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 811-21184

 

Name of Fund: BlackRock Florida Municipal 2020 Term Trust (BFO)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Florida Municipal 2020 Term 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: 07/31/2015

 

Date of reporting period: 10/31/2014

 

Item 1 – Schedule of Investments

 
 
Schedule of Investments October 31, 2014 (Unaudited) BlackRock Florida Municipal 2020 Term Trust (BFO)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds Par
(000)		   Value  

Florida — 96.7%

Corporate — 4.1%  
County of Hillsborough Florida IDA, Refunding RB, Tampa Electric Co. Project, Series A, 5.65%, 5/15/18 $ 1,000 $ 1,145,160  
County of Palm Beach Florida Solid Waste Authority, Refunding RB, 5.00%, 10/01/20   2,000   2,375,540  
           
    3,520,700  
   
County/City/Special District/School District — 32.0%  
City of Jacksonville Florida, Refunding RB, Better Jacksonville Sales Tax, 5.00%, 10/01/20   4,000   4,756,040  
County of Broward Florida School Board, COP, Refunding, Series A, 5.00%, 7/01/20   2,000   2,337,420  
County of Broward Florida School Board, COP, Series A (AGM), 5.25%, 7/01/22   2,500   2,838,375  
County of Hillsborough Florida, RB, (AMBAC), 5.00%, 11/01/20   5,545   6,209,235  
County of Miami-Dade Florida School Board, COP, Refunding, Series B (AGC), 5.25%, 5/01/21   4,000   4,521,240  
County of Northern Palm Beach Florida Improvement District, Refunding, Special Assessment Bonds, Water Control & Improvement District No. 43, Series B (ACA), 4.50%, 8/01/22   1,000   1,013,880  
Florida State Board of Education, GO, Refunding, Capital Outlay, Series B, 5.00%, 6/01/20   485   571,854  
Indian River County School Board, COP, Refunding Series A, 5.00%, 7/01/20 (a)   1,000   1,170,770  
Sterling Hill Community Development District, Refunding, Special Assessment Bonds, Series A, 6.10%, 5/01/23   3,015   2,338,283  
               
Municipal Bonds Par
(000)		   Value  

Florida (continued)

County/City/Special District/School District (concluded)  
Stevens Plantation Florida Imports Project Dependant Special District, RB, 6.38%, 12/31/49 (b)(c) $ 2,425 $ 1,809,802  
           
    27,566,899  
   
Education — 2.9%  
County of Orange Florida Educational Facilities Authority, RB, Rollins College Project (AMBAC), 5.25%, 12/01/22   725   815,726  
Florida State Board of Governors, Refunding RB, University of Central Florida, Series A, 5.00%, 7/01/18   500   566,025  
Florida State Higher Educational Facilities Financial Authority, Refunding RB, University of Tampa Project, Series A, 5.00%, 4/01/20   1,000   1,134,990  
           
    2,516,741  
   
Health — 15.9%  
County of Highlands Florida Health Facilities Authority, Refunding RB, Hospital, Adventist Health, Series I, 5.00%, 11/15/20   2,155   2,520,876  
County of Hillsborough Florida IDA, RB, H. Lee Moffitt Cancer Center Project, Series A, 5.25%, 7/01/22   1,500   1,613,175  
County of Marion Florida Hospital District, Refunding RB, Health System, Munroe Regional, 5.00%, 10/01/17 (d)   1,500   1,688,655  
County of Orange Florida Health Facilities Authority, Refunding RB, Mayflower Retirement Center:          
  3.00%, 6/01/15   200   202,242  
  3.00%, 6/01/16   140   142,789  
  3.00%, 6/01/17   190   196,443  
  3.25%, 6/01/18   195   203,949  
  3.50%, 6/01/19   200   211,094  
County of Palm Beach Florida Health Facilities Authority, Refunding RB:          
  Acts Retirement-Life Communities, Inc., 5.00%, 11/15/22   4,735   5,257,933  
               


 

BLACKROCK FLORIDA MUNICIPAL 2020 TERM TRUSTOCTOBER 31, 2014                     1
 
Schedule of Investments (continued) BlackRock Florida Municipal 2020 Term Trust (BFO)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds Par
(000)		   Value  

Florida (continued)
Health (concluded)  
County of Palm Beach Florida Health Facilities Authority, Refunding RB (concluded):          
  Bethesda Healthcare System Project, Series A (AGM), 5.00%, 7/01/20 $ 1,285 $ 1,501,792  
Miami Beach Health Facilities Authority, Refunding RB, 5.00%, 11/15/20   150   173,928  
           
    13,712,876  
   
Housing — 1.0%  
County of Manatee Florida Housing Finance Authority, RB, S/F Housing, Series A, AMT (Ginnie Mae, Fannie Mae & Freddie Mac), 5.90%, 9/01/40   220   224,385  
Florida Housing Finance Corp., RB, Homeowner Mortgage, Series 2, AMT (Ginnie Mae, Fannie Mae & Freddie Mac), 4.70%, 7/01/22   445   456,708  
Jacksonville Housing Finance Authority, Refunding RB, Series A-1, AMT (Ginnie Mae, Fannie Mae & Freddie Mac), 5.63%, 10/01/39   125   126,177  
           
    807,270  
   
State — 13.8%  
Florida Municipal Loan Council, RB, Series D (AGM):          
  5.00%, 10/01/19   1,050   1,216,772  
  4.00%, 10/01/20   1,105   1,223,810  
  4.00%, 10/01/21   500   551,370  
Florida Municipal Loan Council, Refunding RB:          
  CAB, Series A (NPFGC), 0.00%, 4/01/20 (e)   4,000   3,443,040  
  Series B-2 (AGM), 4.00%, 10/01/20   655   722,065  
State of Florida Board of Education, GO, Refunding, Capital Outlay, Series B, 5.00%, 6/01/20   1,000   1,193,780  
               
Municipal Bonds Par
(000)		   Value  

Florida (continued)
State (concluded)  
State of Florida Department of Environmental Protection, Refunding RB, Series A, 5.00%, 7/01/20 $ 3,000 $ 3,562,980  
           
    11,913,817  
   
Transportation — 17.0%  
County of Broward Florida Fuel System, RB, Lauderdale Fuel Faciilities, Series A (AGM), AMT, 5.00%, 4/01/20   160   181,162  
County of Broward Florida Port Facilities, Refunding RB, Series B, AMT, 5.00%, 9/01/20   2,500   2,905,400  
County of Lee Florida Transportation Facilities, Refunding RB, Series B (AMBAC):          
  5.00%, 10/01/20   2,250   2,258,302  
  5.00%, 10/01/22   3,000   3,010,500  
County of Miami-Dade Florida, Refunding RB, Series A, AMT, 5.00%, 10/01/20   1,375   1,607,829  
County of Miami-Dade Florida Expressway Authority, Refunding RB, Toll System, Series A, 5.00%, 7/01/20   1,500   1,771,650  
County of Miami-Dade Florida Transit System Sales Surtax, Refunding RB, 5.00%, 7/01/20   550   649,935  
Greater Orlando Aviation Authority, Refunding RB, Series C, 5.00%, 10/01/20   1,130   1,340,779  
Jacksonville Florida Port Authority, Refunding RB, AMT, 4.00%, 11/01/20   865   930,273  
           
    14,655,830  
   
Utilities — 10.0%  
City of North Miami Florida Beach Water Revenue, RB, 5.00%, 8/01/20   1,200   1,398,372  
County of Miami-Dade Florida Water & Sewer System, Refunding RB, Series B (AGM), 5.25%, 10/01/19   4,000   4,753,200  
Florida Governmental Utility Authority, RB, Golden Gate Utility System (AGM), 5.00%, 7/01/19   510   589,902  
Florida Governmental Utility Authority, Refunding RB:          
  4.00%, 10/01/20 (a)   500   560,050  
               


 

BLACKROCK FLORIDA MUNICIPAL 2020 TERM TRUSTOCTOBER 31, 2014                     2
 
Schedule of Investments (continued) BlackRock Florida Municipal 2020 Term Trust (BFO)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds Par
(000)		   Value  

Florida (concluded)
Utilities (concluded)  
Florida Governmental Utility Authority, Refunding RB (concluded):          
  Lehigh Utility (AGM), 5.00%, 10/01/20 $ 635 $ 746,696  
Town of Davie Florida, Refunding RB, Nova Southeastern University Project, Series B, 5.00%, 4/01/20   530   601,545  
           
    8,649,765  
   
Total Municipal Bonds in Florida   83,343,898  

Guam — 0.6%

Utilities — 0.6%  
Guam Government Waterworks Authority, RB, 5.25%, 7/01/20   100   115,100  
Guam Power Authority, Refunding RB, Series A (AGM), 5.00%, 10/01/20   310   366,817  
Total Municipal Bonds in Guam   481,917  

US Virgin Islands — 3.1%

State — 3.1%  
Virgin Islands Public Finance Authority, RB, Series A:          
  5.00%, 10/01/18   590   658,233  
  5.00%, 10/01/19   1,810   2,042,223  
Total Municipal Bonds in US Virgin Islands   2,700,456  
Total Municipal Bonds — 100.4%   86,526,271  
               

Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts (f)

 Par
(000)		   Value  

Florida — 0.3%

Housing — 0.3%  
County of Lee Florida Housing Finance Authority, RB, S/F Housing, Multi-County Program, Series A-2, AMT (Ginnie Mae), 6.00%, 9/01/40 $ 250 $ 256,997  
   
Total Long-Term Investments
(Cost — $82,654,865) — 100.7%		   86,783,268  
   
 
 
Short-Term Securities Shares  
FFI Institutional Tax-Exempt Fund, 0.03% (g)(h)   1,330,475   1,330,475  
   
Total Short-Term Securities
(Cost — $1,330,475) — 1.5%		   1,330,475  
   
Total Investments
(Cost — $83,985,340*) — 102.2%		   88,113,743  
Liabilities in Excess of Other Assets — (1.3)%   (1,106,015 )
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (0.2%)   (164,668 )
AMPS, at Liquidation Value — (0.7%)   (625,000 )
           
Net Assets Applicable to Common Shares — 100.0% $ 86,218,060  
           
               
* As of October 31, 2014, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

  
Tax cost $ 83,817,175  
       
Gross unrealized appreciation $ 5,436,801  
Gross unrealized depreciation   (1,304,873 )
       
Net unrealized appreciation $ 4,131,928  
       
         


Notes to Schedule of Investments

(a) When-issued security. Unsettled when-issued transactions were as follows:
     
 
  Counterparty   Value   Unrealized
Appreciation		  
 
  Citigroup Global Markets, Inc.   $ 1,170,770 $ 1,240  
  Wells Fargo Securities, LLC     560,050   1,580  
 
                                     
(b) Non-income producing security.
(c) Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(d) 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.
(e) Zero-coupon bond.
     

 

BLACKROCK FLORIDA MUNICIPAL 2020 TERM TRUSTOCTOBER 31, 2014                     3
 
Schedule of Investments (continued) BlackRock Florida Municipal 2020 Term Trust (BFO)

 

(f) Represent bonds transferred to a TOB. In exchange for which the Trust received cash and residual interest certificates. These bonds serve as collateral in a financing transaction.
(g) Represents the current yield as of report date.
(h) Investments in issuers considered to be an affiliate of the Trust during the period ended October 31, 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, 2014		   Net
Activity		   Shares Held at
October 31, 2014		   Income  
 
  FFI Institutional Tax-Exempt Fund   123,907   1,206,568   1,330,475 $ 59  
 
                                           

Portfolio Abbreviations

   
ACA American Capital Access Holding Ltd.
AGC Assured Guarantee 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
GO General Obligation Bonds
NPFGC National Public Finance Guarantee Corp.
RB Revenue Bonds
     

 

BLACKROCK FLORIDA MUNICIPAL 2020 TERM TRUSTOCTOBER 31, 2014                     4
 
Schedule of Investments (concluded) BlackRock Florida Municipal 2020 Term Trust (BFO)

 

• 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:

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 statement purposes. 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. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows:

  • Level 1 — unadjusted quoted prices 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)
 

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. 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 annual report.

 

 
  Level 1   Level 2   Level 3   Total  
 
Assets:    
Investments:  
  Long-Term Investments1   — $ 86,783,268   — $ 86,783,268  
  Short-Term Securities $ 1,330,475   —   —   1,330,475  
       
Total $ 1,330,475 $ 86,783,268   — $ 88,113,743  
       
                                 
1 See above Schedule of Investments for values in each sector.
The Trust may hold liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of October 31, 2014, TOB trust certificates of $164,640 is categorized as Level 2 within the disclosure hierarchy.
  
There were no transfers between levels during the period ended October 31, 2014.

 

 

BLACKROCK FLORIDA MUNICIPAL 2020 TERM TRUSTOCTOBER 31, 2014                     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 Florida Municipal 2020 Term Trust

 

  By: /s/ John M. Perlowski
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock Florida Municipal 2020 Term Trust

 

Date: December 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 Florida Municipal 2020 Term Trust

 

Date: December 23, 2014

 

  By: /s/ Neal J. Andrews
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Florida Municipal 2020 Term Trust

 

Date: December 23, 2014