N-Q 1 d565486dnq.htm BLACKROCK VIRGINIA MUNICIPAL BOND TRUST BLACKROCK VIRGINIA MUNICIPAL BOND 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 811-21053

Name of Fund: BlackRock Virginia Municipal Bond Trust (BHV)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Virginia Municipal Bond 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: 08/31/2013

Date of reporting period: 05/31/2013


Item 1       Schedule of Investments


Schedule of Investments May 31, 2013 (Unaudited)    BlackRock Virginia Municipal Bond Trust (BHV)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

   Par
(000)
     Value  

Virginia – 108.8%

     

Corporate – 11.2%

     

County of Chesterfield Virginia EDA, RB, Virginia Electric Power Co. Project, Series A, AMT,

     

5.60%, 11/01/31

   $ 500       $ 524,990   

County of Isle Wight Virginia IDA, RB, Series A, AMT,

     

5.70%, 11/01/27

     1,300         1,323,842   

Louisa IDA, Refunding RB, Virginia Electric & Power Co. Project, Series A, Mandatory Put Bonds,

     

5.38%, 11/01/35(a)

     1,000         1,025,420   
     

 

 

 
        2,874,252   
     

 

 

 

County/City/Special District/School District – 12.0%

     

City of Portsmouth Virginia, GO, Refunding, Series D,

     

5.00%, 7/15/34

     500         560,885   

County of Fairfax Virginia Redevelopment & Housing Authority, Refunding RB, Fairfax Redevelopment & Housing,

     

5.00%, 10/01/39

     1,500         1,610,880   

Dullles Town Center Community Development Authority, Refunding, Special Assessment Bonds, Dulles Town Center Project,

     

4.25%, 3/01/26

     500         489,845   

Mosaic District Community Development Authority, RB, Special Assessment Bonds, Series A,

     

6.88%, 3/01/36

     250         287,055   

Shops at White Oak Village Community Development Authority, Special Assessment Bonds,

     

5.30%, 3/01/17

     144         153,288   
     

 

 

 
        3,101,953   
     

 

 

 

Education – 15.2%

     

County of Montgomery Virginia EDA, Refunding RB, Virginia Tech Foundation, Series A,

     

5.00%, 6/01/39

     355         388,267   

Virginia College Building Authority, Refunding RB:

     

Liberty University Projects, 5.00%, 3/01/41

     1,000         1,075,110   

Washington & Lee University Project (NPFGC), 5.25%, 1/01/26

     500         620,525   

Washington & Lee University Project (NPFGC), 5.25%, 1/01/31

     1,000         1,275,490   

Virginia Small Business Financing Authority, RB, Roanoke College,

     

5.75%, 4/01/41

     500         551,835   
     

 

 

 
        3,911,227   
     

 

 

 

Health – 22.7%

     

County of Fairfax Virginia EDA, Refunding RB, Goodwin House, Inc.,

     

5.00%, 10/01/27

     1,000         1,049,310   

Vinson Hall LLC, Series A,

     

5.00%, 12/01/42

     500         509,825   

County of Hanover Virginia EDA, Refunding RB, Residential Care Facility, Covenant Woods, Series A,

     

5.00%, 7/01/42

     500         502,880   

County of Henrico Virginia EDA, Refunding RB, Residential Care Facilities, United Methodist Homes,

     

4.25%, 6/01/26

     145         145,270   

Danville IDA, Refunding RB, Danville Regional Medical Center (AMBAC),

     

5.25%, 10/01/28(b)

     1,000         1,253,130   

Peninsula Ports Authority, Refunding RB, Virginia Baptist Homes, Series C,

     

5.40%, 12/01/33

     250         236,953   

Roanoke EDA, Refunding RB, Carilion Clinic Obligation Group,

     

5.00%, 7/01/30

     795         879,262   

Roanoke IDA, Carilion Health System, Refunding RB, Series B (AGM):

     

5.00%, 7/01/20(c)

     5         6,132   

5.00%, 7/01/38

     495         527,457   

Winchester IDA, RB, Valley Health System Obligation, Series E,

     

5.63%, 1/01/44

     650         731,406   
     

 

 

 
        5,841,625   
     

 

 

 

Housing – 11.9%

     

Virginia HDA, RB:

     

Rental Housing, Series A, 5.25%, 5/01/41

     750         808,628   

 

    BLACKROCK VIRGINIA MUNICIPAL BOND TRUST    MAY 31, 2013   1


Schedule of Investments (continued)    BlackRock Virginia Municipal Bond Trust (BHV)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

   Par
(000)
     Value  

Virginia (concluded)

     

Housing (concluded)

     

Virginia HDA, RB (concluded):

     

Rental Housing, Series B, 5.63%, 6/01/39

   $ 1,000       $ 1,098,220   

Rental Housing, Series D, 4.60%, 9/01/40

     500         520,390   

Sub-Series C-3, 3.25%, 4/01/31

     650         632,983   
     

 

 

 
        3,060,221   
     

 

 

 

State – 12.3%

     

Virginia College Building Authority, RB, Public Higher Education Financing Program, Series A,

     

5.00%, 9/01/33

     1,000         1,121,470   

Virginia Public School Authority, RB, School Financing:

     

6.50%, 12/01/18(c)

     360         463,453   

1997 Resolution, Series B, 5.25%, 8/01/33

     500         569,385   

1997 Resolution, Series B, 4.00%, 8/01/36

     1,000         1,024,490   
     

 

 

 
        3,178,798   
     

 

 

 

Transportation – 10.5%

     

City of Norfolk Virginia Parking System, Refunding RB, Series B (AMBAC),

     

5.50%, 2/01/31

     465         465,442   

Richmond Metropolitan Authority, Refunding RB (NPFGC),

     

5.25%, 7/15/22

     500         578,540   

Virginia Port Authority, RB,

     

5.00%, 7/01/36

     500         559,525   

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

     

6.00%, 1/01/37

     1,000         1,110,790   
     

 

 

 
        2,714,297   
     

 

 

 

Utilities – 13.0%

     

City of Portsmouth Virginia, GO, Refunding, Public Utilities, Series A,

     

5.00%, 7/15/41

     700         787,773   

City of Richmond Virginia, Refunding RB, Public Utilities, Series A,

     

5.00%, 1/15/29

     250         291,057   

Virginia Resources Authority, RB, Senior, Virginia Pooled Financing Program, Series B,

     

5.00%, 11/01/33

     2,000         2,279,860   
     

 

 

 
        3,358,690   
     

 

 

 

Total Municipal Bonds in Virginia

        28,041,063   
     

 

 

 

District of Columbia – 7.6%

     

Transportation – 7.6%

     

Metropolitan Washington Airports Authority, Refunding RB:

     

First Senior Lien, Series A, 5.00%, 10/01/39

     290         316,744   

First Senior Lien, Series A, 5.25%, 10/01/44

     460         505,899   

Series B, 5.00%, 10/01/29

     1,000         1,125,440   
     

 

 

 

Total Municipal Bonds in District of Columbia

        1,948,083   
     

 

 

 

Guam – 2.5%

     

State – 1.9%

     

Government of Guam Business Privilege Tax, RB, Series A,

     

5.13%, 1/01/42

     250         271,200   

Territory of Guam, RB, Limited Obligation Bonds, Section 30, Series A,

     

5.63%, 12/01/29

     200         218,442   
     

 

 

 
        489,642   
     

 

 

 

Utility – 0.6%

     

Guam Power Authority, Refunding RB, Series A,

     

5.00%, 10/01/34

     155         168,223   
     

 

 

 

Total Municipal Bonds in Guam

        657,865   
     

 

 

 

Multi-State – 6.3%

     

Housing – 6.3%

     

Centerline Equity Issuer Trust,

     

7.20%, 10/31/52(d)(e)

     1,500         1,616,475   
     

 

 

 

Puerto Rico – 4.0%

     

State – 4.0%

     

Puerto Rico Sales Tax Financing Corp., Refunding RB, First Sub-Series A-1,

     

5.25%, 8/01/43

     1,000         1,045,850   
     

 

 

 

Total Municipal Bonds129.2%

        33,309,336   
     

 

 

 

 

 

2   BLACKROCK VIRGINIA MUNICIPAL BOND TRUST    MAY 31, 2013    


Schedule of Investments (continued)    BlackRock Virginia Municipal Bond Trust (BHV)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts(f)

   Par
(000)
     Value  

Virginia – 27.1%

     

Education – 13.0%

     

University of Virginia, Refunding RB, General,

     

5.00%, 6/01/40

   $ 2,999       $ 3,343,074   
     

 

 

 

Health – 8.6%

     

County of Fairfax Virginia IDA, Refunding RB, Inova Health System, Series A,

     

5.50%, 5/15/35

     999         1,129,991   

Virginia Small Business Financing Authority, Refunding RB, Sentara Healthcare,

     

5.00%, 11/01/40

     1,000         1,085,371   
     

 

 

 
        2,215,362   
     

 

 

 

Transportation – 5.5%

     

Virginia Commonwealth Transportation Board, RB, Capital Projects,

     

5.00%, 5/15/32

     1,259         1,426,086   
     

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts in Virginia

        6,984,522   
     

 

 

 

Puerto Rico – 2.1%

     

State – 2.1%

     

Puerto Rico Sales Tax Financing Corp., Refunding RB, Series C,

     

5.25%, 8/01/40

     500         535,590   
     

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts29.2%

        7,520,112   
     

 

 

 

Total Long-Term Investments
(Cost – $37,393,669) – 158.4%

        40,829,448   
     

 

 

 

Short-Term Securities

   Shares         

FFI Institutional Tax-Exempt Fund,

     

0.03%(g)(h)

     220,085         220,085   
     

 

 

 

Total Short-Term Securities
(Cost – $220,085) – 0.8%

        220,085   
     

 

 

 

Total Investments (Cost – $37,613,754*) – 159.2%

        41,049,533   

Other Assets Less Liabilities1.7%

        437,422   

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable(15.9%)

        (4,109,382

VRDP Shares, at Liquidation Value(45.0%)

        (11,600,000
     

 

 

 

Net Assets Applicable to Common Shares100.0%

      $ 25,777,573   
     

 

 

 
     

 

 

 

 

* As of May 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

   $ 33,422,777   
  

 

 

 

Gross unrealized appreciation

   $ 3,565,237   

Gross unrealized depreciation

     (46,031
  

 

 

 

Net unrealized appreciation

   $ 3,519,206   
  

 

 

 

Notes to Schedule of Investments

 

(a) Variable rate security. Rate shown is as of report date.

 

(b) Security is collateralized by municipal or US Treasury obligations.

 

(c) US 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.

 

(d) 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.

 

(e) Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity.

 

(f) Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction.

 

    BLACKROCK VIRGINIA MUNICIPAL BOND TRUST    MAY 31, 2013   3


Schedule of Investments (continued)    BlackRock Virginia Municipal Bond Trust (BHV)
  

 

(g) Investments in issuers considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate

   Shares Held at
August  31,

2012
     Net Activity      Shares Held at
May  31,

2013
     Income  

FFI Institutional Tax-Exempt Fund

     65,431         154,654         220,085       $ 37   

 

(h) Represents the current yield as of report date.

Portfolio Abbreviations

 

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:   AGM   Assured Guaranty Municipal Corp.   HDA   Housing Development Authority
  AMBAC   American Municipal Bond Assurance Corp.   IDA   Industrial Development Authority
  AMT   Alternative Minimum Tax (subject to)   NPFGC   National Public Finance Guarantee Corp.
  EDA   Economic Development Authority   RB   Revenue Bonds
  GO   General Obligation Bonds    
       

 

4   BLACKROCK VIRGINIA MUNICIPAL BOND TRUST    MAY 31, 2013    


Schedule of Investments (concluded)    BlackRock Virginia Municipal Bond Trust (BHV)
  

 

 

For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

 

Fair Value Measurements – Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

   

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)

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.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment 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, please refer to the Trust’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the Trust’s investments categorized in the disclosure hierarchy as of May 31, 2013:

 

      Level 1      Level 2      Level 3      Total  

Assets:

           

Investments:

           

Long-Term Investments1

           $ 40,829,448               $ 40,829,448   

Short-Term Securities

   $  220,085                         220,085   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 220,085       $  40,829,448               $ 41,049,533   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

1 

See above Schedule of Investments for values in each sector.

Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of May 31, 2013, such liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1      Level 2     Level 3      Total  

Liabilities:

          

TOB trust certificates

           $ (4,107,550           $ (4,107,550

VRDP shares

             (11,600,000             (11,600,000
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

           $ (15,707,550           $ (15,707,550
  

 

 

    

 

 

   

 

 

    

 

 

 

There were no transfers between levels during the period ended May 31, 2013.

 

    BLACKROCK VIRGINIA MUNICIPAL BOND TRUST    MAY 31, 2013   5


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 Virginia Municipal Bond Trust

   
By:  

/s/ John M. Perlowski

   
  John M. Perlowski    
 

Chief Executive Officer (principal executive officer) of

BlackRock Virginia Municipal Bond Trust

Date: July 25, 2013

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 Virginia Municipal Bond Trust

Date: July 25, 2013    
By:  

/s/ Neal J. Andrews

   
  Neal J. Andrews    
 

Chief Financial Officer (principal financial officer) of

BlackRock Virginia Municipal Bond Trust

Date: July 25, 2013