BLACKROCK MUNICIPAL INCOME TRUST

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: 811-10339

Name of Fund: BlackRock Municipal Income Trust (BFK)

Fund Address:    100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Municipal

Income Trust, 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: 04/30/2017

Date of reporting period: 01/31/2017


Item 1 – Schedule of Investments


Schedule of Investments January 31, 2017 (Unaudited)

  

BlackRock Municipal Income Trust (BFK)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Alabama — 3.7%

 

County of Jefferson Alabama, RB, Limited Obligation School, Series A, 5.25%, 1/01/19

   $ 2,910     $ 2,921,844  

County of Jefferson Alabama Sewer, Refunding RB:

    

Senior Lien, Series A (AGM), 5.00%, 10/01/44

     1,555       1,722,240  

Senior Lien, Series A (AGM), 5.25%, 10/01/48

     2,275       2,554,734  

Sub-Lien, Series D, 6.00%, 10/01/42

     5,740       6,524,141  

Sub-Lien, Series D, 7.00%, 10/01/51

     1,765       2,131,043  

Lower Alabama Gas District, RB, Series A, 5.00%, 9/01/46

     2,825       3,221,348  

State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/40

     4,080       4,656,790  
    

 

 

 
               23,732,140  

Arizona — 3.6%

    

City of Phoenix Arizona IDA, RB, Legacy Traditional Schools Projects, Series A, 5.00%, 7/01/46 (a)

     3,400       3,240,200  

Salt Verde Financial Corp., RB, Senior:

    

5.00%, 12/01/32

     10,030       11,247,843  

5.00%, 12/01/37

     7,460       8,427,860  
    

 

 

 
               22,915,903  

California — 14.6%

    

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, Series F-1, 5.63%, 4/01/19 (b)

     4,445       4,870,920  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 8/15/42

     6,230       7,095,596  

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

     2,465       2,752,271  

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

    

5.25%, 8/15/39

     290       317,138  

5.25%, 8/15/49

     715       777,026  
Municipal Bonds   

Par  

(000)

    Value  

California (continued)

 

California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45 (a)

   $ 2,970     $ 3,023,430  

California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A (a):

    

5.00%, 12/01/41

     1,030       1,064,866  

5.00%, 12/01/46

     1,250       1,277,988  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A:

    

Senior, 5.00%, 5/15/40

     11,690       12,886,705  

5.25%, 5/15/39

     1,560       1,689,043  

City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/40

     690       818,478  

County of Riverside Transportation Commission, RB, CAB, Senior Lien, Series B (c):

    

0.00%, 6/01/41

     5,000       1,532,700  

0.00%, 6/01/42

     6,000       1,722,000  

0.00%, 6/01/43

     5,000       1,331,900  

Foothill-De Anza Community College District, GO, Election of 2006, Series C, 5.00%, 8/01/21 (b)

     7,000       8,061,130  

Sacramento Area Flood Control Agency, 5.00%, 10/01/47

     6,230       7,049,370  

San Marcos Unified School District, GO, CAB, Election of 2010, Series B (c):

    

0.00%, 8/01/34

     3,500       1,682,415  

0.00%, 8/01/36

     4,000       1,721,720  

State of California, GO, Various Purposes:

    

6.00%, 3/01/33

     4,970       5,625,593  

6.50%, 4/01/33

     20,410       22,672,244  

State of California Public Works Board, LRB, Various Capital Projects:

    

Series I, 5.00%, 11/01/38

     1,495       1,672,531  
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2017    1


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds   

Par  

(000)

    Value  

California (continued)

 

State of California Public Works Board, LRB, Various Capital Projects (continued):

    

Sub-Series I-1, 6.38%, 11/01/19 (b)

   $ 2,315     $ 2,639,656  
    

 

 

 
               92,284,720  

Colorado — 0.7%

    

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiative, Series A, 5.50%, 7/01/34

     4,205       4,367,439  

Connecticut — 3.5%

    

Connecticut State Health & Educational Facility Authority, RB:

    

Ascension Health Senior Credit, Series A, 5.00%, 11/15/40

     2,710       2,892,817  

Yale University Issue, Series T-1, 4.70%, 7/01/29

     9,400       9,543,350  

Yale University Issue, Series X-3, 4.85%, 7/01/37

     9,360       9,501,055  
    

 

 

 
               21,937,222  

Delaware — 2.4%

    

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

     2,225       2,391,830  

Delaware Transportation Authority, RB, 5.00%, 6/01/55

     2,280       2,473,754  

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

     10,080       10,433,002  
    

 

 

 
               15,298,586  

District of Columbia — 5.1%

    

District of Columbia, Refunding RB:

    

GeorgeTown University, 5.00%, 4/01/35

     865       979,111  

GeorgeTown University, 5.00%, 4/01/36

     865       975,945  

GeorgeTown University, 5.00%, 4/01/42

     1,005       1,128,404  

Kipp Charter School, Series A, 6.00%, 7/01/43

     1,480       1,694,615  

District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, 6.75%, 5/15/40

     23,035       23,610,414  
Municipal Bonds   

Par  

(000)

    Value  

District of Columbia (continued)

 

Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, 1st Senior Lien, Series A:

    

5.00%, 10/01/39

   $ 990     $ 1,061,250  

5.25%, 10/01/44

     2,465       2,655,791  
    

 

 

 
               32,105,530  

Florida — 2.8%

    

County of Collier Florida Health Facilities Authority, Refunding RB, Series A, 5.00%, 5/01/45

     2,620       2,817,653  

County of Miami-Dade Florida Aviation, Refunding ARB, Miami International Airport, Series A-1, 5.38%, 10/01/41

     2,280       2,511,374  

County of Orange Florida Health Facilities Authority, Refunding RB, Mayflower Retirement Center:

    

5.00%, 6/01/32

     600       629,466  

5.00%, 6/01/36

     125       130,124  

5.13%, 6/01/42

     1,925       2,009,488  

Mid-Bay Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21 (b)

     5,885       7,341,126  

Stevens Plantation Community Development District, RB, Special Assessment, Series A, 7.10%, 5/01/35 (d)(e)

     3,395       2,374,836  
    

 

 

 
               17,814,067  

Georgia — 2.1%

    

City of Atlanta Georgia Water & Wastewater, Refunding RB, 5.00%, 11/01/40

     4,370       4,922,674  

County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 8/15/54

     1,010       1,159,551  

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

     1,650       1,783,485  
 

 

                
2    BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2017   


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds   

Par  

(000)

    Value  

Georgia (continued)

 

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

   $ 5,000     $ 5,376,700  
    

 

 

 
               13,242,410  

Hawaii — 0.5%

    

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

     2,660       2,905,837  

Idaho — 0.3%

    

Idaho Health Facilities Authority, RB, Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46

     1,485       1,652,152  

Illinois — 17.7%

    

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

     6,155       5,914,709  

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

     3,560       3,339,351  

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

     2,500       2,345,050  

City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien, Series C, 6.50%, 1/01/21 (b)

     11,385       13,542,344  

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

     2,055       2,190,938  

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

     7,625       8,093,175  

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

     1,525       1,635,989  

Illinois Finance Authority, RB, Advocate Health Care Network:

    

5.38%, 4/01/19 (b)

     5,010       5,455,389  

5.38%, 4/01/44

     5,620       5,949,950  

Illinois Finance Authority, Refunding RB:

    

Ascension Health, Series A, 5.00%, 11/15/37

     1,895       2,071,652  

Central Dupage Health, Series B, 5.50%, 11/01/39

     3,160       3,481,182  

Presence Health Network, Series C, 4.00%, 2/15/41

     2,805       2,329,244  

Illinois State Toll Highway Authority, RB:

    

Senior, Series C, 5.00%, 1/01/36

     5,095       5,597,163  
Municipal Bonds   

Par  

(000)

    Value  

Illinois (continued)

 

Illinois State Toll Highway Authority, RB (continued):

    

Senior, Series C, 5.00%, 1/01/37

   $ 5,455     $ 5,976,880  

Series A, 5.00%, 1/01/38

     3,875       4,259,129  

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

    

Series B (AGM), 5.00%, 6/15/50

     14,710       15,343,560  

Series B-2, 5.00%, 6/15/50

     3,905       3,936,084  

Railsplitter Tobacco Settlement Authority, RB:

    

5.50%, 6/01/23

     885       997,475  

6.00%, 6/01/28

     2,245       2,552,363  

State of Illinois, GO:

    

5.00%, 2/01/39

     2,990       2,970,266  

Series A, 5.00%, 4/01/38

     9,030       8,947,917  

State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/19 (b)

     1,240       1,354,886  

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

    

5.00%, 4/01/39

     1,565       1,686,866  

5.00%, 4/01/44

     1,910       2,051,283  
               112,022,845  

Indiana — 3.9%

    

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

    

6.75%, 1/01/34

     1,525       1,798,341  

7.00%, 1/01/44

     3,680       4,382,806  

Indiana Finance Authority, RB, Series A:

    

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

     6,305       7,088,459  

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

     880       910,703  

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

     2,905       2,957,668  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 1/01/51

     790       815,162  

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

     1,655       1,785,249  
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2017    3


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds   

Par  

(000)

    Value  

Indiana (continued)

 

Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/19 (b)

   $ 2,150     $ 2,346,660  

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

     2,490       2,759,717  
    

 

 

 
               24,844,765  

Iowa — 1.7%

    

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

    

5.00%, 12/01/19

     935       938,880  

5.50%, 12/01/22

     4,595       4,617,975  

5.25%, 12/01/25

     2,125       2,121,132  

5.88%, 12/01/26 (a)

     805       813,485  

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

     2,180       2,307,094  
    

 

 

 
               10,798,566  

Kentucky — 0.6%

    

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

     1,915       2,028,560  

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

     2,325       1,877,600  
    

 

 

 
               3,906,160  

Louisiana — 3.4%

    

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35

     6,535       7,514,923  

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

    

5.50%, 5/15/30

     1,980       2,119,016  

5.25%, 5/15/31

     1,690       1,812,306  

5.25%, 5/15/32

     2,160       2,338,783  

5.25%, 5/15/33

     2,345       2,527,347  
Municipal Bonds   

Par  

(000)

    Value  

Louisiana (continued)

 

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

    

5.25%, 5/15/35

   $ 4,985     $ 5,396,412  
    

 

 

 
               21,708,787  

Maryland — 1.3%

    

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

     855       918,612  

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

     1,440       1,420,877  

Maryland Health & Higher Educational Facilities Authority, RB, Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46

     840       932,266  

Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project, 6.25%, 1/01/21 (b)

     4,295       5,060,970  
    

 

 

 
               8,332,725  

Massachusetts — 1.6%

    

Commonwealth of Massachusetts, GO, Series E, 3.00%, 4/01/44

     5,385       4,542,032  

Massachusetts Development Finance Agency, Refunding RB, Covanta Energy Project, Series C, AMT, 5.25%, 11/01/42 (a)

     2,775       2,787,016  

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

     2,535       2,721,626  
    

 

 

 
               10,050,674  

Michigan — 3.2%

    

City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 7/01/39

     8,665       9,340,523  

City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41

     2,870       3,246,487  

Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital:

    

5.50%, 5/15/20 (b)

     1,490       1,685,175  

5.50%, 5/15/36

     1,210       1,319,880  
 

 

                
4    BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2017   


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds   

Par  

(000)

    Value  

Michigan (continued)

 

Michigan Finance Authority, Refunding RB:

    

Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 7/01/44

   $ 1,710     $ 1,814,703  

Henry Ford Health System, 4.00%, 11/15/46

     2,875       2,749,363  
    

 

 

 
               20,156,131  

Minnesota — 0.5%

    

City of Rochester Minnesota Electric Utility Revenue, Refunding RB, Series A, 5.00%, 12/01/47 (g)

     1,400       1,586,564  

Minnesota Higher Education Facilities Authority, RB, Augsburg College, Series A, 5.00%, 5/01/46

     715       754,890  

Minnesota Higher Education Facilities Authority, Refunding RB, St.Olaf College, 4.00%, 10/01/34

     800       829,872  
    

 

 

 
               3,171,326  

Missouri — 0.5%

    

Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44

     495       544,594  

State of Missouri Health & Educational Facilities Authority, RB, Senior Living Facilities, Lutheran Senior Services, 5.50%, 2/01/42

     2,035       2,137,523  

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

     480       517,786  
    

 

 

 
               3,199,903  

Nebraska — 2.1%

    

Central Plains Energy Project Nebraska, RB, Gas Project No. 3:

    

5.25%, 9/01/37

     1,610       1,744,934  

5.00%, 9/01/42

     2,815       2,984,857  

County of Douglas Nebraska Hospital Authority No. 2, Refunding RB, Health Facilities, Immanuel Obligation Group, 5.63%, 1/01/40

     3,280       3,481,851  
Municipal Bonds   

Par  

(000)

    Value  

Nebraska (continued)

 

County of Lancaster Nebraska Hospital Authority No. 1, Refunding RB, Immanuel Obligation Group, Health Facilities, 5.63%, 1/01/40

   $ 600     $ 650,646  

County of Sarpy Nebraska Hospital Authority No. 1, Refunding RB, Nebraska Medicine, 4.00%, 5/15/51

     4,770       4,647,984  
    

 

 

 
               13,510,272  

New Jersey — 9.3%

    

Casino Reinvestment Development Authority, Refunding RB:

    

5.25%, 11/01/39

     3,280       3,258,188  

5.25%, 11/01/44

     2,980       2,928,446  

County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 7/01/45 (a)

     2,115       2,082,662  

County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel, Sub-Series B, 6.25%, 1/01/37 (d)(e)

     3,680       144,219  

New Jersey EDA, RB, AMT:

    

Continental Airlines, Inc. Project, 4.88%, 9/15/19

     1,215       1,263,576  

Continental Airlines, Inc. Project, 5.25%, 9/15/29

     3,830       4,030,424  

Continental Airlines, Inc. Project, Series B, 5.63%, 11/15/30

     2,035       2,208,138  

Goethals Bridge Replacement Project, Private Activity Bond, 5.38%, 1/01/43

     2,285       2,415,131  

New Jersey EDA, Refunding RB, Special Assessment, Kapkowski Road Landfill Project, 6.50%, 4/01/28

     8,000       9,228,080  

New Jersey State Turnpike Authority, RB:

    

Series A, 5.00%, 1/01/43

     8,150       8,942,017  

Series E, 5.00%, 1/01/45

     5,095       5,615,607  

New Jersey Transportation Trust Fund Authority, RB:

    

Transportation Program, Series AA, 5.00%, 6/15/44

     3,765       3,731,491  

Transportation System, Series A, 5.50%, 6/15/41

     8,000       8,170,560  
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2017    5


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds   

Par  

(000)

    Value  

New Jersey (continued)

 

New Jersey Transportation Trust Fund Authority, RB (continued):

    

Transportation System, Series B, 5.25%, 6/15/36

   $ 4,810     $ 4,886,575  
    

 

 

 
               58,905,114  

New York — 8.4%

    

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

     4,805       5,371,125  

Counties of New York Tobacco Trust II, RB, Settlement Pass-Through, 5.75%, 6/01/43

     840       842,730  

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 6/01/41 (a)

     3,600       3,731,040  

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

     1,749       1,843,364  

Metropolitan Transportation Authority, RB, Series B:

    

5.25%, 11/15/38

     4,640       5,273,174  

5.25%, 11/15/39

     1,650       1,875,159  

Metropolitan Transportation Authority Hudson Rail Yards Trust Obligations, Refunding RB, Series A, 5.00%, 11/15/56

     2,120       2,270,690  

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

     2,400       2,616,048  

3 World Trade Center Project, Class 1, 5.00%, 11/15/44 (a)

     7,830       8,154,789  

3 World Trade Center Project, Class 2, 5.15%, 11/15/34 (a)

     660       702,055  

3 World Trade Center Project, Class 2, 5.38%, 11/15/40 (a)

     1,655       1,779,075  

New York State Dormitory Authority, Refunding RB, Series D, 5.00%, 2/15/37

     6,655       7,474,896  

New York Transportation Development Corp., RB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT, 5.00%, 7/01/46

     1,165       1,215,072  
Municipal Bonds   

Par  

(000)

    Value  

New York (continued)

 

New York Transportation Development Corp., Refunding RB, American Airlines, Inc., AMT:

    

5.00%, 8/01/26

   $ 1,080     $ 1,125,338  

5.00%, 8/01/31

     2,585       2,676,819  

Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42 (a)

     1,575       1,585,883  

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

    

6.00%, 12/01/36

     2,525       2,847,796  

6.00%, 12/01/42

     1,960       2,205,000  
    

 

 

 
               53,590,053  

North Carolina — 2.2%

    

North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 4/01/19 (b)

     9,000       9,730,170  

North Carolina Medical Care Commission, RB, Health Care Facilities, Duke University Health System, Series A, 5.00%, 6/01/19 (b)

     2,750       2,989,360  

North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 3/01/41

     1,130       1,244,085  
    

 

 

 
               13,963,615  

Ohio — 3.9%

    

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2, 5.88%, 6/01/47

     9,530       8,708,037  

County of Allen Ohio Hospital Facilities, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 6/01/38

     6,125       6,617,450  

County of Franklin Ohio, RB:

    

Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 7/01/40

     1,280       1,404,058  

Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46

     800       883,528  
 

 

                
6    BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2017   


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds   

Par  

(000)

    Value  

Ohio (continued)

    

County of Montgomery Ohio, Refunding RB, Catholic Health, Series A, 5.00%, 5/01/39

   $ 5,450     $ 5,625,108  

State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 6/30/53

     1,585       1,664,884  
    

 

 

 
               24,903,065  

Pennsylvania — 1.5%

    

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

     1,240       1,321,431  

Pennsylvania Economic Development Financing Authority, RB:

    

Aqua Pennsylvania, Inc. Project, Series B, 5.00%, 11/15/40

     3,725       4,017,375  

Pennsylvania Bridge Finco LP, AMT, 5.00%, 6/30/42

     1,660       1,751,782  

Pennsylvania Turnpike Commission, RB,

    

Series A, 5.00%, 12/01/44

     2,155       2,359,229  
    

 

 

 
               9,449,817  

Rhode Island — 2.2%

    

Tobacco Settlement Financing Corp., Refunding RB:

    

Series A, 5.00%, 6/01/35

     3,060       3,204,157  

Series B, 4.50%, 6/01/45

     5,175       4,889,702  

Series B, 5.00%, 6/01/50

     5,765       5,776,299  
    

 

 

 
               13,870,158  

South Carolina — 4.7%

    

State of South Carolina Ports Authority, RB:

    

5.25%, 7/01/40

     6,455       7,036,079  

AMT, 5.25%, 7/01/55

     2,525       2,731,141  

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

     12,065       13,588,206  
Municipal Bonds   

Par  

(000)

    Value  

South Carolina (continued)

    

State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55

   $ 6,140     $ 6,725,204  
    

 

 

 
               30,080,630  

Tennessee — 0.7%

    

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

     2,660       2,768,129  

Metropolitan Government of Nashville & Davidson County Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 7/01/40

     1,350       1,472,728  
    

 

 

 
               4,240,857  

Texas — 12.6%

    

Central Texas Regional Mobility Authority, Refunding RB:

    

Senior Lien, 6.25%, 1/01/21 (b)

     4,210       4,948,518  

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

     700       746,788  

Central Texas Turnpike System, Refunding RB, Series C, 5.00%, 8/15/42

     1,150       1,245,979  

City of Austin Texas Airport System, ARB, Revenue, AMT, 5.00%, 11/15/39

     385       418,310  

City of Dallas Texas Waterworks & Sewer System Revenue, Refunding RB:

    

5.00%, 10/01/20 (b)

     1,375       1,546,298  

5.00%, 10/01/35

     1,595       1,763,767  

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

     3,000       3,163,860  

City of Houston Texas Combined Utility System Revenue, Refunding RB, Combined 1st Lien, Series A (AGC):

    

6.00%, 5/15/19 (b)

     15,560       17,238,457  

6.00%, 11/15/35

     865       955,617  

County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B (b):

    

7.00%, 1/01/23

     380       477,470  

7.00%, 1/01/23

     500       628,250  
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2017    7


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds   

Par  

(000)

    Value  

Texas (continued)

    

County of Harris Texas-Houston Sports Authority, Refunding RB (NPFGC) (c):

    

3rd Lien, Series A-3, 0.00%, 11/15/37

   $ 26,120     $ 8,524,523  

CAB, Junior Lien, Series H, 0.00%, 11/15/35

     5,000       2,080,550  

CAB, Senior Lien, Series A, 0.00%, 11/15/38

     12,580       4,529,681  

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project,
Series A (c):

    

0.00%, 9/15/40

     9,780       3,486,961  

0.00%, 9/15/41

     5,420       1,834,182  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/20 (b)

     7,345       8,486,266  

Fort Bend County Industrial Development Corp., RB, NRG Energy Inc. Project, Series B, 4.75%, 11/01/42

     1,635       1,650,778  

New Hope Cultural Education Facilities Corp., RB, Collegiate Housing Tarleton State University Project, 5.00%, 4/01/35

     355       369,708  

Texas Municipal Gas Acquisition & Supply Corp. III, RB, 5.00%, 12/15/32

     2,835       3,012,414  

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:

    

LBJ Infrastructure Group LLC, 7.00%, 6/30/40

     6,000       6,862,020  

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

     5,100       5,766,774  
    

 

 

 
        79,737,171  

Utah — 0.2%

    

Utah State Charter School Finance Authority, RB, Ogden Preparatory Academy, Series A, 3.25%, 10/15/42

     1,620       1,392,763  

Virginia — 1.2%

    

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

    

5.25%, 1/01/32

     3,155       3,378,563  
Municipal Bonds   

Par  

(000)

    Value  

Virginia (continued)

    

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

    

6.00%, 1/01/37

   $ 3,790     $ 4,245,748  
    

 

 

 
        7,624,311  

Washington — 1.0%

    

Port of Seattle Washington, RB, Series C, AMT, 5.00%, 4/01/40

     1,475       1,612,205  

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

     4,420       4,929,670  
    

 

 

 
        6,541,875  

Wisconsin — 0.8%

    

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

     1,640       1,777,940  

Wisconsin Health & Educational Facilities Authority, Refunding RB, Medical College of Wisconsin, Inc., 4.00%, 12/01/46

     3,545       3,547,659  
    

 

 

 
        5,325,599  
Total Municipal Bonds - 124.5%              789,583,188  
    
                  

Municipal Bonds Transferred to

Tender Option Bond Trusts (h)

  

Par  

(000)

    Value  

Alabama — 0.5%

    

Auburn University, Refunding RB, Series A, 4.00%, 6/01/41

     3,320       3,392,608  

California — 5.4%

    

California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/18 (b)(i)

     5,115       5,478,625  

City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/19 (b)

     18,540       20,468,346  

Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/17 (b)

     4,500       4,595,760  
 

 

                
8    BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2017   


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds Transferred to

Tender Option Bond Trusts (h)

  

Par  

(000)

    Value  

California (continued)

    

San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/19 (b)

   $ 3,260     $ 3,585,013  
    

 

 

 
        34,127,744  

Colorado — 2.1%

    

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

    

Series C-3, 5.10%, 4/29/18

     7,600       7,986,004  

Series C-7, 5.00%, 5/01/18

     4,860       5,101,882  
    

 

 

 
        13,087,886  

Florida — 1.1%

    

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

     6,629       7,298,291  

Illinois — 4.7%

    

County of Will Illinois, 5.00%, 11/15/45

     27,000       29,846,340  

Massachusetts — 0.8%

    

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

     4,427       4,960,475  

New Hampshire — 0.7%

    

New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/19 (b)(i)

     3,989       4,357,139  

New York — 12.4%

    

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

     3,075       3,358,146  

Series HH, 5.00%, 6/15/31 (i)

     16,395       18,428,800  

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

     3,130       3,542,431  

Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.25%, 11/15/56

     8,799       9,963,450  

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

     20,864       23,298,666  

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

     12,611       14,352,569  

Municipal Bonds Transferred to

Tender Option Bond Trusts (h)

  

Par  

(000)

    Value  

New York (continued)

    

Port Authority of New York & New Jersey, Refunding ARB, 194th Series, 5.25%, 10/15/55

   $ 5,070     $ 5,750,495  
    

 

 

 
        78,694,557  

North Carolina — 0.9%

    

North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/55

     4,960       5,559,069  

Pennsylvania — 0.8%

    

Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42

     4,652       5,304,066  

Texas — 4.3%

    

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

     4,900       5,465,803  

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

     6,650       7,397,793  

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

     6,003       6,734,838  

University of Texas, Permanent University Fund, Refunding RB, Series B, 4.00%, 7/01/41

     7,400       7,682,458  
    

 

 

 
        27,280,892  

Utah — 1.2%

    

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

     7,153       7,584,841  

Virginia — 1.8%

    

University of Virginia, Refunding RB, GO, 5.00%, 6/01/18 (b)

     10,767       11,275,666  

Washington — 3.3%

    

Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/17 (b)

     5,459       5,627,961  

State of Washington, GO, Various Purposes, Series E, 5.00%, 2/01/19 (b)

     14,487       15,588,100  
    

 

 

 
        21,216,061  

Total Municipal Bonds Transferred to

Tender Option Bond Trusts - 40.0%

 

 

    253,985,635  
Total Long-Term Investments
(Cost — $989,394,450) — 164.5%
      1,043,568,823  

 

 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2017    9


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Short-Term Securities — 0.4%    Shares     Value  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.50% (j)(k)

     2,532,718     $ 2,532,971  
Total Short-Term Securities
(Cost — $2,532,953) — 0.4%
      2,532,971  
     Value  
Total Investments
(Cost — $991,927,403) — 164.9%
  $ 1,046,101,794  
Other Assets Less Liabilities 1.5%     9,377,363  

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable
(23.7)%

    (150,475,433
VMTP Shares, at Liquidation Value (42.7)%     (270,800,000
    

 

 

 
Net Assets Applicable to Common Shares 100.0%   $ 634,203,724  
    

 

 

 

 

*   As of January 31, 2017, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

   $ 843,835,240  
  

 

 

 

Gross unrealized appreciation

   $ 68,028,673  

Gross unrealized depreciation

     (15,962,748
  

 

 

 

Net unrealized appreciation

   $ 52,065,925  
  

 

 

 
 
Notes to Schedule of Investments

 

(a)   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.

 

(b)   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.

 

(c)   Zero-coupon bond.

 

(d)   Non-income producing security.

 

(e)   Issuer filed for bankruptcy and/or is in default.

 

(f)   Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

 

(g)   When-issued security.

 

(h)   Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing.

 

(i)   All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between June 1, 2017 to November 15, 2019, is $25,986,986.

 

(j)   During the period ended January 31, 2017, investments in issuers considered to be an affiliate of the Trust 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,
2016
     Net
Activity
     Shares Held
at January 31,
2017
     Value at
January
31, 2017
     Income     

Net

Realized Gain

     Change in
Unrealized
Appreciation
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     14,214,479        (11,681,761      2,532,718      $ 2,532,971      $ 23,270      $ 289      $ 18  

 

(k)   Current yield as of period end.

 

                
10    BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2017   


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Contracts
Short
  Issue      Expiration        Notional
Value
       Unrealized
Depreciation
 

(110)

  5-Year U.S. Treasury Note        March 2017          $12,965,391        $ (30,786

(221)

  10-Year U.S. Treasury Note        March 2017          $27,507,594          (82,789

(167)

  Long U.S. Treasury Bond        March 2017          $25,190,906          (40,770
(51)   Ultra U.S. Treasury Bond        March 2017          $8,195,062          (35,428

Total

                 $ (189,773
                

 

 

 

 

Portfolio Abbreviations

 

AGC    Assured Guarantee Corp.
AGM    Assured Guaranty Municipal Corp.
AMT    Alternative Minimum Tax (subject to)
ARB    Airport Revenue Bonds
CAB    Capital Appreciation Bonds
EDA    Economic Development Authority
EDC    Economic Development Corp.
GARB    General Airport Revenue Bonds
GO    General Obligation Bonds
IDA    Industrial Development Authority
LRB    Lease Revenue Bonds
NPFGC    National Public Finance Guarantee Corp.
RB    Revenue Bonds
S/F    Single-Family

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2017    11


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

 

   

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

 

   

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)

 

   

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’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. Investments classified within Level 3 have significant unobservable inputs used by the BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value 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 investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to the Trust’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

     Level 1        Level 2        Level 3        Total  

Assets:

                
Investments:                 

Long-Term Investments 1

           $ 1,043,568,823                 $ 1,043,568,823  

Short-Term Securities

  $ 2,532,971                            2,532,971  
 

 

 

 

Total

  $ 2,532,971        $ 1,043,568,823                 $ 1,046,101,794  
 

 

 

 
                
     Level 1        Level 2        Level 3        Total  
Derivative Financial Instruments 2                 

Liabilities:

                

Interest rate contracts

  $ (189,773                        $ (189,773
 

 

 

 

 

  1   

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

  2   

Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument.

 

                
12    BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2017   


Schedule of Investments (concluded)

  

BlackRock Municipal Income Trust (BFK)

 

The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows

 

     Level 1        Level 2        Level 3        Total  

Liabilities:

                

TOB Trust Certificates

           $ (150,200,629               $ (150,200,629

VMTP Shares at Liquidation Value

             (270,800,000                 (270,800,000
 

 

 

 

Total

           $ (421,000,629               $ (421,000,629
 

 

 

 

During the period ended January 31, 2017, there were no transfers between levels.

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JANUARY 31, 2017    13


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 Municipal Income Trust

 

By:       /s/ John M. Perlowski                         
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock Municipal Income Trust

Date: March 23, 2017

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 Municipal Income Trust

Date: March 23, 2017

 

By:       /s/ Neal J. Andrews                            
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock Municipal Income Trust

Date: March 23, 2017