Company: BLE
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198164
Chunk: 154

Company: BLACKROCK MUNICIPAL INCOME TRUST II
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 154
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. 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.

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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 independent investigation will be made to confirm the
tax-exempt status of the interest or income paid by TOB Residuals held by MUE. 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 funds. A TOB Trust typically issues two classes of beneficial interestsTOB Floaters, which are sold to third party investors, and TOB Residuals, which are generally issued to the fund(s) that transferred
municipal bonds to the TOB Trust. MUE may invest in both TOB Floaters and TOB Residuals. TO