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: 07/31/2013

 

Date of reporting period: 04/30/2013

 

Item 1 – Schedule of Investments

 
  
Schedule of Investments  April 30, 2013 (Unaudited)

BlackRock New Jersey Municipal Income Trust (BNJ)

(Percentages shown are based on Net Assets)

    Par
(000)
  Value  
Municipal Bonds  

 

New Jersey — 121.9%

 
Corporate — 9.2%  
Middlesex County Improvement Authority, RB, Subordinate, Heldrich Center Hotel, Series B, 6.25%, 1/01/37 (a)(b) $ 1,790 $ 125,282  
New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT (c):  
  7.00%, 11/15/30   3,450   3,462,938  
  7.20%, 11/15/30   2,000   2,007,540  
New Jersey EDA, Refunding RB, New Jersey American Water Co., Inc. Project, AMT:  
  Series A, 5.70%, 10/01/39   1,500   1,674,690  
  Series B, 5.60%, 11/01/34   1,275   1,448,489  
Salem County Pollution Control Financing Authority, Refunding RB, Atlantic City Electric, Series A, 4.88%, 6/01/29   2,400   2,656,608  
         11,375,547  
County/City/Special District/School District — 14.6%  
Bergen County New Jersey Improvement Authority, Refunding RB, Fair Lawn Community Center, Inc. Project, 5.00%, 9/15/34   785   927,218  
City of Margate City New Jersey, GO, Refunding, Improvement, 5.00%, 1/15/28   1,085   1,249,421  
City of Perth Amboy New Jersey, GO, Refunding, CAB (AGM):  
  5.00%, 7/01/34   1,075   1,151,218  
  5.00%, 7/01/35   175   186,914  
Essex County Improvement Authority, Refunding RB, Project Consolidation (NPFGC):  
  5.50%, 10/01/28   1,440   1,907,050  
  5.50%, 10/01/29   2,630   3,489,615  
Hudson County Improvement Authority, RB, Harrison Parking Facility Project, Series C (AGC):  
  5.25%, 1/01/39   2,000   2,218,620  
  5.38%, 1/01/44   2,400   2,663,328  
Newark Housing Authority, Refunding RB, Newark Redevelopment Project (NPFGC), 4.38%, 1/01/37   2,600   2,621,346  
Union County Improvement Authority, RB, Guaranteed Lease, Family Court Building Project, 5.00%, 5/01/42   1,515   1,716,707  
  18,131,437  
Education — 14.6%  
New Jersey EDA, RB:  
  MSU Student Housing Project Provide, 5.88%, 6/01/42   1,500   1,706,190  
    Par
(000)
  Value  
Municipal Bonds  

 

New Jersey (continued)

 
Education (concluded)    
New Jersey EDA, RB (concluded):  
  School Facilities Construction, Series CC-2, 5.00%, 12/15/31 $ 1,525 $ 1,733,971  
New Jersey Educational Facilities Authority, RB, Montclair State University, Series J, 5.25%, 7/01/38   580   656,885  
New Jersey Educational Facilities Authority, Refunding RB:  
  College of New Jersey, Series D (AGM), 5.00%, 7/01/35   3,230   3,560,687  
  Georgian Court University, Series D, 5.00%, 7/01/33   250   263,822  
  Kean University, Series A, 5.50%, 9/01/36   2,060   2,351,243  
  New Jersey Institute of Technology, Series H, 5.00%, 7/01/31   660   741,385  
  Ramapo College, Series B, 5.00%, 7/01/42   265   300,831  
  University of Medicine & Dentistry, Series B, 7.50%, 12/01/32   1,450   1,804,061  
New Jersey Higher Education Student Assistance Authority, Refunding RB:  
  Series 1, AMT, 5.75%, 12/01/29   2,055   2,318,862  
  Series 1A, 5.00%, 12/01/25   530   588,337  
  Series 1A, 5.00%, 12/01/26   345   380,580  
  Series 1A, 5.25%, 12/01/32   500   553,225  
New Jersey Institute of Technology, RB, Series A, 5.00%, 7/01/42   970   1,110,242  
  18,070,321  
Health — 17.1%  
New Jersey EDA, RB:  
  First Mortgage, Lions Gate Project, Series A, 5.75%, 1/01/25   500   506,815  
  First Mortgage, Lions Gate Project, Series A, 5.88%, 1/01/37   855   861,669  
  Masonic Charity Foundation Project, 5.50%, 6/01/31   875   876,470  
New Jersey EDA, Refunding RB:  
  First Mortgage, Winchester, Series A, 5.75%, 11/01/24   4,050   4,148,091  
  Seabrook Village, Inc. Facility, 5.25%, 11/15/26   1,790   1,867,972  
New Jersey Health Care Facilities Financing Authority, RB (AGC):  
  Meridian Health, Series I, 5.00%, 7/01/38   740   797,846  
  Virtua Health, 5.50%, 7/01/38   1,250   1,389,038  
                       
BLACKROCK NEW JERSEY MUNICIPAL INCOME TRUSTAPRIL 30, 20131
 
Schedule of Investments  (continued)

BlackRock New Jersey Municipal Income Trust (BNJ)

(Percentages shown are based on Net Assets)

    Par
(000)
  Value  
Municipal Bonds  

 

New Jersey (continued)

 
Health (concluded)    
New Jersey Health Care Facilities Financing Authority, Refunding RB:  
  AHS Hospital Corp., 6.00%, 7/01/37 $ 900 $ 1,114,164  
  AHS Hospital Corp., 6.00%, 7/01/41   1,045   1,285,068  
  Barnabas Health, Series A, 5.00%, 7/01/25   140   161,931  
  Barnabas Health, Series A, 5.63%, 7/01/32   580   658,068  
  Barnabas Health, Series A, 5.63%, 7/01/37   1,605   1,810,167  
  Kennedy Health System, 5.00%, 7/01/42   500   551,355  
  Meridian Health System Obligated Group Issue, 5.00%, 7/01/26   970   1,120,272  
  Robert Wood Johnson, 5.00%, 7/01/31   500   553,015  
  South Jersey Hospital, 5.00%, 7/01/46   1,650   1,709,021  
  St. Barnabas Health Care System, Series A, 5.00%, 7/01/29   1,750   1,837,115  
  21,248,077  
Housing — 10.0%  
Middlesex County Improvement Authority, RB, AMT (Fannie Mae):  
  Administration Building Residential Project, 5.35%, 7/01/34   1,400   1,401,722  
  New Brunswick Apartments Rental Housing, 5.30%, 8/01/35   4,325   4,330,536  
New Jersey State Housing & Mortgage Finance Agency, RB:  
  M/F Housing, Series A, 4.75%, 11/01/29   1,185   1,281,222  
  M/F Housing, Series A, 4.55%, 11/01/43   1,540   1,603,926  
  S/F Housing, Series AA, 6.38%, 10/01/28   885   959,809  
  S/F Housing, Series AA, 6.50%, 10/01/38   1,005   1,044,074  
  S/F Housing, Series CC, 5.00%, 10/01/34   1,130   1,224,287  
  S/F Housing, Series X, AMT, 4.85%, 4/01/16   530   545,455  
  12,391,031  
State — 28.5%  
Garden State Preservation Trust, RB, CAB, Series B (AGM), 2.95%, 11/01/26 (d)   6,000   4,041,240  
    Par
(000)
  Value  
Municipal Bonds  

 

New Jersey (continued)

 
State (concluded)    
New Jersey EDA, RB:  
  Kapkowski Road Landfill Project, Series B, AMT, 6.50%, 4/01/31 $ 5,000 $ 5,930,700  
  Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/25   1,365   1,704,639  
  School Facilities Construction, Series KK, 5.00%, 3/01/35   1,000   1,139,040  
  School Facilities Construction, Series KK, 5.00%, 3/01/38   785   893,471  
  School Facilities Construction, Series Z (AGC), 5.50%, 12/15/34   3,000   3,477,030  
New Jersey EDA, Refunding RB:  
  Cigarette Tax (AGM), 5.00%, 6/15/22   2,940   3,524,501  
  Cigarette Tax, 5.00%, 6/15/26   810   927,766  
  Cigarette Tax, 5.00%, 6/15/29   1,000   1,123,750  
  Kapkowski Road Landfill Project, 6.50%, 4/01/28   2,500   2,998,025  
  School Facilities Construction, Series GG, 5.25%, 9/01/26   3,500   4,152,680  

New Jersey Health Care Facilities Financing Authority, RB, Hospital Asset Transformation Program, Series A, 5.25%, 10/01/38

  2,350   2,567,117  
State of New Jersey, COP, Equipment Lease Purchase, Series A:  
  5.25%, 6/15/27   2,000   2,264,460  
  5.25%, 6/15/28   600   676,434  
  35,420,853  
Transportation — 25.2%  
Delaware River Port Authority of Pennsylvania & New Jersey, RB, Series D, 5.00%, 1/01/40   800   892,960  
New Jersey State Turnpike Authority, RB, Series E, 5.25%, 1/01/40   1,970   2,205,967  
New Jersey State Turnpike Authority, Refunding RB:  
  Series B, 5.00%, 1/01/30   1,415   1,641,924  
New Jersey Transportation Trust Fund Authority, RB, Transportation System:  
  CAB, Series C (AGM), 4.44%, 12/15/32 (d)   4,000   1,689,560  
  Series A, 6.00%, 6/15/35   4,135   5,050,117  
  Series A, 5.88%, 12/15/38   1,770   2,092,228  
  Series A, 6.00%, 12/15/38   945   1,126,516  
  Series A, 5.50%, 6/15/41   2,000   2,343,920  
  Series A (AGC), 5.50%, 12/15/38   1,000   1,153,890  
  Series B, 5.00%, 6/15/42   1,320   1,463,840  
                       
BLACKROCK NEW JERSEY MUNICIPAL INCOME TRUSTAPRIL 30, 20132
 
Schedule of Investments (continued)

BlackRock New Jersey Municipal Income Trust (BNJ)

(Percentages shown are based on Net Assets)

    Par
(000)
  Value  
Municipal Bonds  

 

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 $ 6,023,040  
  Series 8, 6.00%, 12/01/42   1,430   1,674,330  
Port Authority of New York & New Jersey, Refunding RB, Consolidated 152nd Series, AMT, 5.75%, 11/01/30   1,750   2,036,212  
South Jersey Transportation Authority, Refunding RB, Series A:  
  5.00%, 11/01/27   1,000   1,162,800  
  5.00%, 11/01/28   305   352,928  
  5.00%, 11/01/29   305   351,570  
  31,261,802  
Utilities — 2.7%  
Rahway Valley Sewerage Authority, RB, CAB, Series A (NPFGC), 4.23%, 9/01/33 (d) 2,000   853,760  
Union County Utilities Authority, Refunding RB, New Jersey Solid Waste System, County Deficiency Agreement, Series A, 5.00%, 6/15/41   2,185   2,504,731  
  3,358,491  
Total Municipal Bonds in New Jersey   151,257,559  
__________________________

 

Puerto Rico — 10.8%

 
Housing — 3.4%  
Puerto Rico Housing Finance Authority, RB, Mortgage-Backed Securities, Series B, AMT (Ginnie Mae), 5.30%, 12/01/28   2,095   2,102,856  
Puerto Rico Housing Finance Authority, Refunding RB, Mortgage-Backed Securities, Series A (Ginnie Mae), 5.20%, 12/01/33   2,095   2,103,862  
  4,206,718  
State — 7.4%  
Puerto Rico Public Buildings Authority, RB, CAB, Series D (AMBAC), 5.45%, 7/01/17 (e)   1,250   1,488,738  
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A:  
  5.75%, 8/01/37   3,075   3,299,536  
  6.00%, 8/01/42   2,250   2,462,760  
Puerto Rico Sales Tax Financing Corp., Refunding RB, First Sub-Series C, 6.00%, 8/01/39   1,740   1,915,670  
  9,166,704  
Total Municipal Bonds in Puerto Rico   13,373,422  
Total Municipal Bonds – 132.7%   164,630,981  
                             

 

    Par
(000)
  Value  
Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (f)  

 

New Jersey — 25.4%

 
Education — 1.4%  
Rutgers State University of New Jersey, Refunding RB, Series F, 5.00%, 5/01/39 $ 1,499 $ 1,725,905  
State — 5.5%  
New Jersey EDA, RB, School Facilities Construction (AGC):  
  6.00%, 12/15/18 (e)   1,500   1,786,365  
  6.00%, 12/15/34   1,500   1,786,365  
New Jersey EDA, Refunding RB, School Facilities Construction, Series NN, 5.00%, 3/01/29 (g)   2,788   3,247,119  
  6,819,849  
Transportation — 13.4%  
New Jersey State Turnpike Authority, RB, Series A, 5.00%, 1/01/38 (g)   4,700   5,268,277  
New Jersey Transportation Trust Fund Authority, RB, Transportation System:  
  Series A (AGM) (AMBAC), 5.00%, 12/15/32   2,000   2,263,220  
  Series B, 5.25%, 6/15/36 (g)   2,500   2,856,350  
Port Authority of New York & New Jersey, RB, Consolidated, 152nd Series, AMT, 5.00%, 10/15/41   3,495   3,925,444  
Port Authority of New York & New Jersey, Refunding RB, Consolidated, 152nd Series, AMT, 5.25%, 11/01/35   2,039   2,245,996  
  16,559,287  
Utilities — 5.1%  
Union County Utilities Authority, Refunding LRB, New Jersey Resource Recovery Facility, Covanta Union, Inc.,  Series A, AMT, 5.25%, 12/01/31   5,710   6,378,013  
Total Municipal Bonds in New Jersey   31,483,054  
__________________________

Puerto Rico — 1.0%

 
State — 1.0%  
Puerto Rico Sales Tax Financing Corp., Refunding RB, Senior Series C, 5.25%, 8/01/40   1,180   1,278,447  
Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts – 26.4%   32,761,501  
Total Long-Term Investments
(Cost – $181,790,652) – 159.1%
  197,392,482  
                         
BLACKROCK NEW JERSEY MUNICIPAL INCOME TRUSTAPRIL 30, 20133
 
Schedule of Investments (continued)

BlackRock New Jersey Municipal Income Trust (BNJ)

(Percentages shown are based on Net Assets)

   
Shares
  Value  
Short-Term Securities  
BIF New Jersey Municipal Money Fund, 0.00% (h)(i)   545,343 $ 545,343  
Total Short-Term Securities
(Cost – $545,343) – 0.4%
  545,343  
   

  Value  
Total Investments (Cost - $182,335,995*) – 159.5% $ 197,937,825  
Other Assets Less Liabilities – 2.5%   3,172,654  
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable – (14.4)%   (17,901,170)  
VMTP Shares, at Liquidation Value – (47.6)%   (59,100,000)  
Net Assets Applicable to Common Shares – 100.0% $ 124,109,309  
 
* As of April 30, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:  
  Tax cost $ 164,458,369  
  Gross unrealized appreciation $ 17,254,387  
  Gross unrealized depreciation   (1,666,688)  
Net unrealized appreciation $ 15,587,699  
                           

 

Notes to Schedule of Investments

 
(a) Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.  
(b) Non-income producing security.  
(c) Variable rate security. Rate shown is as of report date.  
(d) Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.  
(e) 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.  
(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.  
(g) 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 6/15/19 to 9/01/20, is $7,518,064.  
(h) Investments in issuers considered to be an affiliate of the Trust during the period ended April 30, 2013, 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, 2012
  Net
Activity
  Shares
Held at
April 30, 2013
  Income  
  BIF New Jersey Municipal Money Fund   2,329,356   (1,784,013)   545,343 $ 1  
                     
(i) 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:    
AGC Assured Guaranty Corp.  
AGM Assured Guaranty Municipal Corp.  
AMBAC American Municipal Bond Assurance Corp.  
AMT Alternative Minimum Tax (subject to)  
CAB Capital Appreciation Bonds  
COP Certificates of Participation  
EDA Economic Development Authority  
Fannie Mae Federal National Mortgage Association  
Ginnie Mae Government National Mortgage Association  
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  
    
                                                 
BLACKROCK NEW JERSEY MUNICIPAL INCOME TRUSTAPRIL 30, 20134
 
Schedule of Investments (continued)

BlackRock New Jersey Municipal Income Trust (BNJ)

Financial futures contracts as of April 30, 2013 were as follows:  
  Contracts Sold   Issue   Exchange   Expiration   Notional
Value
Unrealized  Depreciation  
  (114)   10-Year US Treasury Note   Chicago Board of Trade   June 2013 $ 15,202,969 $ (154,321)  
   
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 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 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 and 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 level in the fair value hierarchy within which the fair value measurement falls in its entirety 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 and other significant accounting policies, 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 and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:  
  Level 1   Level 2   Level 3   Total  
Assets:  
Investments:                  
    Long-Term Investments1   $ 197,392,482   $ 197,392,482  
    Short-Term Securities $ 545,343       545,343  
Total $ 545,343 $ 197,392,482   $ 197,937,825  
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 $              (154,321)     $ (154,321)  
2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.
                                                                                           
BLACKROCK NEW JERSEY MUNICIPAL INCOME TRUSTAPRIL 30, 20135
 
Schedule of Investments (concluded)

BlackRock New Jersey Municipal Income Trust (BNJ)

Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:
  Level 1   Level 2   Level 3   Total
Assets:
 

Cash pledged for financial futures contracts

$ 150,000     $ 150,000
Liabilities:
  TOB trust certificates   $ (17,891,757)     (17,891,757)
  VMTP Shares     (59,100,000)     (59,100,000)
Total $ 150,000 $ (76,991,757)   $ (76,841,757)

 

There were no transfers between levels during the period ended April 30, 2013.

 

 

BLACKROCK NEW JERSEY MUNICIPAL INCOME TRUSTAPRIL 30, 20136
 

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 24, 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 New Jersey Municipal Income Trust

 

Date: June 24, 2013

 

By:/s/ Neal J. Andrews

Neal J. Andrews

Chief Financial Officer (principal financial officer) of

BlackRock New Jersey Municipal Income Trust

 

Date: June 24, 2013