Company: BLE
Filing Date: 2025-08-07
Form Type: PRE 14A
Source: 0001193125-25-175555
Chunk: 131

Company: BLACKROCK MUNICIPAL INCOME TRUST II
Filing Date: 2025-08-07
Form: PRE 14A
Chunk 131
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 generally result in capital gain distributions subject to federal capital gains taxation.

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

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 BLE.

:BLE 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. BLE 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 BLE 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.

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

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

BLE reserves the right to borrow funds subject to BLE’s investment restrictions. The proceeds of borrowings may be used for any valid
purpose including, without limitation, liquidity, investments and repurchases of shares of BLE.

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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 BLE invests.

Tender Option Bond Transactions

BLE currently leverages its assets through the use of residual interest municipal tender option bonds (“TOB Residuals”), which are
derivative interests in municipal bonds. The TOB Residuals in which BLE 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 independent
investigation will be made to confirm the tax-exempt status of the interest or income paid by TOB Residuals held by BLE. Although volatile, TOB Residuals typically offer the potential for yields exceeding the
yields available on fixed rate municipal bonds with comparable credit quality.

TOB Residuals represent beneficial interests in a TOB
Trust formed for the purpose of holding municipal bonds contributed by one or more Trusts. A TOB Trust typically issues two classes of beneficial interests