
   

 

 

  
              65,017,962  

Hawaii — 2.2%

    

State of Hawaii, Department of Transportation, COP, AMT:

    

5.25%, 8/01/25

     740       839,826  

5.25%, 8/01/26

     1,205       1,356,228  
Municipal Bonds   Par  
(000)		     Value  

Hawaii (continued)

    

State of Hawaii, Department of Transportation, RB, Series A, AMT, 5.00%, 7/01/45

   $ 4,215     $ 4,629,503  
   

 

 

  
              6,825,557  

Illinois — 15.1%

    

City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A:

    

5.00%, 1/01/41

     1,140       1,230,391  

AMT, 5.50%, 1/01/28

     1,000       1,145,240  

AMT, 5.50%, 1/01/29

     1,500       1,710,240  

AMT, 5.38%, 1/01/33

     2,000       2,226,220  

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

    

Series A, 5.75%, 1/01/39

     2,000       2,253,800  

Series C, 6.50%, 1/01/21 (a)

     9,085       10,789,164  

City of Chicago Illinois Transit Authority, RB:

    

Federal Transit Administration, Section 5309, Series A (AGC), 6.00%, 12/01/18 (a)

     3,400       3,668,396  

Sales Tax Receipts, 5.25%, 12/01/36

     2,940       3,147,388  

Sales Tax Receipts, 5.25%, 12/01/40

     1,500       1,599,915  

City of Chicago Illinois Wastewater Transmission, RB, 2nd Lien, 5.00%, 1/01/42

     2,985       3,139,563  

County of Cook Illinois Community College District No. 508, GO, City College of Chicago:

    

5.25%, 12/01/30

     1,270       1,363,612  

5.50%, 12/01/38

     1,205       1,280,782  

5.25%, 12/01/43

     2,960       3,088,730  

Illinois Finance Authority, Refunding RB, Presence Health Network, Series C:

    

4.00%, 2/15/41

     1,155       1,014,252  

5.00%, 2/15/41

     975       1,021,878  

Railsplitter Illinois Tobacco Settlement Authority, RB:

    

5.50%, 6/01/23

     2,350       2,670,164  

6.00%, 6/01/28

     670       762,185  

State of Illinois, GO:

    

5.25%, 2/01/31

     1,495       1,534,184  

5.25%, 2/01/32

     2,320       2,371,411  

5.50%, 7/01/33

     1,000       1,040,750  
 

 

                
2    BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.    APRIL 30, 2017   

Schedule of Investments (continued)

   

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

 

Municipal Bonds   Par  
(000)		     Value  

Illinois (continued)

    

State of Illinois, GO (continued):

    

5.50%, 7/01/38

   $ 700     $ 725,487  
   

 

 

  
              47,783,752  

Indiana — 1.0%

 

Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A (AGC):

    

5.50%, 1/01/19 (a)

     465       499,745  

5.50%, 1/01/38

     1,905       2,026,939  

State of Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges, Series A, AMT, 5.00%, 7/01/40

     460       488,414  
   

 

 

  
              3,015,098  

Louisiana — 1.5%

 

Lake Charles Louisiana Harbor & Terminal District, RB, Series B, AMT (AGM), 5.50%, 1/01/29

     2,225       2,572,233  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 5/15/29

     2,020       2,128,575  
   

 

 

  
              4,700,808  

Maryland — 0.9%

 

County of Howard Maryland Housing Commission, RB, M/F Housing, Woodfield Oxford Square Apartments, 5.00%, 12/01/42

     2,450       2,720,113  

Massachusetts — 0.9%

 

Massachusetts Development Finance Agency, RB, Emerson College Issue, Series A:

    

5.00%, 1/01/47

     420       453,398  

5.25%, 1/01/42

     940       1,048,627  

Massachusetts HFA, Refunding RB, Series C, AMT, 5.35%, 12/01/42

     1,160       1,233,486  
   

 

 

  
              2,735,511  

Michigan — 2.3%

 

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

     3,420       3,816,754  
Municipal Bonds   Par  
(000)		     Value  

Michigan (continued)

    

Royal Oak Michigan Hospital Finance Authority, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18 (a)

   $ 3,115     $ 3,415,286  
   

 

 

  
              7,232,040  

Minnesota — 0.7%

 

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC):

    

6.50%, 11/15/18 (a)

     305       330,690  

6.50%, 11/15/38

     1,670       1,792,445  
   

 

 

  
              2,123,135  

Mississippi — 1.3%

 

Mississippi Development Bank, RB, Jackson Water & Sewer System Project (AGM), 6.88%, 12/01/40

     2,405       3,069,117  

Mississippi State University Educational Building Corp., Refunding RB, Mississippi State University Improvement Project, 5.25%, 8/01/38

     1,000       1,147,750  
   

 

 

  
              4,216,867  

Nevada — 2.7%

 

County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A (AGM), 5.25%, 7/01/39

     3,210       3,474,215  

County of Clark Nevada, GO, Limited Tax, 5.00%, 6/01/18 (a)

     5,000       5,221,900  
   

 

 

  
              8,696,115  

New Jersey — 4.3%

 

New Jersey EDA, RB, Goethals Bridge Replacement Project, AMT, Private Activity Bond:

    

5.38%, 1/01/43

     1,940       2,151,227  

(AGM), 5.00%, 1/01/31

     1,355       1,477,099  

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

     3,400       3,660,984  

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

    

Series A (AGC), 5.63%, 12/15/28

     2,930       3,142,894  
 

 

                
   BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.    APRIL 30, 2017    3

Schedule of Investments (continued)

   

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

 

Municipal Bonds   Par  
(000)		     Value  

New Jersey (continued)

    

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

    

Series AA, 5.50%, 6/15/39

   $ 3,040     $ 3,179,597  
   

 

 

  
              13,611,801  

New York — 8.7%

 

City of New York New York Municipal Water Finance Authority, Refunding RB, 2nd General Resolution, Series EE:

    

Fiscal 2009, 5.25%, 6/15/40

     6,930       7,512,744  

Water & Sewer System, 5.38%, 6/15/43

     2,220       2,501,651  

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

     940       1,068,207  

Metropolitan Transportation Authority, RB:

    

Series A, 5.25%, 11/15/38

     8,500       9,663,735  

Series A-1, 5.25%, 11/15/39

     1,550       1,757,855  

New York Transportation Development Corp., ARB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT, 5.25%, 1/01/50

     1,800       1,950,588  

Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 166th Series, 5.25%, 7/15/36

     2,000       2,235,780  

TSASC, Inc., Refunding RB, Series A, 5.00%, 6/01/41

     895       969,920  
   

 

 

  
              27,660,480  

Ohio — 0.9%

 

State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 2/15/31

     2,500       2,867,325  

Oklahoma — 0.6%

    

Oklahoma Development Finance Authority, RB, Provident Oklahoma Education Resources, Inc., Cross Village Student Housing Project, Series A, 5.25%, 8/01/57

     1,640       1,770,003  

Pennsylvania — 1.3%

    

Township of Bristol Pennsylvania School District, GO:

    

5.25%, 6/01/37

     2,500       2,768,425  
Municipal Bonds   Par  
(000)		     Value  

Pennsylvania (continued)

    

Township of Bristol Pennsylvania School District, GO (continued):

    

5.25%, 6/01/43

   $ 1,100     $ 1,215,544  
   

 

 

  
              3,983,969  

South Carolina — 5.5%

 

County of Charleston South Carolina, RB, Special Source, 5.25%, 12/01/38

     3,760       4,342,687  

County of Charleston South Carolina Airport District, ARB, Series A, AMT:

    

6.00%, 7/01/38

     2,940       3,360,626  

5.50%, 7/01/41

     2,500       2,781,250  

State of South Carolina Ports Authority, RB, AMT, 5.25%, 7/01/50

     1,870       2,038,319  

State of South Carolina Public Service Authority, Refunding RB:

    

Series C, 5.00%, 12/01/46

     1,000       1,062,190  

Series E, 5.25%, 12/01/55

     3,500       3,782,415  
   

 

 

  
              17,367,487  

Tennessee — 1.0%

 

Metropolitan Nashville Airport Authority, ARB, Series B, AMT, 5.00%, 7/01/40

     3,000       3,288,330  

Texas — 18.0%

    

City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 3/01/37

     2,345       2,671,518  

City of Houston Texas Combined Utility System Revenue, Refunding RB, Combined 1st Lien, Series A (AGC):

    

6.00%, 5/15/19 (a)

     6,345       6,978,168  

6.00%, 11/15/35

     355       390,078  

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Christus Health, Series A (AGC):

    

6.50%, 1/01/19 (a)

     620       675,726  

6.50%, 7/01/37

     2,380       2,546,481  

Dallas Texas Area Rapid Transit, Refunding RB, Senior Lien (a):

    

5.25%, 12/01/18

     2,605       2,780,290  

5.25%, 12/01/18

     1,950       2,081,215  

Dallas-Fort Worth Texas International Airport, ARB, Joint Improvement, AMT:

    

Series A, 5.00%, 11/01/38

     1,615       1,719,587  

Series H, 5.00%, 11/01/37

     1,810       1,947,343  
 

 

                
4    BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.    APRIL 30, 2017   

Schedule of Investments (continued)

   

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

 

Municipal Bonds   

Par  

(000)

     Value  

Texas (continued)

     

Lower Colorado River Authority, Refunding RB, 5.50%, 5/15/33

    $ 2,155     $ 2,507,838  

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

      5,480       6,303,206  

North Texas Tollway Authority, Refunding RB, 1st Tier System:

     

(NPFGC), 5.75%, 1/01/18 (a)

      4,340       4,481,267  

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

      1,400       1,439,494  

Series A, 5.63%, 1/01/18 (a)

      4,895       5,050,220  

Series A, 5.63%, 1/01/33

      6,080       6,246,410  

Series K-2 (AGC), 6.00%, 1/01/19 (a)

      1,000       1,082,130  

Series S, 5.75%, 1/01/18 (a)

      855       882,830  

Series S, 5.75%, 1/01/18 (a)

      5,835       6,024,929  

Series SE, 5.75%, 1/01/40

      145       149,240  

Red River Texas Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38

      1,070       1,207,484  
    

 

 

  
               57,165,454  

Utah — 1.5%

     

City of Salt Lake Utah Airport Revenue, ARB, Series A, AMT, 5.00%, 7/01/47

      4,250       4,776,107  

Virginia — 1.1%

     

City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 1/01/43

      945       1,047,277  

State of Virginia Public School Authority, RB, Fluvanna County School Financing, 6.50%, 12/01/18 (a)

      2,195       2,387,129  
    

 

 

  
               3,434,406  

Washington — 1.5%

     

City of Seattle Washington Municipal Light & Power, Refunding RB, Series A, 5.25%, 2/01/36

      2,400       2,681,184  

State of Washington, GO, Various Purposes, Series B, 5.25%, 2/01/36

      1,865       2,096,484  
    

 

 

  
               4,777,668  

Wyoming — 0.2%

     

State of Wyoming Municipal Power Agency, Inc., Refunding RB, Series A (BAM), 5.00%, 1/01/42

      570       636,656  
Total Municipal Bonds — 120.5%              381,668,895  

Municipal Bonds Transferred to

Tender Option Bond Trusts (b)

   

Par  

(000)

     Value  

California — 2.7%

     

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No.2, Series A, 5.00%, 10/01/47

    $ 7,499     $ 8,509,987  

Colorado — 3.1%

     

Colorado Health Facilities Authority, RB, Catholic Health, Series C-3 (AGM), 5.10%, 4/29/18 (a)

      9,410       9,805,596  

Connecticut — 1.1%

     

Connecticut State Health & Educational Facility Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/45

      3,061       3,413,600  

District of Columbia — 0.6%

     

District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 10/01/18 (a)(c)

      1,699       1,820,162  

Florida — 4.2%

     

County of Miami-Dade Florida, GO, Building Better Communities Program, Series B-1, 6.00%, 7/01/18 (a)

      12,500       13,240,250  

Illinois — 5.8%

     

City of Chicago Illinois, ARB, O’Hare International Airport, Series A (AGM), 5.00%, 1/01/18 (a)

      5,000       5,138,600  

City of Chicago Illinois, Refunding RB, Waterworks, 2nd Lien (AGM), 5.25%, 11/01/33

      3,967       4,123,214  

State of Illinois Toll Highway Authority, RB, Senior:

     

Priority, Series A, 5.00%, 1/01/40

      1,980       2,195,780  

Series B, 5.00%, 1/01/40

      6,148       6,837,195  
    

 

 

  
               18,294,789  

Maryland — 0.9%

     

City of Baltimore Maryland, RB, Wastewater Project, Sub-Series A, 5.00%, 7/01/46

      2,499       2,828,133  

Nevada — 6.2%

     

County of Clark Nevada Water Reclamation District, GO (a):

     

Limited Tax, 6.00%, 7/01/18

      10,000       10,595,800  
 

 

                
   BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.    APRIL 30, 2017    5

Schedule of Investments (continued)

   

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

 

Municipal Bonds Transferred to

Tender Option Bond Trusts (b)

   

Par  

(000)

     Value  

Nevada (continued)

     

County of Clark Nevada Water Reclamation District, GO (a) (continued):

     

Series B, 5.50%, 7/01/19

    $ 8,247     $ 9,030,651  
    

 

 

  
               19,626,451  

New Jersey — 1.7%

     

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

      3,681       3,813,496  

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36 (c)

      1,500       1,534,868  
    

 

 

  
               5,348,364  

New York — 7.1%

     

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series FF, 5.00%, 6/15/45

      5,958       6,658,852  

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

      2,300       2,447,837  

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

      7,515       8,479,515  

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

      4,400       5,009,222  
    

 

 

  
               22,595,426  

Pennsylvania — 0.7%

     

County of Westmoreland Pennsylvania Municipal Authority, Refunding RB, (BAM), 5.00%, 8/15/38

      1,963       2,196,077  

Municipal Bonds Transferred to

Tender Option Bond Trusts (b)

   

Par  

(000)

     Value  

Texas — 1.5%

     

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Baylor Health Care System Project, Series A, 5.00%, 11/15/38

    $ 4,296     $ 4,728,463  

Utah — 0.8%

     

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

      2,504       2,663,973  

Virginia — 1.3%

     

County of Fairfax Virginia EDA, RB, Metrorail Parking System, 5.00%, 4/01/47 (c)

      3,720       4,264,162  
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 37.7%		       119,335,433  

Total Long-Term Investments

(Cost — $466,313,115) — 158.2%

 

 

     501,004,328  
    
                  
Short-Term Securities    Shares         

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.70% (d)(e)

      6,267,545       6,268,799  
Total Short-Term Securities
(Cost — $6,268,799) — 2.0%		       6,268,799  
Total Investments
(Cost — $472,581,914*) — 160.2%		       507,273,127  
Other Assets Less Liabilities — 1.9%       5,938,104  

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (20.7)%

 

     (65,493,891 ) 
VMTP Shares, at Liquidation Value — (41.4)%       (131,000,000 ) 
    

 

 

  
Net Assets Applicable to Common Shares — 100.0%     $ 316,717,340  
    

 

 

  

 

*  As of April 30, 2017, gross unrealized appreciation and depreciation

  based on cost for U.S. federal income tax purposes were as follows:

   

 

Tax cost

 

   $ 407,780,089  
    

 

 

  

Gross unrealized appreciation

 

   $ 35,315,647  

Gross unrealized depreciation

 

     (1,166,062 ) 
    

 

 

  

Net unrealized appreciation

 

   $ 34,149,585  
    

 

 

  
 

 

                
6    BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.    APRIL 30, 2017   

Schedule of Investments (continued)

   

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

 

 

Notes to Schedule of Investments

 

(a)   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.

 

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

 

(c)   All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expires between May 7, 2018 to October 1, 2024, is $6,783,458.

 

(d)   During the period ended April 30, 2017, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate     

Shares Held

at July 31,

2016

        Net
Activity		        Shares Held
at April 30,
2017		       

Value at
April 30,

2017

        Income       

Net

Realized
Gain

        Change in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Liquidity Funds, MuniCash, Institutional Class

        627,379          5,640,166          6,267,545        $ 6,268,799        $ 8,169        $ 1,001          —  

 

(e)   Current yield as of period end.

 

Derivative Financial Instruments Outstanding as of Period End

 

Futures Contracts

 

Contracts
Short		     Issue    Expiration      Notional
Value		     Unrealized
Depreciation		  
  (51 )    5-Year U.S. Treasury Note      June 2017      $ 6,038,719     $ (27,739 ) 
  (104 )    10-Year U.S. Treasury Note      June 2017      $ 13,074,750       (97,133 ) 
  (53 )    Long U.S. Treasury Bond      June 2017      $ 8,107,344       (96,134 ) 
  (11 )    Ultra U.S. Treasury Bond      June 2017      $ 1,792,312       (21,077 ) 
  Total             $ (242,083 ) 
         

 

 

  

 

Portfolio Abbreviations

 

AGC    Assured Guarantee Corp.
AGM    Assured Guaranty Municipal Corp.
AMT    Alternative Minimum Tax (subject to)
ARB    Airport Revenue Bonds
BAM    Build America Mutual Assurance Co.
BARB    Building Aid Revenue Bonds
COP    Certificates of Participation
EDA    Economic Development Authority
GARB    General Airport Revenue Bonds
GO    General Obligation Bonds
HFA    Housing Finance Agency
IDA    Industrial Development Authority
IDB    Industrial Development Board
LRB    Lease Revenue Bonds
M/F    Multi-Family
NPFGC    National Public Finance Guarantee Corp.
RB    Revenue Bonds
S/F    Single-Family

 

                
   BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.    APRIL 30, 2017    7

Schedule of Investments (continued)

   

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

 

 

Fair Value Hierarchy as of Period End

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

 

  •  

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

 

  •  

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

 

  •  

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

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

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

     Level 1        Level 2        Level 3        Total  

Assets:

                 
Investments:                 

Long-Term Investments1

     —        $ 501,004,328          —        $ 501,004,328  

Short-Term Securities

   $ 6,268,799          —          —          6,268,799  
 

 

 

  

Total Investments

   $ 6,268,799        $ 501,004,328          —        $ 507,273,127  
 

 

 

  
                
Derivative Financial Instruments2                                         

Liabilities:

                 

Interest rate contracts

   $ (242,083 )         —          —        $ (242,083 ) 

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

     

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

     

 

                
8    BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.    APRIL 30, 2017   

Schedule of Investments (concluded)

   

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

     Level 1        Level 2        Level 3        Total  

Liabilities:

                 

TOB Trust Certificates

     —        $ (65,343,453 )         —        $ (65,343,453 ) 

VMTP Shares at Liquidation Value

     —          (131,000,000 )         —          (131,000,000 ) 
 

 

 

  

Total

     —        $ (196,343,453 )         —        $ (196,343,453 ) 
 

 

 

  

During the period ended April 30, 2017, there were no transfers between levels.

 

                
   BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.    APRIL 30, 2017    9

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, 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 MuniHoldings Quality Fund II, Inc.

Date: June 22, 2017

 

By:     /s/ Neal J. Andrews                            
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock MuniHoldings Quality Fund II, Inc.

Date: June 22, 2017