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 811-10335

 

Name of Fund: BlackRock New Jersey Municipal Income Trust (BNJ)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock New Jersey 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: 07/31/2014

 

Date of reporting period: 04/30/2014

 

Item 1 – Schedule of Investments

 
 
Schedule of Investments April 30, 2014 (Unaudited) BlackRock New Jersey Municipal Income Trust (BNJ)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds Par
(000)		   Value  

New Jersey — 136.4%

Corporate — 9.4%  
County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel, Sub-Series B, 6.25%, 1/01/37 (a)(b) $ 1,790 $ 124,190  
County of Salem New Jersey Pollution Control Financing Authority, Refunding RB, Atlantic City Electric, Series A, 4.88%, 6/01/29   2,400   2,551,104  
New Jersey EDA, RB, Continental Airlines, Inc. Project, Series B, AMT, 5.63%, 11/15/30   5,160   5,303,035  
New Jersey EDA, Refunding RB, New Jersey American Water Co., Inc. Project, AMT:          
  Series A, 5.70%, 10/01/39   1,500   1,624,755  
  Series B, 5.60%, 11/01/34   1,275   1,392,747  
   
    10,995,831  
 
County/City/Special District/School District — 15.7%  
City of Margate New Jersey, GO, Refunding, Improvement, 5.00%, 1/15/28   1,085   1,188,976  
City of Perth Amboy New Jersey, GO, CAB, Refunding (AGM), 5.00%, 7/01/35   175   180,941  
City of Perth Amboy New Jersey, GO, Refunding, CAB (AGM), 5.00%, 7/01/34   1,075   1,115,399  
County of Essex New Jersey Improvement Authority, Refunding RB, Project Consolidation (NPFGC):          
  5.50%, 10/01/28   1,440   1,775,419  
  5.50%, 10/01/29   2,630   3,231,349  
County of Hudson New Jersey Improvement Authority, RB, Harrison Parking Facility Project, Series C (AGC):          
  5.25%, 1/01/39   2,000   2,131,720  
  5.38%, 1/01/44   2,400   2,555,976  
County of Union New Jersey Improvement Authority, LRB, Guaranteed Lease, Family Court Building Project, 5.00%, 5/01/42   890   975,324  
County of Union New Jersey Utilities Authority, Refunding RB, Solid Waste System, County Deficiency Agreement, Series A, 5.00%, 6/15/41   2,185   2,354,294  
         
Municipal Bonds Par
(000)		   Value  

New Jersey (continued)

County/City/Special District/School District (concluded)  
New Jersey EDA, Refunding RB, Special Assessment, Kapkowski Road Landfill Project, 6.50%, 4/01/28 $ 2,500 $ 2,883,625  
   
    18,393,023  
 
Education — 23.9%  
New Jersey EDA, RB:          
  MSU Student Housing Project Provide, 5.88%, 6/01/42   1,500   1,622,760  
  The Team Academy Charter School Project, 6.00%, 10/01/33   1,490   1,578,953  
New Jersey Educational Facilities Authority, RB:          
  Higher Educational Capital Improvement Fund, Series A, 5.00%, 9/01/32   2,070   2,278,739  
  Montclair State University, Series J, 5.25%, 7/01/38   580   638,209  
New Jersey Educational Facilities Authority, Refunding RB:          
  College of New Jersey, Series D (AGM), 5.00%, 7/01/35   3,230   3,499,640  
  Georgian Court University, Series D, 5.00%, 7/01/33   250   255,045  
  Kean University, Series A, 5.50%, 9/01/36   2,060   2,310,784  
  Montclaire State University, Series A, 5.00%, 7/01/44   4,570   4,972,434  
  New Jersey Institute of Technology, Series H, 5.00%, 7/01/31   660   717,328  
  Ramapo College, Series B, 5.00%, 7/01/42   265   283,489  
  University of Medicine & Dentistry, Series B, 7.50%, 6/01/19 (c)   1,450   1,890,061  
New Jersey Higher Education Student Assistance Authority, Refunding RB:          
  Series 1, AMT, 5.75%, 12/01/29   2,055   2,251,622  
  Series 1A, 5.00%, 12/01/25   455   477,577  
  Series 1A, 5.00%, 12/01/26   295   309,638  
  Series 1A, 5.25%, 12/01/32   500   536,945  
New Jersey Institute of Technology, RB, Series A, 5.00%, 7/01/42   970   1,037,677  
         

 

     
  BlackRock New Jersey Municipal Income Trust April 30, 2014 1
           

 

 

 
 

Schedule of Investments (continued) BlackRock New Jersey Municipal Income Trust (BNJ)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds Par
(000)		   Value  

New Jersey (continued)

Education (concluded)  
Rutgers - The State University of New Jersey, Refunding RB, Series L, 5.00%, 5/01/43 $ 3,145 $ 3,443,020  
   
    28,103,921  
 
Health — 16.2%  
New Jersey EDA, RB:          
  1st Mortgage, Lions Gate Project, Series A, 5.75%, 1/01/25   500   501,420  
  1st Mortgage, Lions Gate Project, Series A, 5.88%, 1/01/37   855   848,305  
  Masonic Charity Foundation Project, 5.50%, 6/01/31   875   875,814  
New Jersey EDA, Refunding RB:          
  First Mortgage, Winchester, Series A, 5.75%, 11/01/24   4,050   4,072,477  
  Seabrook Village, Inc. Facility, 5.25%, 11/15/26   1,790   1,816,277  
New Jersey Health Care Facilities Financing Authority, RB:          
  Meridian Health System Obligated Group, Series I (AGC), 5.00%, 7/01/38   730   762,587  
  Robert Wood Johnson University Hospital, Series A, 5.50%, 7/01/43   750   819,938  
  Virtua Health, Series A (AGC), 5.50%, 7/01/38   1,250   1,330,700  
New Jersey Health Care Facilities Financing Authority, Refunding RB:          
  AHS Hospital Corp., 6.00%, 7/01/37   900   1,034,757  
  AHS Hospital Corp., 6.00%, 7/01/41   1,045   1,208,605  
  Meridian Health System Obligated Group, 5.00%, 7/01/26   970   1,068,950  
  Robert Wood Johnson University Hospital, 5.00%, 7/01/31   500   527,185  
  St. Barnabas Health Care System, Series A, 5.00%, 7/01/29   1,750   1,788,903  
  St. Barnabas Health Care System, Series A, 5.63%, 7/01/32   580   629,178  
         
Municipal Bonds Par
(000)		   Value  

New Jersey (continued)

Health (concluded)  
New Jersey Health Care Facilities Financing Authority, Refunding RB (concluded):          
  St. Barnabas Health Care System, Series A, 5.63%, 7/01/37 $ 1,605 $ 1,724,669  
   
    19,009,765  
 
Housing — 9.8%  
County of Middlesex New Jersey Improvement Authority, RB, AMT (Fannie Mae):          
  Administration Building Residential Project, 5.35%, 7/01/34   1,400   1,400,280  
  New Brunswick Apartments Rental Housing, 5.30%, 8/01/35   4,315   4,317,805  
New Jersey Housing & Mortgage Finance Agency, RB:          
  M/F Housing, Series A, 4.75%, 11/01/29   1,185   1,235,043  
  S/F Housing, Series AA, 6.38%, 10/01/28   645   672,025  
  S/F Housing, Series AA, 6.50%, 10/01/38   685   691,569  
  S/F Housing, Series CC, 5.00%, 10/01/34   995   1,038,999  
Newark Housing Authority, RB, M/F Housing, Series A, 5.00%, 12/01/30   2,000   2,206,460  
   
    11,562,181  
 
State — 21.1%  
Garden State Preservation Trust, RB, CAB, Series B (AGM), 0.00%, 11/01/26 (d)   6,000   4,015,260  
New Jersey EDA, RB:          
  Kapkowski Road Landfill Project, Series B, AMT, 6.50%, 4/01/31   5,000   5,719,150  
  Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/25   1,365   1,607,055  
  School Facilities Construction, Series CC-2, 5.00%, 12/15/31   1,525   1,654,442  
  School Facilities Construction, Series Z (AGC), 5.50%, 12/15/34   3,000   3,399,000  
         

 

     
  BlackRock New Jersey Municipal Income Trust April 30, 2014 2
           

 

 

 
 

Schedule of Investments (continued) BlackRock New Jersey Municipal Income Trust (BNJ)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds Par
(000)		   Value  

New Jersey (continued)

State (concluded)  
New Jersey EDA, Refunding RB, Cigarette Tax:          
  5.00%, 6/15/26 $ 810 $ 873,796  
  5.00%, 6/15/29   1,000   1,058,780  
  (AGM), 5.00%, 6/15/22   2,940   3,360,920  
New Jersey Health Care Facilities Financing Authority, RB, Hospital Asset Transformation Program, Series A, 5.25%, 10/01/38   2,350   2,458,147  
State of New Jersey, COP, Equipment Lease Purchase, Series A, 5.25%, 6/15/28   600   657,096  
   
    24,803,646  
 
Transportation — 39.6%  
Delaware River Port Authority, RB:          
  5.00%, 1/01/40   1,380   1,487,392  
  Series D, 5.00%, 1/01/40   800   843,912  
New Jersey EDA, RB, Private Activity Bond, The Goethals Bridge Replacement Project, AMT, 5.38%, 1/01/43   4,500   4,737,105  
New Jersey State Turnpike Authority, RB:          
  Series A, 5.00%, 1/01/38   4,000   4,284,840  
  Series E, 5.25%, 1/01/40   1,970   2,152,205  
New Jersey Transportation Trust Fund Authority, RB:          
  CAB, Transportation System, Series C (AGM), 0.00%, 12/15/32 (d)   4,000   1,623,640  
  Transportation Program, Series AA, 5.25%, 6/15/33   3,110   3,449,799  
  Transportation System, 6.00%, 12/15/38   945   1,109,307  
  Transportation System, Series A, 6.00%, 6/15/35   4,135   4,911,718  
  Transportation System, Series A, 5.88%, 12/15/38   1,770   2,056,988  
  Transportation System, Series A, 5.50%, 6/15/41   2,000   2,198,600  
  Transportation System, Series A (AGC), 5.50%, 12/15/38   1,000   1,147,620  
  Transportation System, Series AA, 5.50%, 6/15/39   2,260   2,522,431  

 

Municipal Bonds Par
(000)		   Value  

New Jersey (concluded)

Transportation (concluded)  
Port Authority of New York & New Jersey, RB, JFK International Air Terminal, Special Project:          
  Series 6, AMT (NPFGC), 5.75%, 12/01/22 $ 6,000 $ 6,037,140  
  Series 8, 6.00%, 12/01/42   1,430   1,570,240  
Port Authority of New York & New Jersey, Refunding ARB, Consolidated:          
  152nd Series, AMT, 5.75%, 11/01/30   1,750   1,946,997  
  166th Series, 5.25%, 7/15/36   4,000   4,460,640  
   
    46,540,574  
 
Utility — 0.7%  
Rahway Valley Sewerage Authority, RB, CAB, Series A (NPFGC), 0.00%, 9/01/33 (d)   2,000   836,440  
 
Total Municipal Bonds — 136.4%   160,245,381  
 

 

 

Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts (e)

New Jersey — 25.6%

County/City/Special District/School District — 5.2%  
County of Union New Jersey Utilities Authority, Refunding LRB, Resource Recovery Facility, Covanta Union, Inc., Series A, AMT, 5.25%, 12/01/31   5,710   6,118,836  
 
Education — 1.4%  
Rutgers - The State University of New Jersey, RB, Series F, 5.00%, 5/01/39   1,499   1,642,050  
 
State — 5.5%  
New Jersey EDA, RB, School Facilities Construction (AGC):          
  6.00%, 12/15/18 (c)   987   1,139,376  
  6.00%, 12/15/34   2,013   2,323,434  
New Jersey EDA, Refunding RB, 5.00%, 3/01/29 (f)   2,787   3,075,794  
   
    6,538,604  
 
Transportation — 13.5%  
New Jersey State Turnpike Authority, RB, Series A, 5.00%, 1/01/38 (f)   4,700   5,034,687  
         

 

     
  BlackRock New Jersey Municipal Income Trust April 30, 2014 3
           

 

 

 
 

Schedule of Investments (continued) BlackRock New Jersey Municipal Income Trust (BNJ)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts (e)

 Par
(000)		   Value  
 

New Jersey (concluded)

Transportation (concluded)  
New Jersey Transportation Trust Fund Authority, RB, Transportation System:          
  Series A (AMBAC), 5.00%, 12/15/32 $ 2,000 $ 2,203,260  
  Series B, 5.25%, 6/15/36 (f)   2,501   2,713,502  
Port Authority of New York & New Jersey, RB, Consolidated, 169th Series, AMT, 5.00%, 10/15/41   3,495   3,678,417  
Port Authority of New York & New Jersey, Refunding RB, Consolidated, 152nd Series, AMT, 5.25%, 11/01/35   2,039   2,201,558  
   
    15,831,424  
 

Total Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts — 25.6%

   30,130,914  
 
Total Long-Term Investments
(Cost — $180,768,426) — 162.0%		   190,376,295  
 
         
Short-Term Securities
Shares		   Value  
 
   
BIF New Jersey Municipal Money Fund, 0.00% (g)(h)   1,171,991 $ 1,171,991  
 
Total Short-Term Securities
(Cost — $1,171,991) — 1.0%		   1,171,991  
 
Total Investments
(Cost — $181,940,417*) — 163.0%		   191,548,286  
Other Assets Less Liabilities — 2.0%   2,347,906  
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (14.7%)   (17,307,678 )
VMTP Shares, at Liquidation Value — (50.3%)   (59,100,000 ) 
   
Net Assets Applicable to Common Shares — 100.0% $ 117,488,514  
 

 

* As of April 30, 2014, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:  
      
Tax cost $ 164,811,947  
   
Gross unrealized appreciation $ 11,530,947  
Gross unrealized depreciation   (2,095,890 )
   
Net unrealized appreciation $ 9,435,057  
   
         
 

 

Notes to Schedule of Investments

(a) Non-income producing security.
(b) Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(c) 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.
(d) Zero-coupon bond.
(e) Represent bonds transferred to a TOB. In exchange for which the Trust acquired residual interest certificates. These bonds serve as collateral in a financing transaction.
(f) All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from June 15, 2019 to September 1, 2020 is $7,517,578.
(g) Investments in issuers considered to be an affiliate of the Trust during the period ended April 30, 2014, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
   
     

 

 
  Affiliate   Shares
Held at
July 31, 2013		   Net
Activity		   Shares
Held at
April 30, 2014		   Income  
 
  BIF New Jersey Municipal Money Fund   4,818,896   (3,646,905)   1,171,991   —  
 
                                           

 

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

 

Portfolio Abbreviations

   
AGC Assured Guarantee Corp.
AGM Assured Guaranty Municipal Corp.

 

     
  BlackRock New Jersey Municipal Income Trust April 30, 2014 4
           

 

 

 
 

Schedule of Investments (continued) BlackRock New Jersey Municipal Income Trust (BNJ)

 

AMBAC American Municipal Bond Assurance Corp.
AMT Alternative Minimum Tax (subject to)
ARB Airport Revenue Bonds
CAB Capital Appreciation Bonds
COP Certificates of Participation
EDA Economic Development Authority
GO General Obligation Bonds
LRB Lease Revenue Bonds
M/F Multi-Family
NPFGC National Public Finance Guarantee Corp.
RB Revenue Bonds
S/F Single-Family
     

 


•
Financial futures contracts outstanding as of April 30, 2014 were as follows:

 

Contracts
Sold		 Issue Exchange Expiration Notional
Value		 Unrealized
Depreciation
(104) 10-Year U.S. Treasury Note Chicago Board of Trade June 2014 $12,939,875 $(11,911)
           

 

•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 rating group indexes, and/or as defined by the investment advisor. 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 and derivative financial instruments. 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 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.

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 and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument 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, please refer to the Trust's most recent financial statements as contained in its semi-annual report.

 

     
  BlackRock New Jersey Municipal Income Trust April 30, 2014 5
           

 

 

 
 

Schedule of Investments (concluded) BlackRock New Jersey Municipal Income Trust (BNJ)

 

The following tables summarize the Trust's investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2014:

 

  Level 1   Level 2   Level 3   Total  
Assets:    
Investments:  
  Long-Term Investments1   — $ 190,376,295   — $ 190,376,295  
  Short-Term Securities $ 1,171,991   —   —   1,171,991  
Total $ 1,171,991 $ 190,376,295   — $ 191,548,286  
                                 

 

1 See above Schedule of Investments for values in each sector.
 

 

  Level 1   Level 2   Level 3   Total  
Derivative Financial Instruments2  
Liabilities:  
Interest rate contracts $ (11,911)   —   — $ (11,911)  
                               

 

2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

 

The carrying amount for certain of the Trust's assets and/or liabilities approximates fair value for financial reporting purposes. As of April 30, 2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:
  

 

  Level 1   Level 2   Level 3   Total  
Assets:    
  Cash pledged for financial futures contracts $ 160,000   —    — $ 160,000   
Liabilities:    
  TOB trust certificates   — $ (17,301,282)   —   (17,301,282)  
  VMTP Shares   —   (59,100,000)   —   (59,100,000)  
Total $ 160,000 $ (76,401,282)   — $ (76,241,282)  
                                   

 


There were no transfers between levels during the period ended April 30, 2014.

 

     
  BlackRock New Jersey Municipal Income Trust April 30, 2014 6
           

 
 
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 New Jersey Municipal Income Trust
     
  By: /s/ John M. Perlowski
  John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock New Jersey Municipal Income Trust
     
  Date: June 23, 2014
     
  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 New Jersey Municipal Income Trust
     
  Date: June 23, 2014
     
  By: /s/ Neal J. Andrews
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock New Jersey Municipal Income Trust
     
  Date: June 23, 2014