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: 04/30/2015

Date of reporting period: 07/31/2014

Item 1 – Schedule of Investments

Schedule of Investments July 31, 2014 (Unaudited)

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

Alabama — 3.1%

     

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

    $ 3,450      $ 3,466,215   

County of Jefferson Alabama Sewer, Refunding RB, Sub-Lien, Series D, 6.00%, 10/01/42

      1,875        2,035,706   
    

 

 

  
               5,501,921   

Alaska — 0.7%

     

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

      1,660        1,231,820   

Arizona — 1.2%

     

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

      10        10,179   

Phoenix IDA Arizona, Refunding RB, America West Airlines, Inc. Project, AMT, 6.30%, 10/01/14 (a)

      2,060        2,079,467   
    

 

 

  
               2,089,646   

California — 20.3%

     

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

      2,000        1,751,520   

California Health Facilities Financing Authority, RB:

     

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

      1,110        1,284,825   

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

      1,585        1,897,087   

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

      635        697,192   

California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, Series A, S/F:

     

5.25%, 8/15/39

      80        85,335   

5.25%, 8/15/49

      195        206,944   

California Pollution Control Financing Authority, RB (c):

     

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

      620        627,601   
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

     

California Pollution Control Financing Authority, RB (c) (concluded):

     

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

    $ 515      $ 529,899   

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

      730        748,235   

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

      1,090        1,181,636   

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

      400        454,288   

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

      185        209,383   

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

      545        608,989   

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

      2,525        1,419,202   

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

     

0.00%, 7/01/17

      1,820        1,757,592   

0.00%, 7/01/18

      1,945        1,840,145   

0.00%, 7/01/19

      2,070        1,907,484   

Sequoia Union High School District, GO, Refunding, Election of 2004, Series B (AGM), 5.50%, 7/01/16 (a)

      5,520        6,071,503   

State of California, GO, Various Purposes:

     

6.00%, 3/01/33

      1,265        1,517,709   

6.50%, 4/01/33

      7,325        8,910,496   

State of California Public Works Board, LRB:

     

Series I, 5.00%, 11/01/38

      405        444,241   

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

      600        723,528   

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JULY 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)

     

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

    $ 1,520      $ 1,470,022   
    

 

 

  
               36,344,856   

Colorado — 1.5%

     

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

      1,055        1,105,883   

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

      510        558,486   

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

      920        1,055,037   
    

 

 

  
               2,719,406   

Delaware — 1.6%

     

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

      570        627,530   

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

      2,050        2,156,805   
    

 

 

  
               2,784,335   

District of Columbia — 2.8%

     

Metropolitan Washington Airports Authority, Refunding RB:

     

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

      10,170        3,705,236   

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

      255        270,693   

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

      1,000        1,074,670   
    

 

 

  
               5,050,599   

Florida — 5.4%

     

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

      1,430        1,435,348   

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

      1,725        1,867,140   
Municipal Bonds   

Par  

(000)

     Value  

Florida (concluded)

     

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

    $ 545      $ 611,572   

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

      1,380        1,381,394   

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

      1,765        533,471   

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

      330        355,209   

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

      1,525        1,827,911   

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

      470        320,850   

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

      1,260        1,260,302   
    

 

 

  
               9,593,197   

Georgia — 0.7%

     

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

      420        471,353   

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

      740        824,767   
    

 

 

  
               1,296,120   

Hawaii — 0.4%

     

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

      680        753,420   

Idaho — 1.1%

     

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

      2,000        2,003,160   

Illinois — 16.8%

     

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

     

Series A, 5.75%, 1/01/39

      2,500        2,813,050   

Series C, 6.50%, 1/01/41

      2,935        3,511,434   

 

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

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

Illinois (continued)

     

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

    $ 1,615      $ 1,640,937   

City of Chicago Illinois, GO, Refunding Project, Series A, 5.25%, 1/01/32

      2,290        2,395,500   

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

      530        574,170   

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

      410        439,065   

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

      600        608,412   

City of Chicago Illinois Board of Education, GO, Series A, 5.25%, 12/01/41

      1,350        1,367,928   

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

      3,645        3,807,531   

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

      410        458,167   

Illinois Finance Authority, Refunding RB, Central Dupage Health, Series B, 5.50%, 11/01/39

      800        894,384   

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

      1,165        1,266,611   

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

     

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

      9,555        1,778,854   

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

      2,230        2,317,706   

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

      1,260        1,309,254   

Railsplitter Tobacco Settlement Authority, RB:

     

5.50%, 6/01/23

      230        267,559   

6.00%, 6/01/28

      500        581,960   

State of Illinois, GO:

     

5.00%, 2/01/39

      810        816,091   

Series A, 5.00%, 4/01/38

      1,920        1,938,701   

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

      315        348,437   

University of Illinois, RB, Auxiliary Facilities System, Series A:

     

5.00%, 4/01/39

      425        460,547   
Municipal Bonds   

Par  

(000)

     Value  

Illinois (concluded)

     

University of Illinois, RB, Auxiliary Facilities System, Series A (concluded):

     

5.00%, 4/01/44

    $ 520      $ 561,324   
    

 

 

  
               30,157,622   

Indiana — 4.5%

     

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

     

6.75%, 1/01/34

      415        461,575   

7.00%, 1/01/44

      1,000        1,114,880   

Indiana Finance Authority, RB, Series A:

     

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

      1,660        1,841,538   

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

      225        232,511   

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

      740        763,058   

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

      420        446,863   

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

      1,660        1,846,617   

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

      565        638,354   

Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 1/15/40

      640        700,410   
    

 

 

  
               8,045,806   

Iowa — 2.2%

     

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

     

5.00%, 12/01/19

      485        509,847   

5.50%, 12/01/22

      1,175        1,225,172   

5.25%, 12/01/25

      230        242,404   

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

      885        934,109   

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JULY 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  

Iowa (concluded)

     

Iowa Tobacco Settlement Authority, Refunding RB, Asset-Backed, Series C, 5.63%, 6/01/46

    $ 1,270      $ 1,049,553   
    

 

 

  
               3,961,085   

Kansas — 0.7%

     

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

      1,105        1,238,760   

Kentucky — 0.5%

     

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

      520        564,886   

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

      635        407,937   
    

 

 

  
               972,823   

Louisiana — 3.4%

     

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

      420        468,107   

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

      2,500        2,781,125   

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

      310        325,918   

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

     

5.50%, 5/15/30

      510        557,971   

5.25%, 5/15/31

      435        466,755   

5.25%, 5/15/32

      555        589,926   

5.25%, 5/15/33

      600        634,908   

5.25%, 5/15/35

      255        270,983   
    

 

 

  
               6,095,693   

Maine — 0.1%

     

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

      150        157,998   
Municipal Bonds   

Par  

(000)

     Value  

Maryland — 1.2%

     

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

    $ 220      $ 233,783   

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

      605        660,454   

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

      1,095        1,198,171   
    

 

 

  
               2,092,408   

Massachusetts — 3.2%

     

Massachusetts Development Finance Agency, Refunding RB:

     

Boston University, Series P, 5.45%, 5/15/59

      845        967,449   

Covanta Energy Project, Series C, AMT, 5.25%, 11/01/42

      1,155        1,168,132   

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

      360        394,211   

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

      2,100        2,106,468   

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

      985        1,023,533   
    

 

 

  
               5,659,793   

Michigan — 3.3%

     

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

     

Series A, 5.00%, 7/01/32

      790        767,208   

Series A, 5.25%, 7/01/39

      2,235        2,189,272   

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

      460        503,415   

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

      690        735,989   

 

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

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

Michigan (concluded)

     

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

    $ 1,520      $ 1,638,058   
    

 

 

  
               5,833,942   

Minnesota — 1.0%

     

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

      1,540        1,821,497   

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        136,819   

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

      130        139,794   
    

 

 

  
               276,613   

New Hampshire — 0.9%

     

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

      1,530        1,701,100   

New Jersey — 3.4%

     

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

     

5.13%, 9/15/23

      1,040        1,086,561   

5.25%, 9/15/29

      990        1,019,997   

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

      1,125        1,220,231   

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

     

Series A, 5.50%, 6/15/41

      1,025        1,135,351   

Series B, 5.25%, 6/15/36

      1,235        1,343,137   
Municipal Bonds    Par  
(000)		     Value  

New Jersey (concluded)

     

Rutgers—The State University of New Jersey, Refunding RB, Series L, 5.00%, 5/01/43

    $ 265      $ 294,092   
    

 

 

  
               6,099,369   

New York — 7.6%

     

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

      740        807,059   

County of Westchester Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44

      687        729,829   

Dutchess County Industrial Development Agency, Refunding RB, 5.00%, 8/01/46

      2,800        2,773,512   

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

      1,050        1,189,996   

Metropolitan Transportation Authority, RB, Series B, 5.25%, 11/15/38

      1,255        1,405,801   

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

      1,270        1,411,427   

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        677,084   

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

     

6.00%, 12/01/36

      650        749,730   

6.00%, 12/01/42

      630        722,786   

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

      3,200        3,231,904   
    

 

 

  
               13,699,128   

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        778,504   

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JULY 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  

North Carolina (concluded)

     

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

    $ 305      $ 338,196   
    

 

 

  
               1,116,700   

Ohio — 0.2%

     

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

      350        373,111   

Pennsylvania — 2.7%

     

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 7/01/42

      645        652,560   

Pennsylvania Economic Development Financing Authority, RB:

     

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

      1,830        2,097,784   

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

      1,500        1,500,555   

State of Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44

      585        640,832   
    

 

 

  
               4,891,731   

South Carolina — 2.2%

     

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

      1,650        1,780,185   

State of South Carolina Public Service Authority, RB, Series A, 5.50%, 12/01/54

      1,885        2,087,034   
    

 

 

  
               3,867,219   

Tennessee — 2.6%

     

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

      720        782,150   

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

      1,225        1,227,585   
Municipal Bonds   

Par  

(000)

     Value  

Tennessee (concluded)

     

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

    $ 2,500      $ 2,641,750   
    

 

 

  
               4,651,485   

Texas — 6.7%

     

Central Texas Regional Mobility Authority, Refunding RB:

     

Senior Lien, 6.25%, 1/01/46

      1,070        1,200,839   

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

      180        187,330   

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

      160        164,250   

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

      535        605,310   

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        266,369   

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

      1,380        1,741,477   

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        713,388   

0.00%, 9/15/41

      1,395        373,748   

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

      320        357,459   

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

      1,015        302,977   

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

      3,020        3,203,163   

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        1,383,566   

 

                
6    BLACKROCK MUNIHOLDINGS FUND II, INC.    JULY 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 (concluded):

     

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

    $ 1,300      $ 1,526,083   
    

 

 

  
               12,025,959   

Vermont — 0.0%

     

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

      80        81,033   

Virginia — 3.1%

     

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

      2,500        2,561,800   

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

     

5.25%, 1/01/32

      400        427,776   

6.00%, 1/01/37

      2,325        2,592,700   
    

 

 

  
               5,582,276   

Washington — 0.7%

     

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

      1,195        1,345,881   

Wisconsin — 3.1%

     

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

      3,620        4,271,166   

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

      1,235        1,332,330   
    

 

 

  
               5,603,496   
Total Municipal Bonds — 109.7%        196,721,008   
    
                  

Municipal Bonds Transferred to Tender

Option Bond (TOB) Trusts (e)

  

California — 7.8%

     

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

      1,640        1,975,721   

Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts (e)

   

Par  

(000)

     Value  

California (concluded)

     

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

    $ 1,335      $ 1,506,014   

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

      4,770        5,304,574   

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

      2,968        3,250,542   

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

      1,170        1,293,330   

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

      553        637,425   
    

 

 

  
               13,967,606   

Colorado — 2.5%

     

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

     

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

      1,870        1,948,689   

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

      1,200        1,250,676   

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

      1,080        1,229,726   
    

 

 

  
               4,429,091   

Connecticut — 2.8%

     

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

     

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

      2,299        2,507,398   

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

      2,362        2,565,985   
    

 

 

  
               5,073,383   

Florida — 1.8%

     

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

      2,840        3,142,292   

Georgia — 1.0%

     

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

      1,649        1,824,216   

 

                
   BLACKROCK MUNIHOLDINGS FUND II, INC.    JULY 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  

Massachusetts — 2.0%

     

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

    $ 3,211      $ 3,552,811   

New Hampshire — 0.7%

     

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

      1,019        1,158,326   

New York — 8.5%

     

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        926,488   

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

      3,299        3,693,681   

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

      810        921,405   

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

      5,400        5,950,152   

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

      3,250        3,643,380   
    

 

 

  
               15,135,106   

North Carolina — 0.5%

     

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

      800        893,056   

Ohio — 4.3%

     

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

      6,974        7,735,596   

Texas — 5.0%

     

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

      1,260        1,381,414   

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

      3,363        3,745,591   

Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts (e)

   

Par  

(000)

     Value  

Texas (concluded)

     

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

    $ 1,710      $ 1,882,094   

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

      1,800        2,017,599   
    

 

 

  
               9,026,698   

Utah — 0.8%

     

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

      1,394        1,482,670   

Virginia — 2.6%

     

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

      2,729        3,027,465   

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

      1,553        1,660,443   
    

 

 

  
               4,687,908   

Washington — 0.8%

     

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

      1,365        1,502,426   

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        3,048,525   

Total Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts — 42.8%

              76,659,710   

Total Long-Term Investments

(Cost — $249,329,015) — 152.5%

              273,380,718   
    
                  
Short-Term Securities    Shares         

FFI Institutional Tax-Exempt Fund, 0.01% (g)(h)

      2,124,609        2,124,609   

Total Short-Term Securities

(Cost — $2,124,609) — 1.2%

              2,124,609   

 

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

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

      Value  
Total Investments (Cost — $251,453,624*) — 153.7%    $ 275,505,327   
Other Assets Less Liabilities — 1.3%      2,312,480   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (24.3%)

      (43,577,073 ) 
VMTP Shares, at Liquidation Value — (30.7%)      (55,000,000 ) 
  

 

 

  
Net Assets Applicable to Common Shares — 100.0%    $ 179,240,734   
  

 

 

  

 

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

 

Tax cost

   $ 208,694,039   
 

 

 

  

Gross unrealized appreciation

   $ 24,493,043   

Gross unrealized depreciation

     (1,249,814 ) 
 

 

 

  

Net unrealized appreciation

   $ 23,243,229   
 

 

 

  

 

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)   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)   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.

 

(e)   Represent bonds transferred to a TOB. In exchange for which the Fund received cash and 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 $8,468,495.

 

(g)   Investments in issuers considered to be an affiliate of the Fund during the period ended July 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,
2014		       

Net

Activity

        Shares Held
at July 31,
2014		        Income  

FFI Institutional Tax-Exempt Fund

        944,029           1,180,580           2,124,609         $ 74   

 

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

 

Portfolio Abbreviations

 

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

 

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

Schedule of Investments (continued)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

 

NPFGC    National Public Finance Guarantee Corp.
RB    Revenue Bonds
S/F    Single-Family

 

Ÿ  

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

 

Contracts
Sold		     Issue   Exchange   Expiration   Notional
Value		     Unrealized
Appreciation		  
  (136 )    10-Year U.S. Treasury Note   Chicago Board of Trade   September 2014   $ 16,946,875      $ 146,435   

 

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 annual report.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of July 31, 2014:

 

     Level 1        Level 2        Level 3      Total  
Assets:                 
Investments:                 

Long-Term Investments1

     —         $ 273,380,718         —      $ 273,380,718   

Short-Term Securities

   $ 2,124,609           —         —        2,124,609   
 

 

 

  
Total   $ 2,124,609         $ 273,380,718         —      $ 275,505,327   
 

 

 

  

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

       

 

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

Schedule of Investments (concluded)

   

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

 

     Level 1            Level 2              Level 3      Total  
Derivative Financial Instruments2                 
Assets:                 

Interest rate contracts

   $ 146,435         —            —      $        146,435   

 

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 July 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

   $ 186,000           —         —      $ 186,000   
Liabilities:                 

TOB trust certificates

     —         $ (43,568,059 )       —        (43,568,059 ) 

VMTP Shares

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

 

 

  
Total   $ 186,000         $ (98,568,059 )       —      $ (98,382,059 ) 
 

 

 

  

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

 

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

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:   September 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:   September 25, 2014  
By:  

/s/ Neal J. Andrews

  
  Neal J. Andrews  
  Chief Financial Officer (principal financial officer) of
  BlackRock MuniHoldings Fund II, Inc.
Date:   September 25, 2014