Company: BLE
Filing Date: 2025-08-07
Form Type: PRE 14A
Source: 0001193125-25-175555
Chunk: 145

Company: BLACKROCK MUNICIPAL INCOME TRUST II
Filing Date: 2025-08-07
Form: PRE 14A
Chunk 145
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 sold prior to such
downgrade.

BFK may also invest in securities of other open- or closed-end investment companies
that invest primarily in Municipal Bonds of the types in which BFK may invest directly and in tax-exempt preferred shares that pay dividends that are exempt from regular federal income tax. In addition, BFK
may purchase Municipal Bonds that are additionally secured by insurance, bank credit agreements or escrow accounts. The credit quality of companies which provide these credit enhancements will affect the value of those securities. Although the
insurance feature reduces certain financial risks, the premiums for insurance and the higher market price paid for insured obligations may reduce BFK’s income. The insurance feature does not guarantee the market value of the insured obligations
or the net asset value of BFK’s common shares. BFK may purchase insured bonds and may purchase insurance for bonds in its portfolio.

BFK may invest in certain tax exempt securities classified as “private activity bonds” (or industrial development bonds, under pre-1986 law) (in general, bonds that benefit non-governmental entities) that may subject certain investors in BFK to an alternative minimum tax. The percentage of BFK’s
total assets invested in private activity bonds will vary from time to time. BFK has not established any limit on the percentage of its portfolio that may be invested in Municipal Bonds subject to the alternative minimum tax provisions of federal
tax law, and BFK expects that a portion of the income it produces will be includable in alternative minimum taxable income.

The average
maturity of BFK’s portfolio securities varies from time to time based upon an assessment of economic and market conditions by the Manager. BFK’s portfolio at any given time may include both long-term and intermediate-term Municipal Bonds.

BFK’s stated expectation is that it will invest in Municipal Bonds that, in the Manager’s opinion, are underrated or
undervalued. Underrated Municipal Bonds are those whose ratings do not, in the opinion of the Manager, reflect their true higher creditworthiness. Undervalued Municipal Bonds are bonds that, in the opinion of the Manager, are worth more than the
value assigned to them in the marketplace. The Manager may at times believe that bonds associated with a particular municipal market sector (for example, but not limited to electric utilities), or issued by a particular municipal issuer, are
undervalued. The Manager may purchase those bonds for BFK’s portfolio because they represent

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a market sector or issuer that the Manager considers undervalued, even if the