BlackRock MuniHoldings 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 811-08215

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

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniHoldings 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: 04/30/2013

Date of reporting period: 01/31/2013

Item 1    –    Schedule of Investments

Schedule of Investments January 31, 2013 (Unaudited)    BlackRock MuniHoldings Fund II, Inc. (MUH)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

Alabama – 1.8%

      

County of Jefferson Alabama, RB, Limited Obligation School, Series A,

      

5.00%, 1/01/24

    $ 3,450       $ 3,376,067   
     

 

 

  

Alaska – 0.8%

      

Northern Tobacco Securitization Corp., Refunding RB, Asset Backed,

      

5.00%, 6/01/46

      1,660         1,458,343   
     

 

 

  

Arizona – 1.6%

      

Phoenix IDA Arizona, Refunding RB, America West Airlines, Inc. Project, AMT,

      

6.30%, 4/01/23

      2,060         1,947,524   

Pima County IDA, RB, Arizona Charter Schools Project, Series C,

      

6.75%, 7/01/31

      900         903,339   

Show Low Improvement District, Special Assessment Bonds, District No. 5,

      

6.38%, 1/01/15

      210         212,148   
     

 

 

  
        3,063,011   
     

 

 

  

California – 14.8%

      

Benicia Unified School District, GO, CAB, Refunding, Series A (NPFGC),

      

2.31%, 8/01/20(a)

      2,000         1,684,020   

California Health Facilities Financing Authority, RB:

      

St. Joseph Health System, Series A, 5.75%, 7/01/39

      1,110         1,279,242   

Stanford Hospital and Clinics, Series A, 5.00%, 8/15/51

      595         666,329   

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

      1,585         1,904,869   

California Pollution Control Financing Authority, RB:

      

5.00%, 11/21/45

      620         633,516   

Poseidon Resources (Channel Side) LP Desalination, AMT,

      

5.00%, 7/01/37

      515         539,406   

Poseidon Resources (Channel Side) LP Desalination, AMT,

      

5.00%, 11/21/45

      1,295         1,346,230   

California State Public Works Board, RB, Various Capital Projects, Sub-Series l-1,

      

6.38%, 11/01/34

      600         736,032   

California Statewide Communities Development Authority, RB, John Muir Health,

      

5.13%, 7/01/39

      1,090         1,194,912   

California Statewide Communities Development Authority, Refunding RB, Episcopal Communities and Services:

      

5.00%, 5/15/42

      250         272,668   

5.00%, 5/15/47

      185         200,570   

City of Los Angeles Department of Airports, Refunding RB, Series A,

      

5.25%, 5/15/39

      400         453,912   

San Diego Unified School District California, GO, CAB, Election of 2008, Series A,

      

4.05%, 7/01/29(a)

      2,525         1,307,369   

San Marino Unified School District California, GO, Series A (NPFGC)(a):

      

1.51%, 7/01/17

      1,820         1,703,374   

1.70%, 7/01/18

      1,945         1,775,065   

1.83%, 7/01/19

      2,070         1,842,238   

State of California, GO, Various Purpose:

      

6.00%, 3/01/33

      1,265         1,573,040   

6.50%, 4/01/33

      7,325         9,107,905   
     

 

 

  
        28,220,697   
     

 

 

  

Colorado – 1.9%

      

Colorado Educational & Cultural Facilities Authority, RB, Charter School, Colorado Springs,

      

5.50%, 7/01/40

      1,055         1,111,337   

Plaza Metropolitan District No. 1 Colorado Tax Allocation Bonds, Public Improvement Fee, Tax Increment,

      

8.13%, 12/01/25

      855         855,017   

Regional Transportation District, COP, Refunding, Series A,

      

5.38%, 6/01/31

      510         582,507   

University of Colorado, RB, Series A,

      

5.38%, 6/01/38

      920         1,079,896   
     

 

 

  
        3,628,757   
     

 

 

  

Connecticut – 1.5%

      

Connecticut State Health & Educational Facility Authority, RB, Ascension Health Senior Credit,

      

5.00%, 11/15/40

      685         768,269   

Connecticut State Health & Educational Facility Authority, Refunding RB, Wesleyan University,

      

5.00%, 7/01/35

      1,875         2,134,687   
     

 

 

  
        2,902,956   
     

 

 

  

Delaware – 1.5%

      

County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project,

      

6.00%, 10/01/40

      570         644,550   

Delaware State EDA, RB, Exempt Facilities, Indian River Power,

      

5.38%, 10/01/45

      2,050         2,193,890   
     

 

 

  
        2,838,440   
     

 

 

  

District of Columbia – 2.6%

      

Metropolitan Washington Airports Authority, Refunding RB:

      

CAB, Second Senior Lien, Series B (AGC), 4.80%, 10/01/34(a)

      10,170         3,641,368   

First Senior Lien, Series A, 5.00%, 10/01/39

      255         280,740   

 

    BLACKROCK MUNIHOLDINGS FUND II, INC.   JANUARY 31, 2013   1

Schedule of Investments (continued)    BlackRock MuniHoldings Fund II, Inc. (MUH)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

District of Columbia (concluded)

  

Metropolitan Washington Airports Authority, Refunding RB (concluded):

      

First Senior Lien, Series A,

      

5.25%, 10/01/44

    $ 1,000       $ 1,108,850   
     

 

 

  
        5,030,958   
     

 

 

  

Florida – 7.3%

      

Ballantrae Community Development District, Special Assessment Bonds,

      

6.00%, 5/01/35

      1,500         1,523,115   

Broward County Water & Sewer Utility Revenue, Refunding RB, Series A,

      

5.25%, 10/01/34

      545         630,887   

City of Clearwater Florida, RB, Series A,

      

5.25%, 12/01/39

      1,725         1,967,690   

County of Miami-Dade Florida, RB, CAB, Sub-Series A (NPFGC),

      

5.20%, 10/01/37(a)

      1,765         497,783   

Greater Orlando Aviation Authority Florida, RB, Special Purpose, JetBlue Airways Corp., AMT,

      

6.50%, 11/15/36

      1,515         1,533,937   

Hillsborough County IDA, RB, National Gypsum Co., Series B, AMT,

      

7.13%, 4/01/30

      1,380         1,380,662   

Mid-Bay Bridge Authority, RB, Series A,

      

7.25%, 10/01/40

      1,135         1,450,746   

Palm Coast Park Community Development District, Special Assessment Bonds,

      

5.70%, 5/01/37

      480         332,141   

Preserve at Wilderness Lake Community Development District, Special Assessment Bonds, Series A,

      

5.90%, 5/01/34

      1,175         1,180,017   

Tampa-Hillsborough County Expressway Authority, Refunding RB:

      

Series A, 5.00%, 7/01/37

      695         785,739   

Series B, 5.00%, 7/01/42

      1,275         1,422,926   

Village Community Development District No. 10, Special Assessment Bonds,

      

5.13%, 5/01/43

      1,260         1,240,848   
     

 

 

  
        13,946,491   
     

 

 

  

Georgia – 1.3%

      

DeKalb Private Hospital Authority, Refunding RB, Children’s Healthcare,

      

5.25%, 11/15/39

      420         466,460   

Metropolitan Atlanta Rapid Transit Authority, RB, Sales Tax, Third Indenture Series, Series A,

      

5.00%, 7/01/39

      1,740         2,003,471   
     

 

 

  
        2,469,931   
     

 

 

  

Hawaii – 0.4%

      

State of Hawaii Harbor System, RB, Series A,

      

5.25%, 7/01/30

      680         794,335   
     

 

 

  

Idaho – 1.0%

      

Power County Industrial Development Corp., RB, FMC Corp. Project, AMT,

      

6.45%, 8/01/32

      2,000         2,003,420   
     

 

 

  

Illinois – 11.4%

      

Chicago Illinois Board of Education, GO, Series A,

      

5.50%, 12/01/39

      1,060         1,239,151   

Chicago Illinois Transit Authority, RB, Sales Tax Receipts Revenue,

      

5.25%, 12/01/40

      530         606,861   

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

      

Series A, 5.75%, 1/01/39

      2,500         2,944,575   

Series C, 6.50%, 1/01/41

      2,935         3,795,395   

City of Chicago Illinois, GO, Series A,

      

5.00%, 1/01/34

      2,290         2,552,938   

City of Chicago Illinois, Refunding RB, Sales Tax Revenue, Series A,

      

5.25%, 1/01/38

      410         473,025   

City of Chicago Illinois, Special Assessment Bonds, Lake Shore East,

      

6.75%, 12/01/32

      900         921,987   

Illinois Finance Authority, Refunding RB:

      

Ascension Health Alliance, Series A, 5.00%, 11/15/37

      490         557,086   

Ascension Health Alliance, Series A, 5.00%, 11/15/42

      890         1,004,570   

Central DuPage Health, Series B, 5.50%, 11/01/39

      800         908,264   

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project:

      

CAB, Series B-1 (AGM), 4.91%, 6/15/47(a)

      9,555         1,803,602   

Series B-1 (AGM), 5.00%, 6/15/50

      1,585         1,732,326   

Series B-2, 5.00%, 6/15/50

      1,260         1,376,688   

Railsplitter Tobacco Settlement Authority, RB:

      

5.50%, 6/01/23

      675         803,020   

6.00%, 6/01/28

      500         600,455   

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

      

5.25%, 6/15/34

      315         360,930   
     

 

 

  
        21,680,873   
     

 

 

  

Indiana – 3.5%

      

Carmel Redevelopment Authority, Refunding RB, Series A:

      

4.00%, 8/01/35

      575         606,636   

4.00%, 8/01/38

      920         962,210   

Indiana Finance Authority, RB:

      

CWA Authority Project, First Lien, Series A, 5.25%, 10/01/38

      790         915,586   

 

2   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2013    

Schedule of Investments (continued)    BlackRock MuniHoldings Fund II, Inc. (MUH)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

Indiana (concluded)

      

Indiana Finance Authority, RB (concluded):

      

Sisters of St. Francis Health, 5.25%, 11/01/39

    $ 420       $ 463,823   

Indiana Finance Authority, Refunding RB:

      

Community Health Network Project, Series A, 5.00%, 5/01/42

      955         1,051,484   

Parkview Health System, Series A, 5.75%, 5/01/31

      1,660         1,920,354   

Indiana Municipal Power Agency, RB, Series B,

      

6.00%, 1/01/39

      565         676,898   
     

 

 

  
        6,596,991   
     

 

 

  

Iowa – 1.0%

      

Iowa Finance Authority, RB, Alcoa, Inc. Project,

      

4.75%, 8/01/42

      585         594,395   

Iowa Student Loan Liquidity Corp., Refunding RB, Series A-1, AMT,

      

5.15%, 12/01/22

      1,080         1,242,259   
     

 

 

  
        1,836,654   
     

 

 

  

Kansas – 1.1%

      

Kansas Development Finance Authority, Refunding RB:

      

Adventist Health, 5.75%, 11/15/38

      1,105         1,296,264   

Sisters of Leavenworth, Series A, 5.00%, 1/01/40

      785         857,770   
     

 

 

  
        2,154,034   
     

 

 

  

Kentucky – 0.3%

      

Kentucky Economic Development Finance Authority, RB, Owensboro Medical Health System, Series A,

      

6.38%, 6/01/40

      510         607,716   
     

 

 

  

Louisiana – 3.0%

      

East Baton Rouge Sewerage Commission, RB, Series A,

      

5.25%, 2/01/39

      420         483,731   

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Projects,

      

6.75%, 11/01/32

      2,500         2,842,000   

Louisiana Stadium & Exposition District, Refunding RB, Senior, Series A,

      

5.00%, 7/01/36

      175         200,044   

New Orleans Aviation Board, RB, Passenger Facility Charge, Series A,

      

5.25%, 1/01/41

      310         341,660   

State of Louisiana Gasoline & Fuels Tax Revenue, RB, Second Lien, Series B,

      

5.00%, 5/01/45

      1,640         1,854,742   
     

 

 

  
        5,722,177   
     

 

 

  

Maine – 0.4%

      

Maine Health & Higher Educational Facilities Authority, RB, Series A,

      

5.00%, 7/01/39

      150         163,367   

Maine State Turnpike Authority, RB, Series A,

      

5.00%, 7/01/42

      450         517,765   
     

 

 

  
        681,132   
     

 

 

  

Maryland – 1.0%

      

Maryland EDC, RB, Transportation Facilities Project, Series A,

      

5.75%, 6/01/35

      220         251,150   

Maryland EDC, Refunding RB, CNX Marine Terminals, Inc.,

      

5.75%, 9/01/25

      415         463,526   

Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community,

      

6.25%, 1/01/41

      1,095         1,255,932   
     

 

 

  
        1,970,608   
     

 

 

  

Massachusetts – 4.5%

      

Massachusetts Development Finance Agency, RB:

      

Neville Communities, Series A (Ginnie Mae), 5.75%, 6/20/22

      600         632,628   

Neville Communities, Series A (Ginnie Mae), 6.00%, 6/20/44

      1,500         1,581,045   

Wellesley College, Series J, 5.00%, 7/01/42

      915         1,066,588   

Massachusetts Development Finance Agency, Refunding RB, Boston University, Series P,

      

5.45%, 5/15/59

      845         1,013,189   

Massachusetts Health & Educational Facilities Authority, Refunding RB, Partners Healthcare, Series J1,

      

5.00%, 7/01/39

      910         996,022   

Massachusetts HFA, HRB, M/F Housing, Series A, AMT,

      

5.25%, 12/01/48

      2,100         2,134,440   

Massachusetts HFA, Refunding HRB, Series F, AMT,

      

5.70%, 6/01/40

      1,040         1,121,016   
     

 

 

  
        8,544,928   
     

 

 

  

Michigan – 2.5%

      

City of Detroit Michigan Sewage Disposal System Revenue, Refunding RB, Senior Lien, Series B (AGM),

      

7.50%, 7/01/33

      460         574,812   

City of Detroit Michigan Water Supply System, RB, Senior Lien, Series A,

      

5.25%, 7/01/41

      1,555         1,681,157   

 

    BLACKROCK MUNIHOLDINGS FUND II, INC.   JANUARY 31, 2013   3

Schedule of Investments (continued)    BlackRock MuniHoldings Fund II, Inc. (MUH)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

Michigan (concluded)

      

Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital,

      

5.50%, 5/15/36

    $ 690       $ 765,879   

Michigan State Hospital Finance Authority, Refunding RB, Hospital, Henry Ford Health,

      

5.75%, 11/15/39

      1,520         1,737,801   
     

 

 

  
        4,759,649   
     

 

 

  

Minnesota – 1.0%

      

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series A,

      

6.75%, 11/15/32

      1,540         1,872,101   
     

 

 

  

Nebraska – 0.4%

      

Central Plains Energy Project Nebraska, RB, Gas Project No. 3,

      

5.00%, 9/01/42

      730         800,620   
     

 

 

  

New Hampshire – 0.9%

      

New Hampshire Health & Education Facilities Authority, Refunding RB, Dartmouth-Hitchcock,

      

6.00%, 8/01/38

      1,530         1,795,287   
     

 

 

  

New Jersey – 1.9%

      

New Jersey EDA, RB, Continental Airlines Inc. Project, AMT,

      

5.25%, 9/15/29

      990         1,008,879   

New Jersey EDA, Refunding RB, Cigarette Tax,

      

5.00%, 6/15/25

      490         561,599   

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A,

      

5.50%, 6/15/41

      1,025         1,191,183   

Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1-A,

      

4.63%, 6/01/26

      1,000         970,390   
     

 

 

  
        3,732,051   
     

 

 

  

New York – 6.4%

      

Dutchess County Industrial Development Agency New York, Refunding RB, St. Francis Hospital, Series A,

      

7.50%, 3/01/29

      800         820,904   

Long Island Power Authority, Refunding RB, Series A,

      

5.75%, 4/01/39

      1,050         1,250,466   

Metropolitan Transportation Authority, RB, Series E,

      

5.00%, 11/15/42

      275         311,119   

Metropolitan Transportation Authority, Refunding RB:

      

Series B, 5.00%, 11/15/34

      1,270         1,441,602   

Series D, 5.25%, 11/15/40

      610         690,185   

New York City Industrial Development Agency, RB:

      

Continental Airlines Inc. Project, Mandatory Put Bonds, AMT, 8.38%, 11/01/16(b)

      525         527,625   

Series C, 6.80%, 6/01/28

      415         420,378   

New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project,

      

6.38%, 7/15/49

      615         730,823   

New York State Thruway Authority, Refunding RB, Series I,

      

5.00%, 1/01/42

      890         1,002,363   

Port Authority of New York & New Jersey, RB, JFK International Air Terminal:

      

6.00%, 12/01/36

      650         772,707   

6.00%, 12/01/42

      630         748,931   

Sales Tax Asset Receivable Corp., Refunding RB, Series A (AMBAC),

      

5.25%, 10/15/27

      3,200         3,441,888   
     

 

 

  
        12,158,991   
     

 

 

  

North Carolina — 0.4%

      

North Carolina Medical Care Commission, RB, Duke University Health System, Series A,

      

5.00%, 6/01/42

      705         784,256   
     

 

 

  

Oregon — 0.1%

      

City of Tigard Washington County Oregon, Refunding RB, Water System,

      

5.00%, 8/01/37

      125         145,196   
     

 

 

  

Pennsylvania — 2.5%

      

Allegheny County Hospital Development Authority, Refunding RB, Health System, West Penn, Series A,

      

5.38%, 11/15/40

      810         688,484   

Pennsylvania Economic Development Financing Authority, RB:

      

American Water Co. Project, 6.20%, 4/01/39

      1,830         2,139,398   

National Gypsum Co., Series A, AMT, 6.25%, 11/01/27

      1,500         1,499,850   

Philadelphia Authority for Industrial Development, RB, Commercial Development, AMT,

      

7.75%, 12/01/17

      540         540,831   
     

 

 

  
        4,868,563   
     

 

 

  

Puerto Rico — 3.7%

      

Puerto Rico Sales Tax Financing Corp., RB:

      

First Sub-Series A, 6.50%, 8/01/44

      2,790         3,166,985   

Series A, CAB, 5.83%, 8/01/35(a)

      10,000         2,744,500   

Puerto Rico Sales Tax Financing Corp., Refunding RB(a):

      

First Sub-Series C, 5.95%, 8/01/38

      2,145         480,952   

 

4   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2013    

Schedule of Investments (continued)    BlackRock MuniHoldings Fund II, Inc. (MUH)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

Puerto Rico (concluded)

      

Puerto Rico Sales Tax Financing Corp., Refunding RB (a) (concluded): Series C,

      

5.57%, 8/01/39

    $ 2,800       $ 652,960   
     

 

 

  
        7,045,397   
     

 

 

  

South Carolina – 1.0%

      

South Carolina State Ports Authority, RB,

      

5.25%, 7/01/40

      1,650         1,860,095   
     

 

 

  

South Dakota – 0.3%

      

South Dakota Health and Educational Facilities Authority, RB, Series E,

      

5.00%, 11/01/42

      540         592,353   
     

 

 

  

Tennessee – 1.1%

      

Hardeman County Correctional Facilities Corp. Tennessee, RB, Series B,

      

7.38%, 8/01/17

      1,900         1,905,320   

Rutherford County Health & Educational Facilities Board, RB, Ascension Health, Series C,

      

5.00%, 11/15/47

      105         118,945   
     

 

 

  
        2,024,265   
     

 

 

  

Texas – 10.3%

      

Brazos River Harbor Navigation District, Refunding RB, Dow Chemical Co. Project, Series A7, AMT,

      

6.63%, 5/15/33

      2,500         2,522,800   

Central Texas Regional Mobility Authority, Refunding RB, Senior Lien,

      

6.25%, 1/01/46

      1,070         1,262,161   

City of Austin Texas, Refunding RB, Water & Wastewater System Revenue,

      

5.00%, 11/15/37

      315         368,084   

City of Dallas Texas Waterworks & Sewer System, Refunding RB,

      

5.00%, 10/01/35

      760         875,748   

City of Houston Texas Airport System, Refunding ARB, Series A,

      

5.50%, 7/01/39

      535         619,054   

Dallas/Fort Worth International Airport, Refunding RB, Series E, AMT,

      

5.00%, 11/01/35

      1,310         1,431,149   

Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B,

      

7.25%, 12/01/35

      1,380         1,719,245   

La Vernia Higher Education Finance Corp., RB, KIPP Inc., Series A,

      

6.38%, 8/15/44

      320         374,778   

Midland County Fresh Water Supply District No 1, RB, City of Midland Project, Series A, CAB(a):

      

4.77%, 9/15/40

      2,525         686,320   

4.80%, 9/15/41

      1,395         358,822   

North Texas Tollway Authority, RB, CAB, Special Projects System, Series B,

      

5.12%, 9/01/37(a)

      1,015         293,030   

North Texas Tollway Authority, Refunding RB, Toll, Second Tier, Series F,

      

6.13%, 1/01/31

      3,020         3,339,486   

Texas Municipal Gas Acquisition & Supply Corp. III, RB,

      

5.00%, 12/15/29

      960         1,047,523   

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:

      

LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40

      1,165         1,417,386   

NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39

      1,300         1,555,060   

University of Texas System, Refunding RB, Financing System, Series B,

      

5.00%, 8/15/43

      1,555         1,826,814   
     

 

 

  
        19,697,460   
     

 

 

  

Utah – 0.6%

      

County of Utah, RB, IHC Health Services, Inc.,

      

5.00%, 5/15/43

      1,020         1,150,325   
     

 

 

  

Vermont – 0.00%

      

Vermont Educational & Health Buildings Financing Agency, RB, Developmental & Mental Health, Series A,

      

6.50%, 6/15/32

      80         81,158   
     

 

 

  

Virginia – 2.5%

      

Fairfax County EDA, Refunding RB, Goodwin House Inc.,

      

5.13%, 10/01/42

      2,500         2,590,500   

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings Project, AMT:

      

5.25%, 1/01/32

      400         438,240   

6.00%, 1/01/37

      925         1,063,454   

5.50%, 1/01/42

      585         638,867   
     

 

 

  
        4,731,061   
     

 

 

  

Washington – 0.5%

      

Seattle Housing Authority Washington, RB, Replacement Housing Projects,

      

6.13%, 12/01/32

      890         890,579   
     

 

 

  

Wisconsin – 3.0%

      

State of Wisconsin, General Fund Annual Appropriation Revenue, RB, Series A,

      

6.00%, 5/01/36

      3,620         4,422,337   

 

    BLACKROCK MUNIHOLDINGS FUND II, INC.   JANUARY 31, 2013   5

Schedule of Investments (continued)    BlackRock MuniHoldings Fund II, Inc. (MUH)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

Wisconsin (concluded)

      

Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Senior Credit Group,

      

5.00%, 11/15/33

    $ 1,235       $ 1,400,613   
        5,822,950   
     

 

 

  

Total Municipal Bonds – 101.8%

         194,340,876   
     

 

 

  

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

      

Arizona – 0.7%

      

Salt River Project Agricultural Improvement & Power District, RB, Series A,

      

5.00%, 1/01/38

      1,220         1,387,996   
     

 

 

  

California – 10.7%

      

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area, Series F-1,

      

5.63%, 4/01/44

      1,640         1,903,971   

California Educational Facilities Authority, RB, University of Southern California, Series B,

      

5.25%, 10/01/39(d)

      1,335         1,563,191   

City of Los Angeles California Department of Airports, Refunding RB, Senior, Los Angeles International Airport, Series A,

      

5.00%, 5/15/40

      2,980         3,371,587   

Los Angeles Community College District California, GO, Election of 2001, Series A (AGM),

      

5.00%, 8/01/32

      1,170         1,338,000   

San Diego Community College District California, GO, Election of 2002,

      

5.25%, 8/01/33

      553         672,668   

San Francisco City & County Public Utilities Commission, RB, Series B,

      

5.00%, 11/01/39

      4,770         5,412,710   

Sequoia Union High School District California, GO, Refunding, Election of 2004, Series B (AGM),

      

5.50%, 7/01/35

      5,519         6,202,495   
     

 

 

  
        20,464,622   
     

 

 

  

Colorado – 2.4%

      

Colorado Health Facilities Authority, RB, Catholic Health:

      

Series C-3 (FSA), 5.10%, 10/01/41

      1,870         2,039,385   

Series C-7 (AGM), 5.00%, 9/01/36

      1,200         1,292,076   

Colorado Health Facilities Authority, Refunding RB, Catholic Health, Series A,

      1,080         1,236,216   

5.50%, 7/01/34(d)

      
     

 

 

  
        4,567,677   
     

 

 

  

Connecticut – 2.8%

      

Connecticut State Health & Educational Facility Authority, RB, Yale University:

      

Series T-1, 4.70%, 7/01/29

      2,300         2,586,097   

Series X-3, 4.85%, 7/01/37

      2,362         2,668,214   
     

 

 

  
        5,254,311   
     

 

 

  

Florida – 1.7%

      

County of Miami-Dade Florida, RB, Water & Sewer System,

      

5.00%, 10/01/34

      2,840         3,213,392   
     

 

 

  

Georgia – 1.0%

      

Private Colleges & Universities Authority, Refunding RB, Emory University, Series C,

      

5.00%, 9/01/38

      1,649         1,877,659   
     

 

 

  

Illinois – 2.2%

      

City of Chicago Illinois Waterworks, Refunding RB,

      

5.00%, 11/01/42

      3,638         4,114,715   
     

 

 

  

Maryland – 1.2%

      

Maryland Health & Higher Educational Facilities Authority, RB, Series B,

      

5.00%, 11/15/51

      2,100         2,349,900   
     

 

 

  

Massachusetts – 3.1%

      

Massachusetts School Building Authority, RB:

      

Senior Series B, 5.00%, 10/15/41

      2,280         2,628,886   

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

      387         425,268   

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

      2,613         2,874,797   
     

 

 

  
        5,928,951   
     

 

 

  

Michigan – 0.8%

      

Detroit Water and Sewerage Department, Refunding RB, Series A:

      

5.00%, 7/01/32

      788         852,617   

5.25%, 7/01/39

      675         734,799   
     

 

 

  
        1,587,416   
     

 

 

  

New Hampshire – 0.6%

      

New Hampshire Health & Education Facilities Authority, RB, Dartmouth College,

      

5.25%, 6/01/39(d)

      1,019         1,199,901   
     

 

 

  

New Jersey – 0.7%

      

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B,

      

5.25%, 6/15/36

      1,240         1,421,437   
     

 

 

  

New York – 10.6%

  

Hudson New York Yards Infrastructure Corp., RB,

      

5.75%, 2/15/47

      810         966,496   

New York City Municipal Water Finance Authority, Refunding RB, Series FF-2,

      

5.50%, 6/15/40

      810         955,835   

 

6   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2013    

Schedule of Investments (continued)    BlackRock MuniHoldings Fund II, Inc. (MUH)
   (Percentages shown are based on Net Assets)

 

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

    Par
(000)		      Value  

New York (concluded)

      

New York City Transitional Finance Authority, RB:

      

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

    $ 3,299       $ 3,703,276   

Future Tax Secured Revenue, Sub-Series E-1, 5.00%, 2/01/42

      1,240         1,424,559   

New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Construction,

      

5.25%, 12/15/43

      5,400         6,212,831   

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project,

      

5.75%, 11/15/51

      3,250         3,855,735   

New York State Dormitory Authority, ERB, Series F,

      

5.00%, 3/15/35

      2,910         3,141,938   
     

 

 

  
        20,260,670   
     

 

 

  

North Carolina – 0.5%

      

North Carolina Capital Facilities Finance Agency, Refunding RB, Wake Forest University,

      

5.00%, 1/01/38

      800         904,648   
     

 

 

  

Ohio – 4.3%

      

State of Ohio, Refunding RB, Cleveland Clinic Health, Series A,

      

5.50%, 1/01/39

      6,974         8,113,664   
     

 

 

  

Tennessee – 1.4%

      

Shelby County Health Educational & Housing Facilities Board, Refunding RB, St. Jude’s Children’s Research Hospital,

      

5.00%, 7/01/31

      2,500         2,741,250   
     

 

 

  

Texas – 3.0%

      

County of Harris Texas, RB, Senior Lien, Toll Road, Series A,

      

5.00%, 8/15/38(d)

      3,360         3,841,992   

Harris County Texas Metropolitan Transit Authority, Refunding RB, Series A,

      

5.00%, 11/01/41

      1,710         1,958,651   
     

 

 

  
        5,800,643   
     

 

 

  

Utah – 0.8%

      

City of Riverton Utah Hospital, RB, IHC Health Services Inc.,

      

5.00%, 8/15/41

      1,395         1,543,428   
     

 

 

  

Virginia – 2.6%

      

University of Virginia, Refunding RB, General,

      

5.00%, 6/01/40

      2,729         3,147,102   

Virginia Small Business Financing Authority, Refunding RB, Sentara Healthcare,

      

5.00%, 11/01/40

      1,553         1,717,233   
     

 

 

  
        4,864,335   
     

 

 

  

Washington – 0.8%

      

Central Puget Sound Regional Transit Authority, RB, Series A (AGM),

      

5.00%, 11/01/32

      1,365         1,547,239   
     

 

 

  

Wisconsin – 1.7%

      

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc.,

      

5.25%, 4/01/39(d)

      2,859         3,178,156   
     

 

 

  

Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts – 53.6%

         102,322,010   
     

 

 

  

Total Long-Term Investments
(Cost – $264,718,143) – 155.4%

         296,662,886   
     

 

 

  

Short-Term Securities

   
Shares		         

Money Market Funds – 1.6%

      

FFI Institutional Tax-Exempt Fund,

      

0.01%(f)(g)

      3,162,701         3,162,701   
     

 

 

  

Total Short-Term Securities
(Cost – $3,162,701) – 1.6%

         3,162,701   
     

 

 

  

Total Investments
(Cost – $267,880,844*) – 157.0%

         299,825,587   

Other Assets Less Liabilities – 1.0%

         1,907,249   

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable – (29.2)%

         (55,803,826 ) 

VMTP Shares, at Liquidation Value – (28.8)%

         (55,000,000 ) 
     

 

 

  

Net Assets Applicable to Common Shares– 100.0%

       $ 190,929,010   
     

 

 

  

 

* As of January 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cast for federal income tax purposes were as follows:

 

Tax cost

    $ 212,368,938   
  

 

 

  

Gross unrealized appreciation

    $ 32,364,341   

Gross unrealized depreciation

      (687,808 ) 
  

 

 

  

Net unrealized appreciation

    $ 31,676,533   
  

 

 

  

 

 

    BLACKROCK MUNIHOLDINGS FUND II, INC.   JANUARY 31, 2013   7

Schedule of Investments (continued)    BlackRock MuniHoldings Fund II, Inc. (MUH)
  

 

Notes to Schedule of Investments

 

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

 

(b) Variable rate security. Rate shown is as of report date.

 

(c) 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.

 

(d) 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. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements is $5,218,584.

 

(e) 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.

 

(f) Investments in issuers considered to be an affiliate of the Fund during the period ended January 31, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate

    Shares
Held at
April  30,
2012		      Net Activity      Shares
Held at
January 31,
2013		      Income  

FFI Institutional Tax-Exempt Fund

      27,550         3,135,151         3,162,701       $ 14   

 

(g) 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
  CAB   Capital Appreciation Bonds
  COP   Certificates of Participation
  EDA   Economic Development Authority
  EDC   Economic Development Corp.
  ERB   Education Revenue Bonds
  FSA   Financial Security Assurance, Inc.
  GARB   General Airport Revenue Bonds
  Ginnie Mae   Government National Mortgage Association
  GO   General Obligation Bonds
  HFA   Housing Finance Agency
  HRB   Housing Revenue Bonds
  IDA   Industrial Development Authority
  M/F   Multi-Family
  NPFGC   National Public Finance Guarantee Corp.
  RB   Revenue Bonds

 

8   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2013    

Schedule of Investments (concluded)    BlackRock MuniHoldings Fund II, Inc. (MUH)
  

 

•  

Fair Value Measurements – Various inputs are used in determining the fair value of investments. These inputs to valuation techniques 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 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)

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 level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

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 is based on the pricing transparency of the investment 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 other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its semi-annual report.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy as of January 31, 2013:

 

      Level 1      Level 2      Level 3      Total  

Assets:

            

Investments:

            

Long-Term Investments1

      –       $ 296,662,886         –       $ 296,662,886   

Short-Term Securities

    $ 3,162,701         –         –         3,162,701   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 3,162,701       $ 296,662,886         –       $ 299,825,587   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

1 

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

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of January 31, 2013, such liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1      Level 2     Level 3      Total  

Liabilities:

           

Bank overdraft

      –       $ (78,139 )      –       $ (78,139 ) 

TOB trust certificates

      –         (55,780,116 )      –         (55,780,116 ) 

VMTP shares

      –         (55,000,000 )      –         (55,000,000 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

      –       $ (110,858,255 )      –       $ (110,858,255 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

There were no transfers between levels during the period ended January 31, 2013.

 

    BLACKROCK MUNIHOLDINGS FUND II, INC.   JANUARY 31, 2013   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 Fund II, Inc.

    
By:  

/s/ John M. Perlowski

    
  John M. Perlowski    
  Chief Executive Officer (principal executive officer) of  
  BlackRock MuniHoldings Fund II, Inc.    

Date: March 26, 2013

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 Fund II, Inc.  
Date: March 26, 2013    
By:  

/s/ Neal J. Andrews

    
  Neal J. Andrews    
  Chief Financial Officer (principal financial officer) of  
  BlackRock MuniHoldings Fund II, Inc.  

Date: March 26, 2013