Company: BLE
Filing Date: 2025-08-07
Form Type: PRE 14A
Source: 0001193125-25-175555
Chunk: 154

Company: BLACKROCK MUNICIPAL INCOME TRUST II
Filing Date: 2025-08-07
Form: PRE 14A
Chunk 154
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 of interest rate risk, credit risk and other forms of risk, and that their prices will
ultimately rise, relative to the market, to reflect their true value. Any capital appreciation realized by MUE will generally result in capital gain distributions subject to federal capital gains taxation.

MUE ordinarily does not intend to realize significant investment income not exempt from federal income tax. From time to time, MUE may realize taxable capital
gains.

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Federal tax legislation has limited the types and volume of bonds the interest on which qualifies for a
federal income tax exemption. As a result, this legislation and legislation that may be enacted in the future may affect the availability of Municipal Bonds for investment by MUE.

: MUE may utilize leverage to seek to enhance the yield and net asset value of its common shares. However, this objective cannot be
achieved in all interest rate environments. MUE currently leverages its assets through the use of VMTP Shares and residual interest municipal tender option bonds (“TOB Residuals”), which are derivative interests in municipal bonds. The TOB
Residuals in which MUE will invest pay interest or income that, in the opinion of counsel to the issuer of such TOB Residuals, is exempt from regular U.S. federal income tax.

MUE may enter into reverse repurchase agreements with respect to its portfolio investments subject to MUE’s investment restrictions.

MUE may enter into derivative securities transactions that have leverage embedded in them.

MUE is authorized to borrow money in amounts of up to 5% of the value of its total assets at the time of such borrowings; provided, however,
that MUE is authorized to borrow moneys in amounts of up to 33 1/3% of the value of its total assets at the time of such borrowings to finance the repurchase of its own common stock pursuant to tender offers or otherwise to redeem or repurchase
shares of preferred stock.

Description of Municipal Bonds

See “The Acquiring Fund’s Investments – Description of Municipal Bonds” for additional information regarding the types of
municipal bonds in which MUE invests.

Tender Option Bond Transactions

MUE currently leverages its assets through the use of TOB Residuals, which are derivative interests in municipal bonds. The TOB Residuals in
which MUE will invest pay interest or income that, in the opinion of counsel to the issuer of such TOB Residuals, is exempt from regular U.S. federal income tax. No