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: 07/31/2015
Date of reporting period: 04/30/2015
Item 1 – Schedule of Investments
| Schedule of Investments April 30, 2015 (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%, 6/01/39 |
$ | 5,225 | $ | 6,045,482 | ||||
| City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A, 5.38%, 12/01/35 |
940 | 1,063,732 | ||||||
|
|
|
|||||||
| 7,109,214 | ||||||||
| California — 25.0% |
||||||||
| California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38 |
5,050 | 5,673,927 | ||||||
| California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 8/15/42 |
2,865 | 3,422,328 | ||||||
| City & County of San Francisco California Airports Commission, ARB, Special Facility Lease, SFO Fuel, Series A, AMT (AGM), 6.10%, 1/01/20 |
1,070 | 1,075,061 | ||||||
| City & County of San Francisco California Airports Commission, Refunding ARB, 2nd Series A, AMT: |
||||||||
| 5.50%, 5/01/28 |
1,800 | 2,124,144 | ||||||
| 5.25%, 5/01/33 |
1,410 | 1,600,942 | ||||||
| City of San Jose California, Refunding ARB, Series A-1, AMT, 5.50%, 3/01/30 |
4,045 | 4,568,666 | ||||||
| City of Sunnyvale California, Refunding RB, 5.25%, 4/01/40 |
2,800 | 3,176,516 | ||||||
| County of Sacramento California, ARB, Senior Series A (AGC), 5.50%, 7/01/41 |
3,500 | 3,925,355 | ||||||
| County of Ventura California Community College District, GO, Election of 2002, Series C, 5.50%, 8/01/18 (a) |
3,175 | 3,638,931 | ||||||
| Emery Unified School District, GO, Election of 2010, Series A (AGM), 5.50%, 8/01/35 |
1,875 | 2,236,575 | ||||||
| Kern Community College District, GO, Safety, Repair & Improvement, Election of 2002, Series C, 5.50%, 11/01/33 |
2,445 | 2,892,680 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| California (concluded) |
||||||||
| Los Angeles Community College District California, GO: |
||||||||
| Election of 2001, Series A (NPFGC), 5.00%, 8/01/17 (a) |
$ | 5,000 | $ | 5,473,500 | ||||
| Election of 2008, Series C, 5.25%, 8/01/39 |
2,000 | 2,330,120 | ||||||
| Oceanside Unified School District, GO, Series A (AGC), 5.25%, 8/01/33 |
1,675 | 1,851,378 | ||||||
| Redondo Beach Unified School District, GO, Election of 2008, Series E, 5.50%, 8/01/34 |
2,670 | 3,109,509 | ||||||
| Sequoia Union High School District, GO, Refunding, Election of 2004, Series B (AGM), 5.50%, 7/01/16 (a) |
5,190 | 5,505,448 | ||||||
| State of California, GO, Various Purpose, 5.00%, 4/01/43 |
4,500 | 5,035,860 | ||||||
| State of California Public Works Board, LRB, Various Capital Projects, Series I: |
||||||||
| 5.50%, 11/01/30 |
5,000 | 6,011,000 | ||||||
| 5.50%, 11/01/31 |
3,130 | 3,744,575 | ||||||
| 5.50%, 11/01/33 |
3,000 | 3,591,780 | ||||||
| State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 9/01/33 |
1,260 | 1,474,767 | ||||||
| Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 8/01/40 |
940 | 1,115,235 | ||||||
| University of California, Refunding RB, The Regents of Medical Center, Series J, 5.25%, 5/15/38 |
7,580 | 8,720,335 | ||||||
|
|
|
|||||||
| 82,298,632 | ||||||||
| Colorado — 2.1% |
||||||||
| City & County of Denver Colorado Airport System, ARB, Series A, AMT: |
||||||||
| 5.50%, 11/15/28 |
1,500 | 1,748,280 | ||||||
| 5.50%, 11/15/30 |
565 | 653,213 | ||||||
| 5.50%, 11/15/31 |
675 | 777,148 | ||||||
| BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC. | APRIL 30, 2015 | 1 |
| Schedule of Investments (continued) |
BlackRock MuniHoldings Quality Fund II, Inc. (MUE) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Colorado (concluded) |
||||||||
| Colorado Health Facilities Authority, RB, Hospital, NCMC, Inc. Project, Series B (AGM), 6.00%, 5/15/26 |
$ | 3,300 | $ | 3,738,867 | ||||
|
|
|
|||||||
| 6,917,508 | ||||||||
| Florida — 21.6% |
||||||||
| City of Jacksonville Florida, Refunding RB, Series A, 5.25%, 10/01/33 |
405 | 466,811 | ||||||
| City of St. Petersburg Florida Public Utility Revenue, Refunding RB, (NPFGC), 5.00%, 10/01/15 (a) |
3,000 | 3,060,210 | ||||||
| County of Broward Florida Airport System, ARB, Series A, AMT, 5.13%, 10/01/38 |
5,665 | 6,231,330 | ||||||
| County of Hillsborough Florida Aviation Authority, Refunding ARB, Tampa International Airport, Series A, AMT, 5.50%, 10/01/29 |
2,995 | 3,449,671 | ||||||
| County of Lee Florida, Refunding ARB, Series A, AMT, 5.38%, 10/01/32 |
2,500 | 2,746,225 | ||||||
| County of Miami-Dade Florida, RB, Seaport,: Series A: |
||||||||
| Series A, 5.38%, 10/01/33 |
1,765 | 1,995,545 | ||||||
| Series A, 5.50%, 10/01/42 |
3,000 | 3,467,310 | ||||||
| Series B, AMT, 6.25%, 10/01/38 |
800 | 982,800 | ||||||
| Series B, AMT, 6.00%, 10/01/42 |
1,060 | 1,276,643 | ||||||
| County of Miami-Dade Florida, Refunding RB, Water & Sewer System, Series B, 5.25%, 10/01/29 |
3,130 | 3,660,629 | ||||||
| County of Miami-Dade Florida Aviation, Refunding ARB, AMT, Series A: |
||||||||
| Miami International Airport (AGM), 5.25%, 10/01/41 |
4,610 | 5,050,301 | ||||||
| Miami International Airport (AGM), 5.50%, 10/01/41 |
4,180 | 4,671,819 | ||||||
| 5.00%, 10/01/31 |
5,155 | 5,724,885 | ||||||
| 5.00%, 10/01/32 |
5,000 | 5,490,500 | ||||||
| County of Orange Florida School Board, COP, Series A (AGC), 5.50%, 8/01/34 |
7,600 | 8,523,704 | ||||||
| County of Osceola Florida, RB, Sales Tax, Series A: |
||||||||
| 5.00%, 10/01/40 |
1,170 | 1,307,662 | ||||||
| 5.00%, 10/01/44 |
2,695 | 2,993,067 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| Florida (concluded) |
||||||||
| Reedy Creek Improvement District, GO, Series A, 5.25%, 6/01/32 |
$ | 1,805 | $ | 2,073,674 | ||||
| Tohopekaliga Water Authority, Refunding RB, Series A, 5.25%, 10/01/36 |
6,965 | 7,991,989 | ||||||
|
|
|
|||||||
| 71,164,775 | ||||||||
| Hawaii — 0.7% |
||||||||
| State of Hawaii, Department of Transportation, COP, AMT: |
||||||||
| 5.25%, 8/01/25 |
740 | 858,156 | ||||||
| 5.25%, 8/01/26 |
1,205 | 1,386,015 | ||||||
|
|
|
|||||||
| 2,244,171 | ||||||||
| Idaho — 0.0% |
||||||||
| Idaho Housing & Finance Association, RB, S/F Mortgage, Series E, AMT, 6.00%, 1/01/32 |
140 | 140,220 | ||||||
| Illinois — 17.5% |
||||||||
| City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien: |
||||||||
| Series A, 5.75%, 1/01/39 |
2,000 | 2,279,200 | ||||||
| Series C, 6.50%, 1/01/41 |
9,085 | 10,999,755 | ||||||
| City of Chicago Illinois, GO, Refunding, Series A, Project, 5.25%, 1/01/33 |
1,460 | 1,464,935 | ||||||
| City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A: |
||||||||
| 5.00%, 1/01/41 |
970 | 1,049,278 | ||||||
| AMT, 5.50%, 1/01/28 |
1,000 | 1,156,750 | ||||||
| AMT, 5.50%, 1/01/29 |
1,500 | 1,725,210 | ||||||
| AMT, 5.38%, 1/01/33 |
2,000 | 2,225,340 | ||||||
| City of Chicago Illinois Transit Authority, RB: |
||||||||
| Federal Transit Administration, Section 5309, Series A (AGC), 6.00%, 6/01/26 |
3,400 | 3,914,182 | ||||||
| Sales Tax Receipts, 5.25%, 12/01/36 |
2,940 | 3,252,963 | ||||||
| Sales Tax Receipts, 5.25%, 12/01/40 |
1,500 | 1,655,955 | ||||||
| Sales Tax Receipts, 5.00%, 12/01/44 |
2,355 | 2,628,321 | ||||||
| City of Chicago Illinois Wastewater Transmission, RB, 2nd Lien, 5.00%, 1/01/42 |
2,985 | 3,150,906 | ||||||
| County of Cook Illinois Community College District No. 508, GO, City College of Chicago: |
||||||||
| 5.25%, 12/01/30 |
1,270 | 1,456,881 | ||||||
| 5.50%, 12/01/38 |
1,980 | 2,261,952 | ||||||
| 2 | BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC. | APRIL 30, 2015 |
| Schedule of Investments (continued) |
BlackRock MuniHoldings Quality Fund II, Inc. (MUE) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Illinois (concluded) |
||||||||
| County of Cook Illinois Community College District No. 508, GO, City College of Chicago (concluded): |
||||||||
| 5.25%, 12/01/43 |
$ | 5,500 | $ | 6,139,155 | ||||
| Railsplitter Tobacco Settlement Authority, RB: |
||||||||
| 5.50%, 6/01/23 |
2,350 | 2,750,651 | ||||||
| 6.00%, 6/01/28 |
670 | 789,160 | ||||||
| State of Illinois, GO: |
||||||||
| 5.25%, 2/01/31 |
1,495 | 1,604,359 | ||||||
| 5.25%, 2/01/32 |
2,320 | 2,477,458 | ||||||
| 5.50%, 7/01/33 |
1,000 | 1,104,330 | ||||||
| 5.50%, 7/01/38 |
700 | 769,958 | ||||||
| State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/28 |
2,500 | 2,827,600 | ||||||
|
|
|
|||||||
| 57,684,299 | ||||||||
| Indiana — 0.9% |
||||||||
| Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges, Series A, AMT, 5.00%, 7/01/40 |
460 | 491,929 | ||||||
| Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A (AGC), 5.50%, 1/01/38 |
2,370 | 2,689,902 | ||||||
|
|
|
|||||||
| 3,181,831 | ||||||||
| Louisiana — 3.3% |
||||||||
| City of New Orleans Louisiana Aviation Board, RB, Series B, AMT, 5.00%, 1/01/45 |
2,700 | 2,939,463 | ||||||
| Lake Charles Harbor & Terminal District, RB, Series B, AMT, 5.50%, 1/01/29 |
2,225 | 2,514,317 | ||||||
| Louisiana Local Government Environmental Facilities & Community Development Authority, RB, 5.00%, 10/01/37 |
2,760 | 3,113,308 | ||||||
| Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 5/15/29 |
2,020 | 2,235,170 | ||||||
|
|
|
|||||||
| 10,802,258 | ||||||||
| Massachusetts — 0.5% |
||||||||
| Massachusetts HFA, Refunding RB, Series C, AMT, 5.35%, 12/01/42 |
1,500 | 1,557,090 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| Michigan — 2.3% |
||||||||
| Hudsonville Public Schools, GO, School Building & Site (Q-SBLF), 5.25%, 5/01/41 |
$ | 3,420 | $ | 3,768,738 | ||||
| Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18 (a) |
3,115 | 3,849,766 | ||||||
|
|
|
|||||||
| 7,618,504 | ||||||||
| Minnesota — 0.7% |
||||||||
| City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38 |
1,975 | 2,295,523 | ||||||
| Mississippi — 1.3% |
||||||||
| Mississippi Development Bank, RB, Jackson Water & Sewer System Project (AGM), 6.88%, 12/01/40 |
2,405 | 3,103,099 | ||||||
| Mississippi State University Educational Building Corp., Refunding RB, Mississippi State University Improvement Project, 5.25%, 8/01/38 |
1,000 | 1,138,270 | ||||||
|
|
|
|||||||
| 4,241,369 | ||||||||
| Nevada — 2.7% |
||||||||
| County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A (AGM), 5.25%, 7/01/39 |
3,210 | 3,611,732 | ||||||
| County of Clark Nevada, GO, Limited Tax, 5.00%, 6/01/38 |
5,000 | 5,482,250 | ||||||
|
|
|
|||||||
| 9,093,982 | ||||||||
| New Jersey — 5.3% |
||||||||
| New Jersey EDA, RB, The Goethals Bridge Replacement Project, AMT: |
||||||||
| 5.38%, 1/01/43 |
1,940 | 2,145,524 | ||||||
| (AGM), 5.00%, 1/01/31 |
1,355 | 1,507,397 | ||||||
| New Jersey Health Care Facilities Financing Authority, RB, Virtua Health, Series A (AGC), 5.50%, 7/01/38 |
3,400 | 3,791,374 | ||||||
| New Jersey Transportation Trust Fund Authority, RB, Transportation System: |
||||||||
| Series A, 5.50%, 6/15/41 |
3,030 | 3,319,365 | ||||||
| Series A (AGC), 5.63%, 12/15/28 |
2,930 | 3,373,895 | ||||||
| BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC. | APRIL 30, 2015 | 3 |
| 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 AA, 5.50%, 6/15/39 |
$ | 3,040 | $ | 3,309,526 | ||||
|
|
|
|||||||
| 17,447,081 | ||||||||
| New York — 7.7% |
||||||||
| 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 | 7,866,867 | ||||||
| Water & Sewer System, 5.38%, 6/15/43 |
2,220 | 2,612,185 | ||||||
| Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012, Series A, 5.75%, 2/15/47 |
940 | 1,081,235 | ||||||
| Metropolitan Transportation Authority, RB: |
||||||||
| Series A, 5.25%, 11/15/38 |
8,500 | 9,687,960 | ||||||
| Series A-1, 5.25%, 11/15/39 |
1,550 | 1,769,635 | ||||||
| Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 166th Series, 5.25%, 7/15/36 |
2,000 | 2,255,640 | ||||||
|
|
|
|||||||
| 25,273,522 | ||||||||
| Ohio — 0.9% |
||||||||
| State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 2/15/31 |
2,500 | 2,884,375 | ||||||
| Pennsylvania — 2.2% |
||||||||
| Pennsylvania Economic Development Financing Authority, RB, AMT, Pennsylvania Bridges Finco LP: |
||||||||
| 5.00%, 12/31/34 |
2,000 | 2,174,840 | ||||||
| 5.00%, 12/31/38 |
880 | 950,347 | ||||||
| Township of Bristol Pennsylvania School District, GO: |
||||||||
| 5.25%, 6/01/37 |
2,500 | 2,851,050 | ||||||
| 5.25%, 6/01/43 |
1,100 | 1,250,282 | ||||||
|
|
|
|||||||
| 7,226,519 | ||||||||
| South Carolina — 4.1% |
||||||||
| County of Charleston South Carolina, RB, Special Source, 5.25%, 12/01/38 |
3,760 | 4,352,689 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| South Carolina (concluded) |
||||||||
| County of Charleston South Carolina Airport District, ARB, Series A, AMT: |
||||||||
| 6.00%, 7/01/38 |
$ | 2,940 | $ | 3,426,364 | ||||
| 5.50%, 7/01/41 |
2,500 | 2,824,050 | ||||||
| South Carolina State Public Service Authority, Refunding RB, Series A: |
||||||||
| 5.50%, 1/01/19 (a) |
200 | 230,856 | ||||||
| 5.50%, 1/01/38 |
2,300 | 2,596,447 | ||||||
|
|
|
|||||||
| 13,430,406 | ||||||||
| Texas — 18.8% |
||||||||
| City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 3/01/37 |
2,345 | 2,675,762 | ||||||
| City of Houston Texas Utility System, Refunding RB, Combined 1st Lien, Series A (AGC), 6.00%, 11/15/35 |
6,700 | 7,937,155 | ||||||
| County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Christus Health, Series A (AGC): |
||||||||
| 6.50%, 1/01/19 (a) |
620 | 733,919 | ||||||
| 6.50%, 7/01/37 |
2,380 | 2,731,526 | ||||||
| Dallas Area Rapid Transit, Refunding RB, Senior Lien, 5.25%, 12/01/38 |
4,555 | 5,095,041 | ||||||
| Dallas-Fort Worth International Airport, ARB, Joint Improvement, AMT: |
||||||||
| Series A, 5.00%, 11/01/38 |
1,615 | 1,724,093 | ||||||
| Series H, 5.00%, 11/01/37 |
1,810 | 1,949,225 | ||||||
| Lower Colorado River Authority, Refunding RB, 5.50%, 5/15/33 |
2,155 | 2,517,256 | ||||||
| North Texas Tollway Authority, RB, Special Projects, Series A, 5.50%, 9/01/41 |
7,000 | 8,217,650 | ||||||
| North Texas Tollway Authority, Refunding RB, 1st Tier System: |
||||||||
| Series A (NPFGC), 5.63%, 1/01/33 |
10,975 | 12,060,976 | ||||||
| Series A (NPFGC), 5.75%, 1/01/40 |
11,575 | 12,818,734 | ||||||
| Series B (NPFGC), 5.75%, 1/01/40 |
1,000 | 1,107,450 | ||||||
| Series K-2 (AGC), 6.00%, 1/01/38 |
1,000 | 1,142,720 | ||||||
| 4 | BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC. | APRIL 30, 2015 |
| Schedule of Investments (continued) |
BlackRock MuniHoldings Quality Fund II, Inc. (MUE) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Texas (concluded) |
| |||||||
| Red River Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38 |
$ | 1,070 | $ | 1,223,192 | ||||
|
|
|
|||||||
| 61,934,699 | ||||||||
| Virginia — 1.1% |
| |||||||
| City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 1/01/43 |
945 | 1,046,984 | ||||||
| Virginia Public School Authority, RB, Fluvanna County School Financing, 6.50%, 12/01/18 (a) |
2,195 | 2,613,038 | ||||||
|
|
|
|||||||
| 3,660,022 | ||||||||
| Washington — 1.5% |
||||||||
| City of Seattle Washington Municipal Light & Power, Refunding RB, Series A, 5.25%, 2/01/36 |
2,400 | 2,719,872 | ||||||
| State of Washington, GO, Various Purposes, Series B, 5.25%, 2/01/36 |
1,865 | 2,154,112 | ||||||
|
|
|
|||||||
| 4,873,984 | ||||||||
| Total Municipal Bonds — 122.3% | 403,079,984 | |||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts (b) |
||||||||
| Colorado — 3.0% |
||||||||
| Colorado Health Facilities Authority, RB, Catholic Health, Series C-3 (AGM), 5.10%, 10/01/41 |
9,410 | 10,003,018 | ||||||
| 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 | 1,980,960 | ||||||
| Florida — 4.5% |
||||||||
| County of Lee Florida Housing Finance Authority, RB, S/F Housing, Multi-County Program, Series A-2, AMT (Ginnie Mae), 6.00%, 9/01/40 |
583 | 593,854 | ||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts (b) |
Par (000) |
Value | ||||||
| Florida (concluded) |
||||||||
| County of Miami-Dade Florida, GO, Building Better Communities Program, Series B-1, 6.00%, 7/01/38 |
$ | 12,500 | $ | 14,295,250 | ||||
|
|
|
|||||||
| 14,889,104 | ||||||||
| Illinois — 3.0% |
||||||||
| City of Chicago Illinois, ARB, O’Hare International Airport, Series A (AGM), 5.00%, 1/01/38 |
5,000 | 5,374,900 | ||||||
| City of Chicago Illinois, Refunding RB, Waterworks, 2nd Lien (AGM), 5.25%, 11/01/33 |
3,967 | 4,346,467 | ||||||
|
|
|
|||||||
| 9,721,367 | ||||||||
| Kentucky — 0.8% |
||||||||
| Kentucky State Property & Building Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/27 |
2,304 | 2,623,573 | ||||||
| Nevada — 6.4% |
||||||||
| County of Clark Nevada Water Reclamation District, GO: |
||||||||
| Limited Tax, 6.00%, 7/01/38 |
10,000 | 11,442,900 | ||||||
| Series B, 5.50%, 7/01/29 |
8,247 | 9,574,326 | ||||||
|
|
|
|||||||
| 21,017,226 | ||||||||
| New Jersey — 1.7% |
||||||||
| New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29 |
3,861 | 4,090,407 | ||||||
| New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36 (c) |
1,500 | 1,581,241 | ||||||
|
|
|
|||||||
| 5,671,648 | ||||||||
| New York — 6.9% |
||||||||
| 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 | 6,568,543 | ||||||
| City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 1/15/39 |
2,300 | 2,572,911 | ||||||
| New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43 |
7,515 | 8,601,519 | ||||||
| BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC. | APRIL 30, 2015 | 5 |
| 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 Trusts (b) |
Par (000) |
Value | ||||||
| New York (concluded) |
||||||||
| New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (c) |
$ | 4,400 | $ | 5,091,196 | ||||
|
|
|
|||||||
| 22,834,169 | ||||||||
| 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 | 4,738,761 | ||||||
| Utah — 0.8% |
||||||||
| City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 8/15/41 |
2,503 | 2,749,102 | ||||||
| Total Municipal Bonds Transferred to Tender Option Bond Trusts — 29.2% |
96,228,928 | |||||||
| Total Long-Term Investments (Cost — $452,052,915) — 151.5% |
|
499,308,912 | ||||||
| Short-Term Securities | Shares | Value | ||||||
| FFI Institutional Tax-Exempt Fund, 0.02% (d)(e) |
4,445,632 | $ | 4,445,632 | |||||
| Total Short-Term Securities (Cost — $4,445,632) — 1.3% |
|
4,445,632 | ||||||
| Total Investments (Cost — $456,498,547*) — 152.8% | 503,754,544 | |||||||
| Other Assets Less Liabilities — 2.2% | 7,346,930 | |||||||
| Liability for TOB Trust Certificates, Including Interest |
|
(50,490,813 | ) | |||||
| VMTP Shares, at Liquidation Value — (39.7%) | (131,000,000 | ) | ||||||
|
|
|
|||||||
| Net Assets Applicable to Common Shares — 100.0% | $ | 329,610,661 | ||||||
|
|
|
|||||||
|
* As of April 30, 2015, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:
|
| |||||||
| Tax cost |
$ | 406,754,466 | ||||||
|
|
|
|||||||
| Gross unrealized appreciation |
$ | 47,369,681 | ||||||
| Gross unrealized depreciation |
(843,873 | ) | ||||||
|
|
|
|||||||
| Net unrealized appreciation |
$ | 46,525,808 | ||||||
|
|
|
|||||||
| 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 interest 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, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust or in the event of a default on the security. In the case of a shortfall or default, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreement, which expire from October 1, 2016 to November 15, 2019 is $4,822,876. |
| (d) | During the period ended April 30, 2015, 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 2014 |
Net Activity |
Shares Held at April 30, 2015 |
Income | ||||||||||||
| FFI Institutional Tax-Exempt Fund |
4,174,381 | 271,251 | 4,445,632 | $ | 1,583 | |||||||||||
| (e) | Represents the current yield as of report date. |
| Portfolio Abbreviations |
| AGC | Assured Guarantee Corp. | |
| AGM | Assured Guaranty Municipal Corp. | |
| AMT | Alternative Minimum Tax (subject to) | |
| ARB | Airport Revenue Bonds | |
| BARB | Building Aid Revenue Bonds |
| 6 | BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC. | APRIL 30, 2015 |
| Schedule of Investments (continued) | BlackRock MuniHoldings Quality Fund II, Inc. (MUE) | |||
| 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 | |
| IDA | Industrial Development Authority | |
| IDB | Industrial Development Board | |
| LRB | Lease Revenue Bonds | |
| NPFGC | National Public Finance Guarantee Corp. | |
| Q-SBLF | Qualified School Bond Loan Fund | |
| RB | Revenue Bonds | |
| S/F | Single-Family |
| • | As of April 30, 2015, financial futures contracts outstanding were as follows: |
| Contracts Short |
Issue | Exchange | Expiration | Notional Value |
Unrealized Depreciation |
|||||||||||
| (228 | ) | 10-Year U.S. Treasury Note | Chicago Board of Trade | June 2015 | $ | 29,269,500 | $ | (257,682 | ) | |||||||
| • | Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. 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. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows: |
| • | Level 1 — unadjusted quoted prices 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) |
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. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, please refer to the Fund’s most recent financial statements as contained in its semi-annual report.
As of April 30, 2015, the following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:
| BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC. | APRIL 30, 2015 | 7 |
| Schedule of Investments (concluded) |
BlackRock MuniHoldings Quality Fund II, Inc. (MUE) |
| Level 1 | Level 2 | Level 3 | Total | |||||||||||
| Assets: |
||||||||||||||
| Investments: | ||||||||||||||
| Long-Term Investments1 |
— | $ | 499,308,912 | — | $ | 499,308,912 | ||||||||
| Short-Term Securities |
$ | 4,445,632 | — | — | 4,445,632 | |||||||||
|
|
|
|||||||||||||
| Total |
$ | 4,445,632 | $ | 499,308,912 | — | $ | 503,754,544 | |||||||
|
|
|
|||||||||||||
|
1 See above Schedule of Investments for values in each state or political subdivision.
|
| |||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||
| Derivative Financial Instruments2 | ||||||||||||||
| Liabilities: |
||||||||||||||
| Interest rate contracts |
$ | (257,682 | ) | — | — | $ | (257,682 | ) | ||||||
| 2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
| |||||||||||||
|
The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of April 30, 2015, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:
|
| |||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||
| Assets: |
||||||||||||||
| Cash pledged for financial futures contracts |
$ | 324,000 | — | — | $ | 324,000 | ||||||||
| Liabilities: |
||||||||||||||
| TOB trust certificates |
— | $ | (50,474,270 | ) | — | (50,474,270 | ) | |||||||
| VMTP Shares |
— | (131,000,000 | ) | — | (131,000,000 | ) | ||||||||
|
|
|
|||||||||||||
| Total |
$ | 324,000 | $ | (181,474,270 | ) | — | $ | (181,150,270 | ) | |||||
|
|
|
|||||||||||||
During the period ended April 30, 2015, there were no transfers between levels.
| 8 | BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC. | APRIL 30, 2015 |
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, 2015 | ||||
| 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, 2015 | ||||
| By: | /s/ Neal J. Andrews |
|||
| Neal J. Andrews | ||||
| Chief Financial Officer (principal financial officer) of BlackRock MuniHoldings Quality Fund II, Inc. | ||||
| Date: June 22, 2015 | ||||