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: 04/30/2014

Date of reporting period: 01/31/2014

Item 1 – Schedule of Investments

Schedule of Investments January 31, 2014 (Unaudited)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

Alabama — 4.0%

                 

County of Jefferson Alabama Sewer, Refunding RB:

     

Convertible CAB, Senior Lien, Series C (AGM), 0.00%, 10/01/38 (a)

    $ 310      $ 174,381   

Convertible CAB, Senior Lien, Series C (AGM), 0.00%, 10/01/42 (a)

      270        149,918   

Senior Lien, Series A (AGM), 5.00%, 10/01/44

      420        409,047   

Senior Lien, Series A (AGM), 5.25%, 10/01/48

      805        792,305   

Sub-Lien, Series D, 6.00%, 10/01/42

      1,875        1,849,556   

County of Jefferson Alabama, Limited Obligation School, RB, Series A, 5.00%, 1/01/24

      3,450        3,376,515   
    

 

 

  
               6,751,722   

Alaska — 0.7%

     

Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 5.00%, 6/01/46

      1,660        1,144,321   

Arizona — 1.2%

     

City of Show Low Arizona, Special Assessment Bonds, Improvement District No. 5, 6.38%, 1/01/15

      10        10,147   

Phoenix IDA Arizona, Refunding RB, America West Airlines, Inc. Project, AMT, 6.30%, 4/01/23

      2,060        2,060,288   
    

 

 

  
               2,070,435   

California — 17.7%

     

Benicia Unified School District, GO, CAB, Series A (NPFGC), 0.00%, 8/01/20 (b)

      2,000        1,681,020   

California Health Facilities Financing Authority, RB:

     

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

      1,110        1,243,866   

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

      1,585        1,821,862   

California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 7/01/33

      635        668,096   
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

                 

California Pollution Control Financing Authority, RB:

     

County of San Diego California Water Authority Desalination Project Pipeline, 5.00%, 11/21/45

    $ 620      $ 577,133   

Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 7/01/37 (c)

      515        467,455   

Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45 (c)

      1,295        1,136,790   

California State Public Works Board, RB, Various Capital Projects:

     

Series I, 5.00%, 11/01/38

      405        420,811   

Sub-Series I-1, 6.38%, 11/01/34

      600        694,734   

California Statewide Communities Development Authority, RB, John Muir Health, Series A, 5.13%, 7/01/39

      1,090        1,119,746   

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

     

5.00%, 5/15/42

      100        94,225   

5.00%, 5/15/47

      185        172,973   

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A, 5.25%, 5/15/39

      400        431,080   

City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/38

      185        200,181   

San Diego Community College District California, GO, Election of 2006, 5.00%, 8/01/43

      545        579,744   

San Diego Unified School District California, GO, CAB, Election of 2008, Series A, 0.00%, 7/01/29 (b)

      2,525        1,281,109   

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

     

0.00%, 7/01/17

      1,820        1,737,645   

0.00%, 7/01/18

      1,945        1,808,053   

0.00%, 7/01/19

      2,070        1,868,465   

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2014    1

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

California (concluded)

                 

State of California, GO, Various Purposes:

     

6.00%, 3/01/33

    $ 1,265      $ 1,479,924   

6.50%, 4/01/33

      7,325        8,791,612   

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1, 4.75%, 6/01/25

      1,640        1,567,938   
    

 

 

  
               29,844,462   

Colorado — 1.9%

     

Colorado Educational & Cultural Facilities Authority, RB, Charter School, Colorado Springs, 5.50%, 7/01/40

      1,055        1,029,121   

Colorado State Board of Governors, Refunding RB, State University System Enterprise, Series A, 5.00%, 3/01/43

      595        656,356   

Regional Transportation District, COP, Refunding, Series A, 5.38%, 6/01/31

      510        547,832   

University of Colorado, RB, Series A, 5.38%, 6/01/38

      920        1,025,395   
    

 

 

  
               3,258,704   

Connecticut — 1.6%

     

Connecticut State Health & Educational Facility Authority, RB, Ascension Health Senior Credit, Series A, 5.00%, 11/15/40

      685        713,572   

Connecticut State Health & Educational Facility Authority, Refunding RB, Wesleyan University, Series G, 5.00%, 7/01/35

      1,875        2,004,206   
    

 

 

  
               2,717,778   

Delaware — 1.5%

     

County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40

      570        598,090   

Delaware State EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45

      2,050        2,011,603   
    

 

 

  
               2,609,693   
Municipal Bonds   

Par  

(000)

     Value  

District of Columbia — 2.6%

                 

Metropolitan Washington Airports Authority, Refunding RB:

     

1st Senior Lien, Series A, 5.00%, 10/01/39

    $ 255      $ 261,428   

1st Senior Lien, Series A, 5.25%, 10/01/44

      1,000        1,027,020   

CAB, 2nd Senior Lien, Series B (AGC), 0.00%, 10/01/34 (b)

      10,170        3,176,905   
    

 

 

  
               4,465,353   

Florida — 6.6%

     

Ballantrae Community Development District, Special Assessment Bonds, 6.00%, 5/01/35

      1,465        1,440,666   

City of Clearwater Florida Water & Sewer Revenue, RB, Series A, 5.25%, 12/01/39

      1,725        1,828,742   

County of Broward Florida Water & Sewer Utility, Refunding RB, Series A, 5.25%, 10/01/34

      545        599,565   

County of Hillsborough Florida IDA, RB, National Gypsum Co., Series B, AMT, 7.13%, 4/01/30

      1,380        1,380,207   

County of Miami-Dade Florida, RB, CAB, Series A (NPFGC), 0.00%, 10/01/37 (b)

      1,765        468,890   

County of Tampa-Hillsborough Florida Expressway Authority, Refunding RB, Series A, 5.00%, 7/01/37

      1,025        1,067,097   

Mid-Bay Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/40

      1,525        1,688,953   

Palm Coast Park Community Development District, Special Assessment Bonds, 5.70%, 5/01/37

      475        301,611   

Preserve at Wilderness Lake Community Development District, Special Assessment Bonds, Series A, 5.90%, 5/01/14 (d)

      1,165        1,192,657   

Village Community Development District No. 10, Special Assessment Bonds, 5.13%, 5/01/43

      1,260        1,179,410   
    

 

 

  
               11,147,798   

Georgia — 1.3%

     

DeKalb Private Hospital Authority, Refunding RB, Children’s Healthcare, 5.25%, 11/15/39

      420        435,868   

 

                
2    BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2014   

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

Georgia (concluded)

     

Metropolitan Atlanta Rapid Transit Authority, RB, Sales Tax, 3rd Indenture, Series A, 5.00%, 7/01/39

    $ 1,740      $ 1,822,197   
    

 

 

  
               2,258,065   

Hawaii — 0.4%

     

State of Hawaii Harbor System, RB, Series A, 5.25%, 7/01/30

      680        739,690   

Idaho — 1.2%

     

County of Power Idaho Industrial Development Corp., RB, FMC Corp. Project, AMT, 6.45%, 8/01/32

      2,000        2,002,020   

Illinois — 14.3%

     

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

     

Series A, 5.75%, 1/01/39

      2,500        2,647,325   

Series C, 6.50%, 1/01/41

      2,935        3,343,992   

City of Chicago Illinois, GO, Project, Series A, 5.00%, 1/01/34

      2,290        2,289,909   

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

      410        425,297   

City of Chicago Illinois, Special Assessment Bonds, Lake Shore East, 6.75%, 12/01/32

      600        608,196   

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40

      530        545,730   

City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42

      3,645        3,665,266   

County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38

      410        440,242   

Illinois Finance Authority, Refunding RB:

     

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

      890        906,608   

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

      800        861,144   

Illinois State Toll Highway Authority, RB, Series A, 5.00%, 1/01/38

      1,165        1,198,727   
Municipal Bonds    Par  
(000)		     Value  

Illinois (concluded)

     

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

     

CAB, Series B (AGM), 0.00%, 6/15/47 (b)

    $ 9,555      $ 1,381,366   

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

      1,585        1,585,301   

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

      1,260        1,235,090   

Railsplitter Tobacco Settlement Authority, RB:

     

5.50%, 6/01/23

      230        257,400   

6.00%, 6/01/28

      500        554,600   

State of Illinois, GO, Series A, 5.00%, 4/01/38

      1,920        1,928,275   

State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/34

      315        329,203   
    

 

 

  
               24,203,671   

Indiana — 5.3%

     

Carmel Redevelopment Authority, Refunding RB, Multipurpose, Series A:

     

4.00%, 8/01/35

      190        184,393   

4.00%, 2/01/38

      920        869,704   

City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:

     

6.75%, 1/01/34

      415        430,757   

7.00%, 1/01/44

      1,000        1,044,970   

Indiana Finance Authority, RB, Series A:

     

CWA Authority Project, 1st Lien, 5.25%, 10/01/38

      1,660        1,768,664   

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/44

      225        211,939   

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/48

      740        689,547   

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

      420        434,482   

Indiana Finance Authority, Refunding RB, Parkview Health System, Series A, 5.75%, 5/01/31

      1,660        1,773,527   

Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39

      565        622,376   

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2014    3

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

Indiana (concluded)

     

Indianapolis Local Public Improvement Bond Bank, RB, Series A:

     

5.00%, 1/15/36

    $ 200      $ 212,450   

5.00%, 1/15/40

      640        672,998   
    

 

 

  
               8,915,807   

Iowa — 1.7%

     

Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project:

     

5.00%, 12/01/19

      485        479,180   

5.50%, 12/01/22

      1,175        1,132,724   

5.25%, 12/01/25

      230        213,488   

Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, Senior Series A-1, AMT, 5.15%, 12/01/22

      945        993,393   
    

 

 

  
               2,818,785   

Kansas — 0.7%

     

Kansas Development Finance Authority, Refunding RB, Adventist Health, Series C, 5.75%, 11/15/38

      1,105        1,208,748   

Kentucky — 0.5%

     

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45

      520        531,492   

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 0.00%, 7/01/43 (a)

      635        357,365   
    

 

 

  
               888,857   

Louisiana — 3.4%

     

East Baton Rouge Sewerage Commission, RB, Series A, 5.25%, 2/01/39

      420        449,866   

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, 6.75%, 11/01/32

      2,500        2,667,025   

New Orleans Aviation Board, RB, Passenger Facility Charge, Series A, 5.25%, 1/01/41

      310        318,383   
Municipal Bonds    Par  
(000)		     Value  

Louisiana (concluded)

     

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:

     

5.50%, 5/15/30

    $ 510      $ 521,230   

5.25%, 5/15/31

      435        436,662   

5.25%, 5/15/32

      555        555,877   

5.25%, 5/15/33

      600        599,592   

5.25%, 5/15/35

      255        253,847   
    

 

 

  
               5,802,482   

Maine — 0.1%

     

Maine Health & Higher Educational Facilities Authority, RB, Series A, 5.00%, 7/01/39

      150        154,802   

Maryland — 1.2%

     

Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 6/01/35

      220        224,574   

Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25

      605        634,306   

Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project,
6.25%, 1/01/41

      1,095        1,162,978   
    

 

 

  
               2,021,858   

Massachusetts — 5.0%

     

Massachusetts Development Finance Agency, Refunding RB, Boston University, Series P, 5.45%, 5/15/59

      845        889,979   

Massachusetts Health & Educational Facilities Authority, Refunding RB, Partners Healthcare System, Series J1,
5.00%, 7/01/39

      360        370,998   

Massachusetts HFA, RB, M/F Housing, Series A, AMT, 5.25%, 12/01/48

      2,100        2,101,995   

Massachusetts HFA, Refunding RB, Series F, AMT, 5.70%, 6/01/40

      990        1,020,640   

Massachusetts School Building Authority, RB, Series A:

     

(AGM), 5.00%, 8/15/15 (d)

      385        413,117   

(AGM), 5.00%, 8/15/15 (d)

      2,475        2,655,749   

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

      140        147,973   

 

                
4    BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2014   

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

 

Municipal Bonds   

Par  

(000)

     Value  

Massachusetts (concluded)

  

Massachusetts School Building Authority, RB, Series A (concluded):

     

Dedicated Sales Tax, Senior, 5.00%, 5/15/43

    $ 710      $ 758,905   
    

 

 

  
               8,359,356   

Michigan — 3.3%

     

City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien:

     

Series A, 5.00%, 7/01/32

      790        721,515   

Series A, 5.25%, 7/01/39

      2,235        2,062,480   

Series B (AGM), 7.50%, 7/01/33

      460        490,273   

Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital, 5.50%, 5/15/36

      690        714,005   

State of Michigan Hospital Finance Authority, Refunding RB, Henry Ford Health, 5.75%, 11/15/39

      1,520        1,565,782   
    

 

 

  
               5,554,055   

Minnesota — 1.1%

     

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series A, 6.75%, 11/15/32

      1,540        1,785,769   

Missouri — 0.2%

     

Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44

      125        131,360   

State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 5/01/43

      130        133,979   
    

 

 

  
               265,339   

New Hampshire — 1.0%

     

New Hampshire Health & Education Facilities Authority, Refunding RB, Dartmouth-Hitchcock, 6.00%, 8/01/38

      1,530        1,664,778   

New Jersey — 3.6%

     

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

     

5.13%, 9/15/23

      1,040        1,011,098   

5.25%, 9/15/29

      990        952,875   
Municipal Bonds    Par  
(000)		     Value  

New Jersey (concluded)

                 

New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 4/01/31

    $ 1,125      $ 1,164,769   

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

     

Series A, 5.50%, 6/15/41

      1,025        1,089,965   

Series B, 5.25%, 6/15/36

      1,235        1,313,200   

Rutgers - The State University of New Jersey, Refunding RB, Series L:

     

5.00%, 5/01/38

      255        275,563   

5.00%, 5/01/43

      265        283,190   
    

 

 

  
               6,090,660   

New York — 6.7%

     

City of New York New York Transitional Finance Authority, Future Tax Secured Bonds, RB, Fiscal 2012, Sub-Series E-1, 5.00%, 2/01/42

      1,240        1,305,956   

County of Dutchess New York IDA, Refunding RB, St. Francis Hospital, Series A, 7.50%, 3/01/29

      800        629,744   

Long Island Power Authority, Refunding RB, Electric System, Series A, 5.75%, 4/01/39

      1,050        1,162,570   

Metropolitan Transportation Authority, Refunding RB, Dedicated Tax Fund, Series B, 5.00%, 11/15/34

      1,270        1,338,326   

New York Liberty Development Corp., Refunding RB, 2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49

      615        657,749   

New York State Dormitory Authority, Refunding RB, General Purpose, Series A, 5.00%, 6/15/31

      895        982,280   

Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8:

     

6.00%, 12/01/36

      650        704,775   

6.00%, 12/01/42

      630        681,937   

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

      3,200        3,302,784   

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2014    5

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

 

Municipal Bonds    Par  
(000)		     Value  

New York (concluded)

                 

Utility Debt Securitization Authority, Refunding RB, Restructuring, Series E, 5.00%, 12/15/41

    $ 565      $ 608,771   
    

 

 

  
               11,374,892   

North Carolina — 0.6%

     

North Carolina Medical Care Commission, RB, Health Care Facilities, Duke University Health System, Series A, 5.00%, 6/01/42

      705        750,522   

North Carolina Medical Care Commission, Refunding RB, Retirement Facilities, 1st Mortgage, Whitestone Project, Series A,
7.75%, 3/01/41

      305        323,507   
    

 

 

  
               1,074,029   

Ohio — 0.2%

     

County of Franklin Ohio, RB, Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 7/01/40

      350        352,779   

Pennsylvania — 2.4%

     

City of Philadelphia Pennsylvania Industrial Development, RB, Commercial Development, AMT, 7.75%, 12/01/17

      540        541,345   

Pennsylvania Economic Development Financing Authority, RB:

     

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

      1,830        2,004,856   

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

      1,500        1,492,980   
    

 

 

  
               4,039,181   

South Carolina — 1.0%

     

South Carolina State Ports Authority, RB, 5.25%, 7/01/40

      1,650        1,730,421   

Tennessee — 1.4%

     

City of Chattanooga Tennessee Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A,
5.25%, 1/01/45

      720        735,912   
Municipal Bonds    Par  
(000)		     Value  

Tennessee (concluded)

                 

County of Hardeman Tennessee Correctional Facilities Corp., RB, Series B, 7.38%, 8/01/17

    $ 1,575      $ 1,577,977   
    

 

 

  
               2,313,889   

Texas — 7.9%

     

Central Texas Regional Mobility Authority, Refunding RB:

     

Senior Lien, 6.25%, 1/01/46

      1,070        1,119,659   

Sub-Lien, 5.00%, 1/01/33

      180        168,847   

Sub-Lien, 5.00%, 1/01/42

      160        143,614   

City of Dallas Texas Waterworks & Sewer System, Refunding RB, 5.00%, 10/01/35

      260        282,394   

City of Houston Texas Airport System, Refunding ARB, Senior Lien, Series A, 5.50%, 7/01/39

      535        590,282   

County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 1/01/48

      240        242,513   

County of Harris Texas Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.25%, 12/01/18 (d)

      1,380        1,777,233   

County of Matagorda Texas Navigation District No. 1, Refunding RB, AEP Texas Central Co. Project, Series 1, 4.00%, 6/01/30

      540        490,876   

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

     

0.00%, 9/15/40

      2,525        674,024   

0.00%, 9/15/41

      1,395        343,184   

Dallas-Fort Worth International Airport, Refunding ARB, Joint Improvement, Series E, AMT, 5.00%, 11/01/35

      910        916,670   

La Vernia Higher Education Finance Corp., RB, Kipp, Inc., Series A, 6.38%, 8/15/44

      320        343,446   

North Texas Tollway Authority, RB, CAB, Special Project System, Series B, 0.00%, 9/01/37 (b)

      1,015        261,829   

North Texas Tollway Authority, Refunding RB, 2nd Tier System, Series F, 6.13%, 1/01/31

      3,020        3,211,861   

 

                
6    BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2014   

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

Texas (concluded)

  

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      $ 1,287,115   

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

      1,300        1,418,937   
    

 

 

  
               13,272,484   

Utah — 0.6%

     

County of Utah Utah, RB, IHC Health Services, Inc., 5.00%, 5/15/43

      1,020        1,060,321   

Vermont — 0.1%

     

Vermont Educational & Health Buildings Financing Agency, RB, 6.50%, 6/15/32

      80        80,863   

Virginia — 3.2%

     

County of Fairfax Virginia EDA, Refunding RB, Goodwin House, Inc., 5.13%, 10/01/42

      2,500        2,516,825   

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

     

5.25%, 1/01/32

      400        399,980   

6.00%, 1/01/37

      2,325        2,429,416   
    

 

 

  
               5,346,221   

Washington — 0.8%

     

Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 1/01/45

      1,195        1,272,938   

Wisconsin — 3.2%

     

State of Wisconsin, Refunding RB, Series A, 6.00%, 5/01/36

      3,620        4,070,147   

State of Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Senior Credit Group, Series E,
5.00%, 11/15/33

      1,235        1,301,443   
    

 

 

  
               5,371,590   
Total Municipal Bonds — 110.2%              186,034,616   

Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts (e)

    Par  
(000)		     Value  

California — 11.4%

     

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area, Series F-1, 5.63%, 4/01/44

    $ 1,640      $ 1,775,412   

California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (f)

      1,335        1,460,584   

City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/39

      4,770        5,078,285   

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

      2,968        3,112,942   

Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/32

      1,170        1,253,608   

San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33

      553        621,201   

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

      5,519        5,926,384   
    

 

 

  
               19,228,416   

Colorado — 2.6%

     

Colorado Health Facilities Authority, RB, Catholic Health (AGM):

     

Series C-3, 5.10%, 10/01/41

      1,870        1,899,789   

Series C-7, 5.00%, 9/01/36

      1,200        1,219,644   

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A, 5.50%, 7/01/34 (f)

      1,080        1,197,800   
    

 

 

  
               4,317,233   

Connecticut — 2.9%

     

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

     

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

      2,299        2,467,229   

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2014    7

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 (e)		    Par  
(000)		     Value  

Connecticut (concluded)

     

Connecticut State Health & Educational Facility Authority, RB, Yale University (concluded): Series X-3, 4.85%, 7/01/37

    $ 2,362      $ 2,521,540   
    

 

 

  
               4,988,769   

Florida — 1.8%

     

County of Miami-Dade Florida, RB, Water & Sewer System, 5.00%, 10/01/34

      2,840        2,999,071   

Georgia — 1.0%

     

Private Colleges & Universities Authority, Refunding RB, Emory University, Series C, 5.00%, 9/01/38

      1,649        1,748,465   

Massachusetts — 2.0%

     

Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41

      3,211        3,411,057   

New Hampshire — 0.7%

     

New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (f)

      1,019        1,132,200   

New York — 8.6%

     

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 6/15/40

      810        872,105   

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

      3,299        3,554,050   

Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (f)

      810        875,206   

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

      5,400        5,742,954   

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

      3,250        3,505,320   
    

 

 

  
               14,549,635   

Municipal Bonds Transferred to Tender Option Bond

(TOB) Trusts (e)

    Par  
(000)		     Value  

North Carolina — 0.5%

     

North Carolina Capital Facilities Finance Agency, Refunding RB, Wake Forest University, 5.00%, 1/01/38

    $ 800      $ 845,600   

Ohio — 4.6%

     

State of Ohio, Refunding RB, Cleveland Clinic Health System Obligated Group, Series A, 5.50%, 1/01/39

      6,974        7,698,094   

Tennessee — 1.6%

     

County of Shelby Tennessee Health Educational & Housing Facilities Board, Refunding RB, St. Jude’s Children’s Research Hospital, 5.00%, 7/01/31

      2,500        2,645,650   

Texas — 5.2%

     

City of San Antonio Texas Public Service Board, RB, Electric & Gas Systems, Junior Lien, 5.00%, 2/01/43

      1,260        1,321,412   

County of Harris Texas, RB, Senior Lien, Toll Road, Series A, 5.00%, 8/15/38 (f)

      3,363        3,674,300   

County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41

      1,710        1,813,523   

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

      1,800        1,928,139   
    

 

 

  
               8,737,374   

Utah — 0.8%

     

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

      1,394        1,438,974   

Virginia — 2.7%

     

University of Virginia, Refunding RB, General, 5.00%, 6/01/40

      2,729        2,974,093   

Virginia Small Business Financing Authority, Refunding RB, Sentara Healthcare, 5.00%, 11/01/40

      1,553        1,605,589   
    

 

 

  
               4,579,682   

Washington — 0.9%

     

Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/32

      1,365        1,459,429   

 

 

                
8    BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2014   

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 (e)		   

Par  

(000)

     Value  

Wisconsin — 1.7%

     

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Obligated Group, Series C, 5.25%, 4/01/39 (f)

    $ 2,859      $ 2,963,440   
Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts — 49.0%              82,743,089   

Total Long-Term Investments

(Cost — $255,727,506) — 159.2%

  

  

     268,777,705   
    
                  
Short-Term Securities    Shares         

FFI Institutional Tax-Exempt Fund, 0.03% (g)(h)

      2,488,699        2,488,699   

Total Short-Term Securities

(Cost — $2,488,699) — 1.5%

  

  

     2,488,699   
             Value  

Total Investments

(Cost — $258,216,205*) — 160.7%

  

  

   $ 271,266,404   
Other Assets Less Liabilities — 0.6%        996,151   

Liability for TOB Trust Certificates, Including
Interest Expense and Fees Payable — (28.7%)

   

     (48,505,559 ) 
VMTP Shares, at Liquidation Value — (32.6%)        (55,000,000 ) 
    

 

 

  
Net Assets Applicable to Common Shares — 100.0%      $ 168,756,996   
 

 

 

  

    

 

*   As of January 31, 2014, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

   $ 210,656,470   
 

 

 

  

Gross unrealized appreciation

   $ 15,750,167   

Gross unrealized depreciation

     (3,637,271 ) 
 

 

 

  

Net unrealized appreciation

   $ 12,112,896   
 

 

 

  

 

Notes to Schedule of Investments

 

(a)   Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.

 

(b)   Zero-coupon bond.

 

(c)   Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

(d)   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.

 

(e)   Represent bonds transferred to a TOB. In exchange for which the Fund acquired residual interest certificates. These bonds serve as collateral in a financing transaction.

 

(f)   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, which expire from October 1, 2016 to February 15, 2031 is $8,468,522.

 

(g)   Investments in issuers considered to be an affiliate of the Fund during the period ended January 31, 2014, 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,
2013		     Net
Activity		     Shares Held
at January 31,
2014		     Income  

FFI Institutional Tax-Exempt Fund

     1,169,756        1,318,943        2,488,699      $ 477   

 

(h)   Represents the current yield as of report date.

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2014    9

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

 

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 Guarantee Corp.    EDC    Economic Development Corp.
     AGM    Assured Guaranty Municipal Corp.    GARB    General Airport Revenue Bonds
     AMBAC    American Municipal Bond Assurance Corp.    GO    General Obligation Bonds
     AMT    Alternative Minimum Tax (subject to)    HFA    Housing Finance Agency
     ARB    Airport Revenue Bonds    IDA    Industrial Development Authority
     BARB    Building Aid Revenue Bonds    M/F    Multi-Family
     CAB    Capital Appreciation Bonds    NPFGC    National Public Finance Guarantee Corp.
     COP    Certificates of Participation    RB    Revenue Bonds
     EDA    Economic Development Authority      

 

Ÿ  

Financial futures contracts outstanding as of January 31, 2014 were as follows:

 

Contracts Sold     Issue   Exchange   Expiration  

Notional

Value

     Unrealized
Depreciation		  
  (157 )    10-Year US Treasury Note   Chicago Board of Trade   March 2014   $ 19,742,750      $ (207,245 ) 

 

                
10    BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2014   

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

 

 

Ÿ  

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 as follows:

 

Ÿ  

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

 

Ÿ  

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)

 

Ÿ  

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.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument 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, please 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 as of January 31, 2014:

 

     Level 1        Level 2        Level 3      Total  
Assets:                 

Investments:

                 

Long-Term Investments1

     —         $ 268,777,705         —      $ 268,777,705   

Short-Term Securities

   $ 2,488,699           —         —        2,488,699   
 

 

 

       

 

 

       

 

     

 

 

  
Total   $ 2,488,699         $ 268,777,705         —      $ 271,266,404   
 

 

 

       

 

 

       

 

     

 

 

  

 

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

   $ (207,245 )         —         —      $ (207,245 ) 

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

      

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2014    11

Schedule of Investments (concluded)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

The carrying amount for certain of the Fund’s assets and/or liabilities approximates fair value for financial reporting purposes. As of January 31, 2014, 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

   $ 271,000           —         —      $ 271,000   

Liabilities:

                 

TOB trust certificates

     —         $ (48,497,038 )       —        (48,497,038 ) 

VMTP Shares

     —           (55,000,000 )       —        (55,000,000 ) 
 

 

 

       

 

 

       

 

     

 

 

  

Total

   $ 271,000         $ (103,497,038 )       —      $ (103,226,038 ) 
 

 

 

       

 

 

       

 

     

 

 

  

There were no transfers between levels during the period ended January 31, 2014.

 

                
12    BLACKROCK MUNIHOLDINGS FUND II, INC.    JANUARY 31, 2014   

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 25, 2014

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 25, 2014

 

By:   

/s/ NEAL J. ANDREWS

   
   Neal J. Andrews   
  

Chief Financial Officer (principal financial officer) of

BlackRock MuniHoldings Fund II, Inc.

Date: March 25, 2014