UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-21348
Name of Fund: BlackRock Muni Intermediate Duration Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, BlackRock Muni Intermediate Duration Fund, Inc., 800 Scudders
Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011,
Princeton, NJ, 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 05/31/07
Date of reporting period: 06/01/06 - 11/30/06
Item 1 - Report to Stockholders
ALTERNATIVES BLACKROCK SOLUTIONS EQUITIES FIXED INCOME LIQUIDITY
REAL ESTATE
Semi-Annual Reports
NOVEMBER 30, 2006
BlackRock Muni Intermediate Duration Fund, Inc.
BlackRock Muni New York Intermediate Duration Fund, Inc.
(BLACKROCK logo)
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
These reports, including the financial information herein, are transmitted to
shareholders of BlackRock Muni Intermediate Duration Fund, Inc. and BlackRock
Muni New York Intermediate Duration Fund, Inc. for their information. This is
not a prospectus. The Funds have leveraged their Common Stock and intend to
remain leveraged by issuing Preferred Stock to provide the Common Stock
shareholders with potentially higher rates of return. Leverage creates risks
for Common Stock shareholders, including the likelihood of greater volatility
of net asset value and market price of shares of the Common Stock, and the
risk that fluctuations in the short-term dividend rates of the Preferred Stock
may affect the yield to Common Stock shareholders. Past performance results
shown in these reports should not be considered a representation of future
performance. Statements and other information herein are as dated and are
subject to change.
A description of the policies and procedures that the Funds use to determine
how to vote proxies relating to portfolio securities is available (1)
without charge, upon request, by calling toll-free 1-800-441-7762; (2) at
www.blackrock.com; and (3) on the Securities and Exchange Commission's Web
site at http://www.sec.gov. Information about how the Funds voted proxies
relating to securities held in the Funds' portfolios during the most recent
12-month period ended June 30 is available (1) at www.blackrock.com; and
(2) on the Securities and Exchange Commission's Web site at http://www.sec.gov.
BlackRock Muni Intermediate Duration Fund, Inc.
BlackRock Muni New York Intermediate Duration Fund, Inc.
P.O. Box 9011
Princeton, NJ 08543-9011
(GO PAPERLESS...logo)
It's Fast, Convenient, & Timely!
BlackRock Muni Intermediate Duration Fund, Inc.
BlackRock Muni New York Intermediate Duration Fund, Inc.
Quality Profiles as of November 30, 2006
BlackRock Muni Intermediate Percent of
Duration Fund, Inc. Total
By S&P/Moody's Rating Investments
AAA/Aaa 45.4%
AA/Aa 4.4
A/A 12.5
BBB/Baa 19.3
BB/Ba 1.3
B/B 1.2
CCC/Caa 1.7
NR (Not Rated) 13.4
Other* 0.8
* Includes portfolio holdings in variable rate demand notes.
BlackRock Muni New York Percent of
Intermediate Duration Fund, Inc. Total
By S&P/Moody's Rating Investments
AAA/Aaa 30.6%
AA/Aa 20.4
A/A 11.9
BBB/Baa 20.0
BB/Ba 7.3
CCC/Caa 2.7
NR (Not Rated) 6.2
Other* 0.9
* Includes portfolio holdings in anticipation notes and
short-term investments.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
A Letter to Shareholders
Dear Shareholder
As 2006 nears a conclusion, we are able to say it has been an interesting year
for investors. After a volatile start and far-reaching mid-year correction,
the financial markets regained some positive momentum through late summer and
into fall. For the six-month and 12-month periods ended November 30, 2006, the
major market indexes posted positive returns:
Total Returns as of November 30, 2006 6-month 12-month
U.S. equities (Standard & Poor's 500 Index) +11.33% +14.23%
Small cap U.S. equities (Russell 2000 Index) + 9.72 +17.43
International equities (MSCI Europe, Australasia, Far East Index) +11.19 +28.20
Fixed income (Lehman Brothers Aggregate Bond Index) + 5.93 + 5.94
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 4.53 + 6.12
High yield bonds (Credit Suisse High Yield Index) + 6.28 +11.53
After raising the target short-term interest rate 17 times between June 2004
and June 2006, the Federal Reserve Board (the Fed) finally opted to pause on
August 8. This left the federal funds rate at 5.25%, where it remained through
the September, October and December Federal Open Market Committee meetings. In
interrupting its two-year interest rate-hiking campaign, the Fed acknowledged
that economic growth is slowing, led by softness in the housing market.
However, the central bankers continue to take a cautionary position on
inflation, despite a decline in energy prices in the fall. At the time of this
writing, the price of crude oil was roughly $62 per barrel after reaching
nearly $78 per barrel in the summer.
Notwithstanding the mid-year correction, equity markets generally found
support in solid corporate earnings reports in the first three quarters of the
year. Overall corporate health, including strong company balance sheets,
helped to sustain robust dividend-distribution, share-buyback and merger-and-
acquisition activity. Many international equity markets fared equally well or
better, thanks in part to higher economic growth rates and low inflation.
In the U.S. bond market, prices declined (and yields correspondingly rose) for
much of the year as investors focused on decent economic activity and
inflation concerns. Bond prices began to improve (yields fell) in the summer
as the economy showed signs of weakening and the Fed paused. Notably, the
Treasury curve inverted periodically, a phenomenon typically associated with
periods of economic weakness. At the end of November, the one-month Treasury
bill offered the highest yield on the curve at 5.22%, while the 30-year
Treasury bond had a yield of 4.56%.
Amid the uncertainty inherent in the financial markets, we encourage you to
review your goals periodically with your financial professional and to make
portfolio changes, as needed. For additional insight and timely "food for
thought" for investors, we also invite you to visit Shareholder magazine at
www.blackrock.com/shareholdermagazine. We are pleased to make our investor-
friendly magazine available to you online. We thank you for trusting
BlackRock with your investment assets, and we look forward to continuing to
serve your investment needs.
Sincerely,
(Robert C. Doll, Jr.)
Robert C. Doll, Jr.
President and Director
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
A Discussion With Your Funds' Portfolio Managers
The Funds outperformed the average return of the Lipper Intermediate Debt
Funds category for the period, benefiting primarily from favorable security
selection and exposure to lower-quality, higher-yielding municipal credits.
Describe the recent market environment relative to municipal bonds.
Long-term fixed income bond yields generally moved lower over the six-month
period as prices, which move opposite of yields, increased. Early in the
reporting period, bond yields had remained near their recent highs as
investors focused on solid U.S. economic growth and rising commodity prices
(especially for oil and gold), which engendered fears of inflation. Bond
prices began to improve (and yields fall) in late June as economic activity
softened. The price improvement accelerated in response to the Federal Reserve
Board's (the Fed) decision on August 8 to refrain from raising its target
interest rate. This came after 17 consecutive interest rate increases since
June 2004. Most recently, bond prices found additional support from moderating
oil prices, especially gasoline prices, and continued soft business activity.
At the end of November, the 30-year U.S. Treasury bond yield stood at 4.56%, a
decline of 65 basis points (.65%) over the past six months. The recent Fed
pause has allowed prices in the intermediate sector of the bond market to
improve as well, with the yield on the 10-year U.S. Treasury note falling 66
basis points to 4.46% during the period.
The tax-exempt market generally mimicked its taxable counterpart throughout
most of the past six months. As measured by Municipal Market Data, yields on
AAA-rated issues maturing in 30 years declined 62 basis points to 3.91% - the
lowest yield since this series' reporting history began in the late 1980s.
Strong demand for longer-maturity issues by non-traditional investors and only
modest retail investor demand for intermediate-maturity bonds led to a
continued flattening of the municipal yield curve. In recent months,
intermediate tax-exempt bond yields declined less than the yields of longer-
maturity bonds. During the six-month reporting period, yields on AAA-rated
municipal bonds maturing in 10 years fell 46 basis points to 3.56%, their
lowest level since October 2004.
Investor demand for municipal product, particularly from larger institutional
accounts, has remained strong despite the recent decline in yields. This is
evidenced in continued cash flows to long-term tax-exempt mutual funds. As
reported by the Investment Company Institute, long-term municipal bond funds
saw net new cash inflows of over $2.2 billion during October 2006, a material
increase from flows seen in the summer (for example, $344 million in July and
$283 million in June). During the first 10 months of the year, long-term tax-
exempt bond funds had net new cash flows of over $11.8 billion, a 70% increase
versus the same period a year earlier. Recent weekly fund flows, as reported
by AMG Data, averaged $401 million in November 2006, above the year-to-date
weekly average of $315 million.
Further supporting tax-exempt bond prices has been a recent decline in new
issuance. Year-to-date through November 2006, over $325 billion in new long-
term municipal bonds was underwritten, a decline of more than 13% compared
to the same period last year. More recently, the falling bond yields have
boosted the pace of bond underwritings. Over the past six months, more than
$191 billion in long-term municipal bonds was issued, a decline of 7.4%
compared to the same period a year earlier. Issuance levels in 2007 will
likely depend on whether low yields continue to sustain refunding activity.
Looking ahead, the market's favorable technical position should continue to
support municipal bond prices. The 30-day visible supply of proposed tax-
exempt underwritings has quickly risen as issuers have rushed to take
advantage of historically low bond yields before year-end. Still, we believe
this is unlikely to pressure municipal bond prices given that investor demand
has been very strong. Also, much of the forward supply is concentrated in
California and New York and, therefore, is unlikely to result in significant
price pressures for the majority of national, general market issuers. Tax-
exempt bond yield ratios remain attractive relative to taxable bonds, and
investors continue to be attracted to the municipal market's relatively steep
yield curve. Taken together, these factors suggest that the municipal market
should continue to perform well in the months ahead.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
BlackRock Muni Intermediate Duration Fund, Inc.
How did the Fund perform during the period?
For the six-month period ended November 30, 2006, the Common Stock of
BlackRock Muni Intermediate Duration Fund, Inc. had net annualized yields of
4.82% and 4.92%, based on a period-end per share net asset value of $15.57 and
a per share market price of $15.25, respectively, and $.376 per share income
dividends. Over the same period, the total investment return on the Fund's
Common Stock was +6.00%, based on a change in per share net asset value from
$15.07 to $15.57, and assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, exceeded the +5.62% average
return of the Lipper Intermediate Municipal Debt Funds category for the six-
month period. (Funds in this Lipper category invest in municipal debt issues
with dollar-weighted average maturities of five years - 10 years.)
Fund performance continued to be driven by our exposure to lower-rated, higher-
yielding credits. As credit spreads contracted marginally throughout the
period, lower-rated instruments outperformed the broader market and provided
incremental yield for the Fund. It should be noted that the spread contraction
trend that we witnessed over the past three years did slow considerably during
this six-month period and, as such, the benefits of our spread product
exposure decreased. Still, positive security selection contributed to the
Fund's outperformance.
For a description of the Fund's total investment return based on a change in
the per share market value of the Fund's Common Stock (as measured by the
trading price of the Fund's shares on the New York Stock Exchange), and
assuming reinvestment of dividends, please refer to the Financial Highlights
section of this report. As a closed-end fund, the Fund's shares may trade in
the secondary market at a premium or discount to the Fund's net asset value.
As a result, total investment returns based on changes in the market value of
the Fund's Common Stock may vary significantly from total investment returns
based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
We did not make any specific structural changes to the portfolio over the past
six months. Limited new issuance in the municipal market and a general lack of
attractively structured bonds meant there was little need or incentive to make
strategic changes to the Fund's asset mix. Instead, we remained focused on
generating a generous income accrual for our shareholders and muting price
volatility in the portfolio. With tax-exempt yields currently at their lowest
levels in a decade, we believe it is prudent to protect the net asset
valuation of the portfolio.
For the six months ended November 30, 2006, the Fund's Auction Market Preferred
Stock had average yields of 3.75% for Series M7, 3.79% for Series T7, 3.70%
for Series W7, 3.74% for Series TH7, 3.65% for Series F7 and 3.90% for Series
TH28. After 17 consecutive interest rate hikes over a two-year period, the
Fed opted to keep the target short-term interest rate on hold at 5.25% in
August, September, October and December. With that, the Fund's borrowing
costs started to stabilize and even move slightly lower. The municipal yield
curve remained positively sloped and continued to generate an income benefit
to the Common Stock shareholder from the leveraging of Preferred Stock.
However, should the spread between short-term and long-term interest rates
narrow, the benefits of leverage will decline and, as a result, reduce the
yield on the Fund's Common Stock. (For a more complete explanation of the
benefits and risks of leveraging, see page 8 of this report to shareholders.)
How would you characterize the Fund's position at the close of the period?
We ended the period with a neutral outlook on interest rate risk. The Fed has
been on hold since August and the markets are pricing in the possibility of a
Fed interest rate cut in the first half of 2007.
Given the current low interest rate environment, combined with tight credit
spreads, we expect that the Fund's performance going forward will be driven
primarily by security selection. The portfolio currently has a nominal cash
position of 2% of net assets, which allows us some flexibility to participate
in market opportunities should yields rise from their current lows. In the
meantime, we continue to emphasize competitive yield and preservation of net
asset value in our management of the portfolio.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
A Discussion With Your Funds' Portfolio Managers (concluded)
BlackRock Muni New York Intermediate Duration Fund, Inc.
Describe conditions in the State of New York.
New York maintained credit ratings of Aa3, AA and AA- from Moody's, Standard &
Poor's and Fitch, respectively, all with a stable outlook.
The state's $112.5 billion 2006-2007 budget kept most of Governor George
Pataki's proposals intact, including about $850 million in tax cuts and the
allocation of almost $2 billion from the 2006 fiscal year surplus toward out-
year gaps. In compliance with a court order on school funding, the budget also
includes $700 million in school operating aid. It is unclear whether this
amount, as well as additional capital grants and bonding authority to New York
City, will be sufficient in meeting the court mandate. On October 30, state
officials released the mid-year update to the 2006-2007 financial plan, which
reflected changes made by the legislature and governor since the budget was
enacted. The update continues to reflect increased property tax rebates, a cap
on gasoline taxes, and deferral of certain Medicaid cost-containment rules
that will be paid for with stabilization reserve monies. Notably, however, the
fiscal year 2007-2008 and 2008-2009 out-year gaps have been reduced to $2.4
billion and $4.5 billion, respectively, from $3.2 billion and $5.4 billion,
respectively. These reductions are due mainly to higher forecasted personal
income tax receipts, particularly from securities industry profits, and lower
Medicaid costs than originally projected.
The state's September 2006 employment numbers show a 0.8% increase from
September 2005 levels. New York continues to rank fifth-highest among all
states in per capita income.
How did the Fund perform during the period?
For the six-month period ended November 30, 2006, the Common Stock of
BlackRock Muni New York Intermediate Duration Fund, Inc. had net annualized
yields of 4.22% and 4.67%, based on a period-end per share net asset value of
$15.28 and a per share market price of $13.80, respectively, and $.323 per
share income dividends. Over the same period, the total investment return on
the Fund's Common Stock was +6.76%, based on a change in per share net asset
value from $14.66 to $15.28, and assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, exceeded the +5.62% average
return of the Lipper Intermediate Municipal Debt Funds category for the six-
month period. (Funds in this Lipper category invest in municipal debt issues
with dollar-weighted average maturities of five years - 10 years.)
The Fund ended the period at the top of its Lipper group, largely a result of
our duration and yield curve strategies. We had started lengthening the Fund's
duration last December in anticipation that the Fed would pause in its
interest rate-hiking campaign. Although the pause did not come as quickly as
we expected, the Fund was very well positioned in August when the Fed
interrupted its tightening campaign. Essentially, the 10-year part of the
curve performed in line with the 30-year sector over this six-month period.
Our slightly long duration relative to our peers allowed us to capture all of
the positive price performance of the long end while remaining within our
intermediate duration parameters. We also invested in lower-quality bonds when
opportunities presented themselves, and this benefited performance as the
lowest tiers of the credit spectrum outperformed.
For a description of the Fund's total investment return based on a change in
the per share market value of the Fund's Common Stock (as measured by the
trading price of the Fund's shares on the New York Stock Exchange), and
assuming reinvestment of dividends, please refer to the Financial Highlights
section of this report. As a closed-end fund, the Fund's shares may trade in
the secondary market at a premium or discount to the Fund's net asset value.
As a result, total investment returns based on changes in the market value of
the Fund's Common Stock may vary significantly from total investment returns
based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
We did not make significant changes to the portfolio over the past six months,
as we believe the Fund is well positioned in terms of coupon structure and
diversity. Having said that, we did look to maintain the portfolio's favorable
structure by selling some bonds as their call protection declined to within or
under three years. As bonds approach their call dates, the amortization of the
premium price accelerates - that is, the bonds' price declines at a faster
rate and, therefore, they are likely to underperform in the market. In
addition, as the yield curve flattening phenomenon started to moderate, we
shortened the portfolio's duration somewhat by reducing exposure to longer-
dated bonds.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Other portfolio activity was focused on our efforts to add yield to the
portfolio. For example, with the proceeds from the short-call and longer-dated
bonds we sold, we looked to buy some out-of-favor coupons, primarily discount
bonds, for their yield-enhancement potential. We also made purchases of
insured Yankees and Mets (Queens Stadium) bonds, which contributed to the
diversification of the portfolio. We believe that, over time, these bonds
should be highly sought after as a retail holding, making them an attractive
trading vehicle. Overall, there was limited opportunity to participate in the
new-issue market, as New York supply was down 39% versus the same six months a
year ago.
For the six months ended November 30, 2006, the average yield for the Fund's
Auction Market Preferred Stock was 3.28%. After 17 consecutive interest rate
hikes over a two-year period, the Fed opted to keep the target short-term
interest rate on hold at 5.25% in August, September, October and December
2006. With that, the Fund's borrowing costs started to stabilize and even move
slightly lower. The municipal yield curve remained positively sloped and
continued to generate an income benefit to the Common Stock shareholder from
the leveraging of Preferred Stock. However, should the spread between short-
term and long-term interest rates narrow, the benefits of leverage will
decline and, as a result, reduce the yield on the Fund's Common Stock. (For a
more complete explanation of the benefits and risks of leveraging, see page 8
of this report to shareholders.)
How would you characterize the Fund's position at the close of the period?
Recently, amid the decline in yields and conjecture about a future Fed ease,
it appears that the market's valuation is overextended. With the 30-year
Treasury yield at 4.56%, 69 basis points below the federal funds rate, it
seems unlikely that these interest rates can be sustained. This prompted us to
move to a slightly more defensive posture at period-end, consistent with the
recommendation of our internal Investment Committee.
Although new municipal issuance in New York was down 50% over the past three
months (versus the same period a year ago), supply has increased markedly
recently as issuers have rushed to the market before year-end to take
advantage of the prevailing low interest rates. Still, we will be selective in
making new purchases, as we are pleased with the current composition of the
portfolio. Given the very low yields in the market, and the fact that the
portfolio is well diversified and balanced among bonds with higher book yields
and attractive total return potential, we will make changes only as needed to
diversify the Fund and/or enhance its current structure.
Walter C. O'Connor, CFA
Vice President and Portfolio Manager
BlackRock Muni Intermediate Duration Fund, Inc.
Timothy T. Browse, CFA
Vice President and Portfolio Manager
BlackRock Muni New York Intermediate Duration Fund, Inc.
December 15, 2006
Effective October 2, 2006, Walter C. O'Connor assumed responsibility for the
day-to-day management of BlackRock Muni Intermediate Duration Fund's
portfolio. Mr. O'Connor is a Managing Director of BlackRock, Inc. Previously,
he was a Managing Director in the Municipal Tax-Exempt Fund Management group
of Merrill Lynch Investment Managers (MLIM) from 2003 to 2006, a Director
thereof from 2000 to 2003 and Vice President from 1993 to 2000.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
The Benefits and Risks of Leveraging
The Funds utilize leveraging to seek to enhance the yield and net asset value
of their Common Stock. However, these objectives cannot be achieved in all
interest rate environments. To leverage, each Fund issues Preferred Stock,
which pays dividends at prevailing short-term interest rates, and invests the
proceeds in long-term municipal bonds. The interest earned on these
investments, net of dividends to Preferred Stock, is paid to Common Stock
shareholders in the form of dividends, and the value of these portfolio
holdings is reflected in the per share net asset value of each Fund's Common
Stock. However, in order to benefit Common Stock shareholders, the yield curve
must be positively sloped; that is, short-term interest rates must be lower
than long-term interest rates. At the same time, a period of generally
declining interest rates will benefit Common Stock shareholders. If either of
these conditions change, then the risks of leveraging will begin to outweigh
the benefits.
To illustrate these concepts, assume a fund's Common Stock capitalization of
$100 million and the issuance of Preferred Stock for an additional $50 million,
creating a total value of $150 million available for investment in long-term
municipal bonds. If prevailing short-term interest rates are approximately 3%
and long-term interest rates are approximately 6%, the yield curve has a
strongly positive slope. The fund pays dividends on the $50 million of
Preferred Stock based on the lower short-term interest rates. At the same time,
the fund's total portfolio of $150 million earns the income based on long-term
interest rates.
In this case, the dividends paid to Preferred Stock shareholders are
significantly lower than the income earned on the fund's long-term
investments, and therefore the Common Stock shareholders are the beneficiaries
of the incremental yield. However, if short-term interest rates rise,
narrowing the differential between short-term and long-term interest rates,
the incremental yield pickup on the Common Stock will be reduced or eliminated
completely. At the same time, the market value of the fund's Common Stock
(that is, its price as listed on the New York Stock Exchange) may, as a
result, decline. Furthermore, if long-term interest rates rise, the Common
Stock's net asset value will reflect the full decline in the price of the
portfolio's investments, since the value of the fund's Preferred Stock does
not fluctuate. In addition to the decline in net asset value, the market value
of the fund's Common Stock may also decline.
As of November 30, 2006, BlackRock Muni Intermediate Duration Fund, Inc. and
BlackRock Muni New York Intermediate Duration Fund, Inc. had leverage amounts,
due to Auction Market Preferred Stock, of 35.07% and 32.54% of total net
assets, respectively, before the deduction of Preferred Stock.
As a part of its investment strategy, the Funds may invest in certain
securities whose potential income return is inversely related to changes in a
floating interest rate ("inverse floaters"). In general, income on inverse
floaters will decrease when short-term interest rates increase and increase
when short-term interest rates decrease. Investments in inverse floaters may
be characterized as derivative securities and may subject the Funds to the
risks of reduced or eliminated interest payments and losses of invested
principal. In addition, inverse floaters have the effect of providing
investment leverage and, as a result, the market value of such securities will
generally be more volatile than that of fixed-rate, tax-exempt securities. To
the extent the Funds invest in inverse floaters, the market value of each
Fund's portfolio and the net asset value of each Fund's shares may also be
more volatile than if the Funds did not invest in such securities.
Swap Agreements
The Funds may invest in swap agreements, which are over-the-counter contracts
in which one party agrees to make periodic payments based on the change in
market value of a specified bond, basket of bonds, or index in return for
periodic payments based on a fixed or variable interest rate or the change in
market value of a different bond, basket of bonds or index. Swap agreements
may be used to obtain exposure to a bond or market without owning or taking
physical custody of securities. Swap agreements involve the risk that the
party with whom each Fund has entered into the swap will default on its
obligation to pay the Funds and the risk that the Funds will not be able to
meet their obligations to pay the other party to the agreement.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Schedule of Investments As of November 30, 2006 (In Thousands)
BlackRock Muni Intermediate Duration Fund, Inc.
Face
Amount Municipal Bonds Value
Alabama--3.3%
Jefferson County, Alabama, Limited Obligation
School Warrants, Series A:
$ 5,500 5.50% due 1/01/2021 $ 6,054
6,500 5.25% due 1/01/2023 7,013
6,600 Tuscaloosa, Alabama, Special Care Facilities Financing
Authority, Residential Care Facility Revenue Bonds
(Capstone Village, Inc. Project), Series A, 5.625%
due 8/01/2025 6,688
Arizona--2.9%
4,360 Coconino County, Arizona, Pollution Control
Corporation Revenue Bonds (Arizona Public Service
Co.-Navajo Project), VRDN, AMT, Series A, 3.63%
due 10/01/2029 (i) 4,360
2,820 Maricopa County, Arizona, IDA, Education Revenue
Bonds (Arizona Charter Schools Project 1), Series A,
6.625% due 7/01/2020 2,886
3,000 Navajo County, Arizona, IDA, IDR (Stone Container
Corporation Project), AMT, 7.20% due 6/01/2027 3,090
Pima County, Arizona, IDA, Education Revenue Bonds
(Arizona Charter Schools Project):
1,000 Series C, 6.70% due 7/01/2021 1,069
1,750 Series K/L, 6.375% due 7/01/2031 1,870
3,630 Vistancia Community Facilities District, Arizona, GO,
5% due 7/15/2014 3,727
Arkansas--0.7%
3,755 Conway, Arkansas, Public Facilities Board, Capital
Improvement Revenue Refunding Bonds (Hendrix
College Projects), Series B, 5% due 10/01/2026 3,915
California--24.9%
5,000 California State Department of Water Resources,
Power Supply Revenue Bonds, Series A, 5.375%
due 5/01/2012 (h) 5,516
California State, GO:
1,910 5.50% due 4/01/2014 (h) 2,159
15,590 5.50% due 4/01/2028 17,546
5,000 California State, GO, Refunding, 5.25%
due 2/01/2027 (g) 5,375
10,000 California State Public Works Board, Lease Revenue
Bonds (Department of Corrections), Series C, 5.50%
due 6/01/2020 11,102
2,500 California Statewide Communities Development
Authority, Health Facility Revenue Bonds (Memorial
Health Services), Series A, 6% due 10/01/2023 2,797
2,400 Elk Grove, California, Poppy Ridge Community
Facilities Number 3 Special Tax, Series 1, 6%
due 9/01/2008 (h) 2,512
Los Angeles, California, Unified School District, GO:
10,485 (Election of 1997), Series F, 5% due 7/01/2025 (d) 11,180
35,265 Series A, 5% due 1/01/2028 (g) 37,498
Face
Amount Municipal Bonds Value
California (concluded)
$ 5,400 Ontario-Monclair, California, School District, GO
(Election of 2002), Series A, 5% due 8/01/2027 (d) $ 5,694
10,135 Peralta, California, Community College District, GO
(Election of 2000), Series D, 5% due 8/01/2030 (f) 10,836
1,515 Rowland, California, Unified School District, GO
(Election of 2000), Series B, 5.25% due 8/01/2027 (f) 1,636
Sacramento, California, Special Tax (North Natomas
Community Facilities), Series 4-C:
585 5.60% due 9/01/2020 625
1,720 5.75% due 9/01/2022 1,847
500 5.90% due 9/01/2023 540
3,000 6% due 9/01/2028 3,231
2,295 San Francisco, California, City and County, GO
(Branch Library Facilities Improvements), Series G,
5% due 6/15/2023 (g) 2,470
3,000 San Jose, California, Airport Revenue Bonds, Series A,
5.25% due 3/01/2017 (d) 3,196
3,100 San Jose, California, GO (Libraries, Parks and Public
Safety Projects), 5% due 9/01/2030 (g) 3,295
9,030 Sequoia, California, Unified High School District, GO,
Refunding, Series B, 5.50% due 7/01/2035 (f) 10,253
4,875 Tamalpais, California, Union High School District, GO
(Election of 2001), 5% due 8/01/2028 (f) 5,181
2,610 Tustin, California, Unified School District, Senior Lien
Special Tax Bonds (Community Facilities District
Number 97-1), Series A, 5% due 9/01/2032 (f) 2,740
Colorado--2.5%
2,000 Denver, Colorado, City and County Airport Revenue
Refunding Bonds, Series E, 5.25% due 11/15/2023 (g) 2,047
800 Elk Valley, Colorado, Public Improvement Revenue
Bonds (Public Improvement Fee), Series A, 7.10%
due 9/01/2014 863
2,250 Montrose, Colorado, Memorial Hospital, Revenue
Bonds, 6.375% due 12/01/2023 2,554
7,500 Plaza Metropolitan District Number 1, Colorado, Tax
Allocation Revenue Bonds (Public Improvement Fees),
7.50% due 12/01/2015 8,345
1,000 Southlands, Colorado, Medical District, GO (Metropolitan
District Number 1), 6.75% due 12/01/2016 1,111
Connecticut--1.9%
1,160 Connecticut State Development Authority, Airport
Facility Revenue Bonds (Learjet Inc. Project), AMT,
7.95% due 4/01/2026 1,404
8,000 Connecticut State Development Authority, PCR, Refunding
(Connecticut Light and Power Company), Series A,
5.85% due 9/01/2028 8,434
1,250 South Central Connecticut Regional Water Authority,
Water System Revenue Refunding Bonds, Fifteenth,
Series A, 5.125% due 8/01/2029 (d) 1,304
Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedules of
Investments, we have abbreviated the names of many of the securities
according to the list at right.
AMT Alternative Minimum Tax (subject to)
EDA Economic Development Authority
GO General Obligation Bonds
HFA Housing Finance Authority
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PILOT Payment in Lieu of Taxes
PCR Pollution Control Revenue Bonds
S/F Single-Family
TAN Tax Anticipation Notes
VRDN Variable Rate Demand Notes
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Schedule of Investments (continued)
BlackRock Muni Intermediate Duration Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Florida--3.3%
$ 2,935 Harbor Bay, Florida, Community Development District,
Capital Improvement Special Assessment Bonds,
6.75% due 5/01/2034 $ 3,240
1,340 Heritage Isle at Viera Community Development
District, Florida, Special Assessment Bonds,
Series B, 5% due 11/01/2009 1,340
Midtown Miami, Florida, Community Development
District, Special Assessment Revenue Bonds:
3,500 Series A, 6% due 5/01/2024 3,796
2,000 Series B, 6.50% due 5/01/2037 2,223
3,670 Orange County, Florida, Health Facilities Authority,
Health Care Revenue Refunding Bonds (Orlando Lutheran
Towers), 5% due 7/01/2013 3,684
930 Orlando, Florida, Urban Community Development District,
Capital Improvement Special Assessment Bonds, 6%
due 5/01/2020 1,016
1,085 Portofino Shores, Florida, Community Development
District, Special Assessment Bonds, Series A, 6.40%
due 5/01/2034 1,167
2,390 South Lake County, Florida, Hospital District Revenue
Bonds (South Lake Hospital, Inc.), 6.625%
due 10/01/2023 2,727
430 Sterling Hill, Florida, Community Development District,
Capital Improvement Revenue Refunding Bonds,
Series B, 5.50% due 11/01/2010 431
Georgia--3.1%
1,500 Atlanta, Georgia, Tax Allocation Bonds (Atlantic
Station Project), 7.90% due 12/01/2024 1,674
Brunswick and Glynn County, Georgia, Development
Authority, First Mortgage Revenue Bonds (Coastal
Community Retirement Corporation Project), Series A:
5,395 7.125% due 1/01/2025 5,363
2,800 7.25% due 1/01/2035 2,796
4,500 Fulton County, Georgia, Residential Care Facilities,
Revenue Refunding Bonds (Canterbury Court Project),
Series A, 5.80% due 2/15/2018 4,582
Savannah, Georgia, EDA, Revenue Bonds (Marshes
of Skidaway), First Mortgage, Series A:
1,245 6.25% due 1/01/2012 1,281
2,245 6.85% due 1/01/2019 2,417
Idaho--0.1%
415 Idaho Housing and Finance Association, S/F
Mortgage Revenue Bonds, AMT, Series F-2, 5.85%
due 7/01/2015 (e)(k) 422
Illinois--3.4%
2,510 Chicago, Illinois, O'Hare International Airport
Revenue Bonds, Third Lien, AMT, Series B-2, 6%
due 1/01/2029 (b) 2,847
6,000 Hodgkins, Illinois, Environmental Improvement Revenue
Bonds (Metro Biosolids Management LLC Project),
AMT, 5.90% due 11/01/2017 6,257
6,930 Illinois, Development Finance Authority Revenue Bonds
(Community Rehabilitation Providers Facilities),
Series A, 6.625% due 7/01/2032 7,628
1,800 Illinois State Finance Authority Revenue Bonds
(Landing At Plymouth Place Project), Series A, 6%
due 5/15/2025 1,918
1,580 Village of Wheeling, Illinois, Revenue Bonds (North
Milwaukee/Lake-Cook Tax Increment Financing (TIF)
Redevelopment Project), 6% due 1/01/2025 1,620
Face
Amount Municipal Bonds Value
Indiana--0.8%
$ 4,300 Indiana Transportation Finance Authority, Highway
Revenue Bonds, Series A, 5% due 6/01/2028 (f) $ 4,564
Louisiana--2.2%
6,965 Louisiana Public Facilities Authority Revenue Bonds
(University of New Orleans Research and Technology
Foundation, Inc.--Student Housing Project), 5.25%
due 3/01/2026 (g) 7,686
5,000 Port New Orleans, Louisiana, IDR, Refunding
(Continental Grain Company Project), 6.50% due
1/01/2017 5,104
Maine--0.3%
1,965 Portland, Maine, Housing Development Corporation,
Senior Living Revenue Bonds (Avesta Housing
Development Corporation Project), Series A, 6%
due 2/01/2034 2,093
Maryland--0.1%
500 Maryland State Industrial Development Financing
Authority, Economic Development Revenue Bonds
(Our Lady of Good Counsel School), Series A, 6%
due 5/01/2035 541
Massachusetts--4.9%
4,560 Massachusetts Bay Transportation Authority, Sales Tax
Revenue Refunding Bonds, Senior Series A, 5%
due 7/01/2012 (h) 4,895
7,695 Massachusetts Bay Transportation Authority, Special
Assessment Revenue Refunding Bonds, Series A, 5%
due 7/01/2015 (h) 8,484
Massachusetts State Development Finance Agency,
Resource Recovery Revenue Bonds (Ogden Haverhill
Associates), AMT, Series B:
1,210 5.35% due 12/01/2015 1,245
2,000 5.50% due 12/01/2019 2,080
3,000 Massachusetts State Industrial Finance Agency,
Resource Recovery Revenue Refunding Bonds
(Ogden Haverhill Project), AMT, Series A, 5.30%
due 12/01/2009 3,102
8,325 Massachusetts State School Building Authority,
Dedicated Sales Tax Revenue Bonds, Series A, 5%
due 8/15/2030 (f) 8,951
Michigan--1.3%
2,325 Macomb County, Michigan, Hospital Finance Authority,
Hospital Revenue Bonds (Mount Clemens General
Hospital), Series B, 5.875% due 11/15/2034 2,473
4,795 Michigan State Hospital Finance Authority, Revenue
Refunding Bonds (Oakwood Obligated Group), Series A,
6% due 4/01/2022 5,318
Minnesota--1.0%
Minneapolis and Saint Paul, Minnesota, Housing and
Redevelopment Authority, Health Care System
Revenue Bonds (Group Health Plan, Inc. Project):
1,000 6% due 12/01/2019 1,105
2,545 6% due 12/01/2021 2,812
2,000 Minnesota State Municipal Power Agency, Electric
Revenue Bonds, Series A, 5.25% due 10/01/2024 2,154
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Schedule of Investments (continued)
BlackRock Muni Intermediate Duration Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Mississippi--1.3%
Mississippi Business Finance Corporation,
Mississippi, PCR, Refunding (System Energy
Resources, Inc. Project):
$ 5,000 5.875% due 4/01/2022 $ 5,008
2,910 5.90% due 5/01/2022 2,915
Nevada--0.4%
2,250 Clark County, Nevada, Improvement District Number 142,
Special Assessment Bonds, 6.375% due 8/01/2023 2,322
New Jersey--16.2%
Garden State Preservation Trust of New Jersey, Open
Space and Farmland Preservation Revenue Bonds,
Series A (f):
3,635 5.80% due 11/01/2021 4,213
5,050 5.80% due 11/01/2023 5,855
New Jersey EDA, Cigarette Tax Revenue Bonds:
10,950 5.625% due 6/15/2018 11,409
9,810 5.75% due 6/15/2029 10,720
17,900 New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A, 5.25% due 7/01/2033 (g) 19,473
5,540 New Jersey EDA, Special Facility Revenue Bonds
(Continental Airlines Inc. Project), AMT, 6.625%
due 9/15/2012 5,946
New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds:
5,000 Series C, 5.25% due 6/15/2015 (g)(h) 5,598
5,785 Series D, 5% due 6/15/2015 (a)(h) 6,371
8,880 Series D, 5% due 6/15/2015 (f)(h) 9,780
4,215 Series D, 5% due 6/15/2018 (a) 4,583
11,120 Series D, 5% due 6/15/2019 (f) 12,056
New Mexico--3.8%
Farmington, New Mexico, PCR, Refunding:
3,000 (Public Service Company of New Mexico--San
Juan Project), Series D, 6.375% due 4/01/2022 3,086
9,000 (Tucson Electric Power Company--San Juan
Project), Series A, 6.95% due 10/01/2020 9,331
9,520 New Mexico Finance Authority, Senior Lien State
Transportation Revenue Bonds, Series A, 5.125%
due 6/15/2018 (g) 10,399
New York--25.7%
1,145 Dutchess County, New York, IDA, Civic Facility
Revenue Bonds (Saint Francis Hospital), Series B,
7.25% due 3/01/2019 1,263
10,500 Metropolitan Transportation Authority, New York,
Revenue Refunding Bonds, Series A, 5.75%
due 11/15/2032 11,565
875 New York City, New York, City IDA, Civic Facility
Revenue Bonds (Special Needs Facilities Pooled
Program), Series C-1, 5.50% due 7/01/2007 880
3,500 New York City, New York, City IDA, Special Facility
Revenue Bonds (Continental Airlines Inc. Project),
AMT, 8.375% due 11/01/2016 3,896
1,110 New York City, New York, City Transitional Finance
Authority, Future Tax Secured Revenue Bonds,
Series C, 5.50% due 5/01/2009 (h) 1,172
5,000 New York City, New York, GO, Refunding, Series B,
5.75% due 8/01/2015 5,509
2,055 New York City, New York, IDA, Civic Facility Revenue
Bonds (Special Needs Facilities Pooled Program),
Series C-1, 6.80% due 7/01/2019 2,206
Face
Amount Municipal Bonds Value
New York (concluded)
$ 9,070 New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds, Series A, 5%
due 10/15/2020 (g) $ 9,817
5,580 New York State Dormitory Authority, Lease Revenue
Refunding Bonds (Court Facilities), Series A,
5.25% due 5/15/2012 5,992
New York State Dormitory Authority, Non-State
Supported Debt, Revenue Refunding Bonds (Mount
Sinai-NYU Medical Center Health System), Series A:
8,285 6.625% due 7/01/2010 (h) 9,173
2,385 6.625% due 7/01/2018 2,592
1,330 6.625% due 7/01/2019 1,444
New York State Dormitory Authority Revenue Bonds:
1,000 (North Shore L I Jewish Group), 5% due 5/01/2012 1,056
9,540 (School Districts Financing Program), Series D,
5.25% due 10/01/2023 (g) 10,315
7,775 New York State Dormitory Authority, Revenue Refunding
Bonds (City University System), Consolidated Second
Generation, Series A, 6.125% due 7/01/2013 (a) 8,501
7,380 New York State Environmental Facilities Corporation,
State Personal Income Tax Revenue Bonds, Series A,
5.25% due 12/15/2018 (d) 8,180
60 New York State Thruway Authority, Local Highway and
Bridge Service Contract, Revenue Refunding Bonds,
5.50% due 4/01/2017 66
New York State Urban Development Corporation,
Correctional and Youth Facilities Services,
Revenue Refunding Bonds, Series A:
825 5.50% due 1/01/2011 (h) 887
10,825 5.50% due 1/01/2017 11,574
10,000 New York State Urban Development Corporation,
Personal Income Tax Revenue Bonds (State
Facilities), Series A-1, 5.25% due 3/15/2034 (d) 10,854
5,000 Port Authority of New York and New Jersey, Senior
Consolidated Revenue Bonds, AMT, 131st Series, 5%
due 12/15/2017 (c) 5,348
Tobacco Settlement Financing Corporation of New York
Revenue Bonds,:
3,340 Series A-1, 5.50% due 6/01/2016 3,543
6,510 Series A-1, 5.25% due 6/01/2022 (a) 7,030
9,750 Series C-1, 5.50% due 6/01/2020 (d) 10,704
7,000 Series C-1, 5.50% due 6/01/2021 7,680
10,000 Series C-1, 5.50% due 6/01/2022 10,959
North Carolina--1.7%
3,105 Gaston County, North Carolina, Industrial Facilities
and Pollution Control Financing Authority, Revenue
Bonds (National Gypsum Company Project), AMT, 5.75%
due 8/01/2035 3,343
6,000 North Carolina Medical Care Commission, Health Care
Facilities, First Mortgage Revenue Refunding Bonds
(Presbyterian Homes Project), 7% due 10/01/2010 (h) 6,774
Ohio--0.2%
1,280 Port of Greater Cincinnati Development Authority, Ohio,
Special Assessment Revenue Bonds (Cooperative Public
Parking Infrastructure Project), 6.30% due 2/15/2024 1,393
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Schedule of Investments (continued)
BlackRock Muni Intermediate Duration Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Pennsylvania--6.4%
$ 3,500 Montgomery County, Pennsylvania, IDA, Revenue
Bonds (Whitemarsh Continuing Care Project), 6%
due 2/01/2021 $ 3,722
7,710 Pennsylvania Economic Development Financing
Authority, Exempt Facilities Revenue Bonds
(National Gypsum Company), AMT, Series A, 6.25%
due 11/01/2027 8,144
7,490 Philadelphia, Pennsylvania, Gas Works Revenue
Refunding Bonds, 1975 General Ordinance,
17th Series, 5.375% due 7/01/2022 (f) 8,162
9,630 Pittsburgh, Pennsylvania, GO, Refunding, Series B,
5.25% due 9/01/2017 (f) 10,781
Sayre, Pennsylvania, Health Care Facilities Authority,
Revenue Refunding Bonds (Guthrie Healthcare System),
Series A:
1,750 6.25% due 12/01/2015 1,944
3,000 6.25% due 12/01/2016 3,333
1,490 6.25% due 12/01/2018 1,650
South Carolina--0.8%
4,250 Medical University Hospital Authority, South Carolina,
Mortgage Hospital Facilities, Revenue Refunding
Bonds, Series A, 5.25% due 8/15/2023 (e)(g)(k) 4,611
Tennessee--3.9%
1,800 Johnson City, Tennessee, Health and Educational
Facilities Board, Retirement Facility Revenue Bonds
(Appalachian Christian Village Project), Series A,
6% due 2/15/2019 1,829
5,000 McMinn County, Tennessee, IDB, PCR (Calhoun
Newsprint Co. Project), AMT, 7.625% due 3/01/2016 5,026
Shelby County, Tennessee, Health, Educational and
Housing Facilities Board Revenue Bonds (Germantown
Village), Series A:
3,550 6.75% due 12/01/2018 3,761
1,450 7% due 12/01/2023 1,553
Shelby County, Tennessee, Health, Educational and
Housing Facility Board, Hospital Revenue Refunding
Bonds (Methodist Healthcare) (h):
6,000 6% due 9/01/2012 6,755
3,500 6.25% due 9/01/2012 3,984
Texas--12.3%
Austin, Texas, Convention Center Revenue Bonds
(Convention Enterprises Inc.), First Tier,
Series A (h):
6,445 6.375% due 1/01/2011 6,798
10,260 6.70% due 1/01/2011 10,889
Bell County, Texas, Health Facilities Development
Corporation, Hospital Revenue Bonds (Scott & White
Memorial Hospital), VRDN (g)(i):
2,800 Series 2001-1, 3.57% due 8/15/2031 2,800
395 Series 2001-2, 3.57% due 8/15/2031 395
1,500 Bexar County, Texas, Health Facilities Development
Corporation, Revenue Refunding Bonds (Army
Retirement Residence Project), 6.30% due 7/01/2032 1,639
Brazos River Authority, Texas, PCR, Refunding, AMT,
Series A:
1,500 (TXU Energy Company LLC Project), 6.75%
due 4/01/2038 1,676
5,085 (Texas Utility Company), 7.70% due 4/01/2033 5,958
Face
Amount Municipal Bonds Value
Texas (concluded)
$ 4,000 Dallas-Fort Worth, Texas, International Airport
Facility Improvement Corporation, Revenue Bonds
(Learjet Inc.), AMT, Series A-1, 6.15% due
1/01/2016 $ 4,044
5,000 Dallas-Fort Worth, Texas, International Airport
Facility Improvement Corporation, Revenue
Refunding Bonds, AMT, Series A-2, 9% due 5/01/2029 6,130
2,440 Gulf Coast, Texas, IDA, Solid Waste Disposal Revenue
Bonds (Citgo Petroleum Corporation Project), AMT,
7.50% due 5/01/2025 2,755
3,000 Gulf Coast, Texas, Waste Disposal Authority Revenue
Refunding Bonds (International Paper Company), AMT,
Series A, 6.10% due 8/01/2024 3,250
5,790 Houston, Texas, Airport System Revenue Refunding
Bonds, Sub-Lien, AMT, Series A, 5.50%
due 7/01/2023 (f) 6,083
1,500 Houston, Texas, Health Facilities Development
Corporation, Retirement Facility Revenue Bonds
(Buckingham Senior Living Community), Series A, 7%
due 2/15/2023 1,680
7,420 Lower Colorado River Authority, Texas, PCR (Samsung
Austin Semiconductor), AMT, 6.95% due 4/01/2030 8,200
2,600 Matagorda County, Texas, Navigation District Number 1,
Revenue Refunding Bonds (Reliant Energy, Inc.),
Series C, 8% due 5/01/2029 2,762
2,300 Port Corpus Christi, Texas, Individual Development
Corporation, Environmental Facilities Revenue Bonds
(Citgo Petroleum Corporation Project), AMT, 8.25%
due 11/01/2031 2,375
5,000 Sabine River Authority, Texas, PCR, Refunding (TXU
Electric Company Project/TXU Energy Company LLC),
AMT, Series B, 5.75% due 5/01/2030 5,329
Virginia--4.5%
James City County, Virginia, IDA, Residential Care
Facility Revenue Refunding Bonds, Series A:
3,285 5.75% due 3/01/2017 3,452
1,150 6% due 3/01/2023 1,226
2,250 Loudoun County, Virginia, IDA, IDR, Refunding (Dulles
Airport Marriott Hotel), 7.125% due 9/01/2015 2,286
10,735 Pocahontas Parkway Association, Virginia, Toll
Road Revenue Bonds, Senior Series A, 5.50%
due 8/15/2008 (h) 11,292
7,800 Tobacco Settlement Financing Corporation of Virginia,
Asset-Backed Revenue Bonds, 5.625% due 6/01/2037 8,346
Washington--1.8%
10,000 Snohomish County, Washington, School District
Number 015 (Edmonds), GO, 5% due 12/01/2019 (d) 10,901
Guam--0.8%
4,250 Commonwealth of the Northern Mariana Islands, Guam,
GO, Series A, 6.75% due 10/01/2033 4,794
Puerto Rico--7.6%
1,820 Puerto Rico Commonwealth, Public Improvement, GO,
Refunding, Series B, 5.25% due 7/01/2032 1,986
17,935 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series NN, 5.50% due 7/01/2018 19,602
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Schedule of Investments (concluded)
BlackRock Muni Intermediate Duration Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Puerto Rico (concluded)
$ 5,390 Puerto Rico Industrial, Medical and Environmental
Pollution Control Facilities Financing Authority,
Special Facilities Revenue Bonds (American
Airlines Inc.), Series A, 6.45% due 12/01/2025 $ 5,500
Puerto Rico Public Buildings Authority, Government
Facilities Revenue Refunding Bonds:
5,170 Series D, 5.25% due 7/01/2027 5,493
8,000 Series I, 5.50% due 7/01/2021 8,855
3,535 Puerto Rico Public Finance Corporation, Commonwealth
Appropriation Revenue Bonds, Series E, 5.50%
due 8/01/2029 3,768
U.S. Virgin Islands--1.6%
1,860 Virgin Islands Government Refinery Facilities, Revenue
Refunding Bonds (Hovensa Coker Project), AMT,
6.50% due 7/01/2021 2,108
6,750 Virgin Islands Public Fiance Authority, Refinery
Facilities Revenue Bonds (Hovensa Refinery), AMT,
6.125% due 7/01/2022 7,508
Total Municipal Bonds
(Cost--$818,475)--145.7% 862,915
Face
Amount Municipal Bonds Held in Trust (j) Value
California--3.2%
$17,730 California Pollution Control Financing Authority, PCR,
Refunding (Pacific Gas & Electric), AMT, Series A,
5.35% due 12/01/2016 (g) $ 19,102
New York--2.1%
11,100 New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds, Series A, 5.25%
due 10/15/2027 (a) 12,194
Texas--5.5%
31,240 Harris County, Texas, Toll Road Revenue Refunding
Bonds, Senior Lien, Series A, 5.25%
due 8/15/2035 (f) 32,826
Total Municipal Bonds Held in Trust
(Cost--$63,151)--10.8% 64,122
Total Investments (Cost--$881,626*)--156.5% 927,037
Other Assets Less Liabilities--2.6% 15,718
Liability for Trust Certificates,
Including Interest Expenses Payable--(5.1%) (30,258)
Preferred Stock, at Redemption Value--(54.0%) (320,106)
-----------
Net Assets Applicable to Common Stock--100.0% $ 592,391
===========
* The cost and unrealized appreciation (depreciation) of investments
as of November 30, 2006, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 852,321
===============
Gross unrealized appreciation $ 44,987
Gross unrealized depreciation (306)
---------------
Net unrealized appreciation $ 44,681
===============
(a) AMBAC Insured.
(b) XL Capital Insured.
(c) CIFG Insured.
(d) FGIC Insured.
(e) FHA Insured.
(f) FSA Insured.
(g) MBIA Insured.
(h) Prerefunded.
(i) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates.
(j) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction
in which the Fund acquired the residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1(c)
to Financial Statements for details of Municipal Bonds Held in Trust.
(k) Federal Housing Administration/Veterans' Administration Mortgages
packaged by the Federal National Mortgage Association.
o Forward interest rate swaps outstanding as of November 30, 2006
were as follows:
Notional Unrealized
Amount Depreciation
Pay a fixed rate of 3.804% and receive
a floating rate based on 1-week Bond
Market Association rate
Broker, JPMorgan Chase
Expires January 2017 $ 30,900 $(607)
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Schedule of Investments As of November 30, 2006 (In Thousands)
BlackRock Muni New York Intermediate Duration Fund, Inc.
Face
Amount Municipal Bonds Value
New York--127.7%
Albany County, New York, IDA, IDR:
$ 760 (Albany College of Pharmacy), Series A, 5.25%
due 12/01/2019 $ 809
1,280 (Special Needs Facilities Pooled Program),
Series K-1, 5% due 7/01/2026 (a) 1,347
Cattaraugus County, New York, IDA, Civic Facility
Revenue Bonds (Saint Bonaventure University
Project), Series A:
695 4.90% due 5/01/2016 723
500 5% due 5/01/2023 523
460 Dutchess County, New York, IDA, Civic Facility
Revenue Bonds (Saint Francis Hospital), Series B,
7.25% due 3/01/2019 507
2,000 Erie County, New York, IDA, Life Care Community
Revenue Bonds (Episcopal Church Home), Series A,
5.875% due 2/01/2018 2,065
1,000 Erie County, New York, IDA, Revenue Bonds
(Orchard Park CCRC, Inc. Project), Series A, 6%
due 11/15/2026 1,074
Erie County, New York, IDA, School Facility Revenue
Bonds (City of Buffalo Project) (e):
3,835 5.75% due 5/01/2024 4,102
1,000 5.75% due 5/01/2026 1,132
750 Essex County, New York, IDA, Solid Waste Disposal,
Revenue Refunding Bonds (International Paper
Company), AMT, Series A, 5.20% due 12/01/2023 783
2,000 Hempstead Town, New York, IDA, Resource Recovery
Revenue Refunding Bonds (American Refinery-Fuel
Co. Project), 5% due 12/01/2010 2,056
5,000 Long Island Power Authority, New York, Electric
System Revenue Refunding Bonds, Series D, 5%
due 9/01/2025 (g) 5,416
1,615 New York City, New York, City Housing Development
Corporation, Presidential Revenue Bonds (The Animal
Medical Center), Series A, 5.50% due 12/01/2033 1,704
1,415 New York City, New York, City IDA, Civic Facility
Revenue Bonds (PSCH Inc. Project), 6.20%
due 7/01/2020 1,520
1,160 New York City, New York, City IDA, Civic Facility
Revenue Refunding Bonds (Special Needs
Facilities Pooled Program), Series A-1, 5.15%
due 7/01/2015 (a) 1,246
New York City, New York, City IDA, PILOT Revenue
Bonds:
2,000 (Queens Baseball Stadium Project), 5%
due 1/01/2031 (b) 2,170
2,400 (Yankee Stadium Project), 5% due 3/01/2031 (d) 2,598
Face
Amount Municipal Bonds Value
New York (continued)
New York City, New York, City IDA, Special Facility
Revenue Bonds, AMT:
$1,500 (1990 American Airlines Inc. Project), 5.40%
due 7/01/2020 $ 1,439
1,000 (British Airways Plc Project), 7.625%
due 12/01/2032 1,123
1,000 (Continental Airlines Inc. Project), 8.375%
due 11/01/2016 1,113
1,000 New York City, New York, City IDA, Special Facility
Revenue Refunding Bonds (Terminal One Group
Association Project), AMT, 5.50% due 1/01/2024 1,093
New York City, New York, GO, Series J:
2,095 5.50% due 6/01/2013 (h) 2,332
1,500 5.25% due 5/15/2018 (g) 1,644
905 5.50% due 6/01/2021 992
1,775 New York City, New York, GO, Sub-Series F-1, 5%
due 9/01/2026 1,895
500 New York City, New York, Trust for Cultural Resources
Revenue Bonds (Museum of American Folk Art),
6.125% due 7/01/2030 (a) 544
2,750 New York Convention Center Development
Corporation, New York, Revenue Bonds (Hotel Unit
Fee Secured), 5% due 11/15/2024 (b) 2,966
1,000 New York State Dormitory Authority, Mental Health
Services Facilities Improvement, Revenue Bonds,
Series B, 5% due 2/15/2030 (b) 1,070
New York State Dormitory Authority, Non-State
Supported Debt, Revenue Refunding Bonds (Mount
Sinai-NYU Medical Center Health System), Series A:
330 6.50% due 7/01/2010 (h) 364
660 6.625% due 7/01/2010 (h) 731
670 6.50% due 7/01/2015 726
340 6.625% due 7/01/2018 370
1,130 New York State Dormitory Authority, Non-State
Supported Debt, Revenue Refunding Bonds (New
York University Hospital Center), Series A, 5%
due 7/01/2016 1,183
New York State Dormitory Authority Revenue Bonds:
1,500 (North Shore Long Island Jewish Group), 5%
due 5/01/2013 1,596
1,735 (Winthrop S. Nassau University), 5.50%
due 7/01/2011 1,847
New York State Dormitory Authority Revenue
Refunding Bonds:
1,305 (Lenox Hill Hospital Obligation Group), 5.75%
due 7/01/2017 1,390
1,000 (State University Educational Facilities), Series A,
5.50% due 5/15/2013 1,092
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Schedule of Investments (continued)
BlackRock New York Muni Intermediate Duration Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
New York (continued)
$ 1,790 New York State Dormitory Authority, State Personal
Income Tax Revenue Bonds (Education), Series F, 5%
due 3/15/2030 $ 1,920
1,500 New York State Dormitory Authority, Supported Debt
Revenue Refunding Bonds (Department of Health),
Series A, 5% due 7/01/2025 (c) 1,604
500 New York State Energy Research and Development
Authority, Gas Facilities Revenue Refunding Bonds
(Brooklyn Union Gas Company/Keyspan), AMT, Series A,
4.70% due 2/01/2024 (d) 517
1,000 New York State Environmental Facilities Corporation,
Solid Waste Disposal Revenue Bonds (Waste
Management, Inc. Project), AMT, Series A, 4.45%
due 7/01/2017 1,008
1,185 New York State, HFA, M/F Housing Revenue Bonds
(Kensico Terrace Apartments), AMT, Series A, 4.75%
due 8/15/2026 1,203
2,635 New York State Mortgage Agency, Homeowner
Mortgage Revenue Bonds, AMT, Series 130, 4.75%
due 10/01/2030 2,675
New York State Mortgage Agency, Homeowner
Mortgage Revenue Refunding Bonds, AMT:
1,000 Series 133, 4.95% due 10/01/2021 1,037
1,000 Series 137, 4.70% due 10/01/2031 1,011
2,000 New York State Municipal Bond Bank Agency, Special
School Purpose Revenue Bonds, Series C, 5.25%
due 12/01/2018 2,162
500 New York State Thruway Authority, General Revenue
Refunding Bonds, Series G, 4.75% due 1/01/2030 (e) 523
2,000 New York State Urban Development Corporation
Revenue Bonds, Subordinate Lien, Corporation Purpose,
Series A, 5.125% due 7/01/2019 2,158
Saratoga County, New York, IDA Civic Facility Revenue
Refunding Bonds (The Saratoga Hospital Project),
Series A (i):
365 4.375% due 12/01/2013 379
380 4.50% due 12/01/2014 396
395 4.50% due 12/01/2015 411
400 Schenectady, New York, GO, TAN, 4.70% due 12/29/2006 400
1,000 Schenectady, New York, IDA, Civic Facility Revenue
Refunding Bonds (Union College Project), 5%
due 7/01/2026 1,076
800 Suffolk County, New York, IDA, Continuing Care and
Retirement, Revenue Refunding Bonds (Jeffersons Ferry
Project), 4.625% due 11/01/2016 825
1,000 Tobacco Settlement Financing Corporation of New York,
Asset-Backed Revenue Bonds, Series A-1, 5.25%
due 6/01/2016 1,053
Face
Amount Municipal Bonds Value
New York (concluded)
$ 1,000 Tobacco Settlement Financing Corporation of New York
Revenue Bonds, Series C-1, 5.50% due 6/01/2022 $ 1,096
Tompkins County, New York, IDA, Care Community
Revenue Refunding Bonds (Kendal at Ithaca), Series A-2:
250 5.75% due 7/01/2018 256
1,000 6% due 7/01/2024 1,029
1,000 Triborough Bridge and Tunnel Authority, New York,
Revenue Bonds, Series A, 5% due 11/15/2031 1,081
1,250 Utica, New York, IDA, Civic Facility Revenue Bonds
(Utica College Project), Series A, 6.875% due
6/01/2009 (h) 1,354
Westchester County, New York, IDA, Civic Facility
Revenue Bonds (Special Needs Facilities Pooled
Program):
515 Series D-1, 6.80% due 7/01/2019 550
305 Series E-1, 5.50% due 7/01/2007 307
750 Yonkers, New York, IDA, Revenue Bonds (Sacred
Heart Associates, LP Project), AMT, Series A, 4.80%
due 10/01/2026 771
Guam--3.4%
1,000 A.B. Won Guam International Airport Authority, General
Revenue Refunding Bonds, AMT, Series C, 5.25%
due 10/01/2022 (g) 1,051
1,000 Guam Government Waterworks Authority, Water and
Wastewater System, Revenue Refunding Bonds, 6%
due 7/01/2025 1,104
Puerto Rico--11.9%
Children's Trust Fund Project of Puerto Rico, Tobacco
Settlement Revenue Refunding Bonds:
750 5% due 5/15/2011 775
1,015 5.375% due 5/15/2033 1,069
1,000 Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Refunding Bonds, Series K, 5% due 7/01/2030 1,058
500 Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax Bonds, Series B, 5% due 7/01/2031 532
1,000 Puerto Rico Commonwealth, Public Improvement, GO,
Series A, 5.25% due 7/01/2030 1,093
1,000 Puerto Rico Municipal Finance Agency, GO, Series A,
5.25% due 8/01/2025 1,085
1,900 Puerto Rico Public Finance Corporation, Commonwealth
Appropriation Revenue Bonds, Series E, 5.70%
due 2/01/2010 (h) 2,023
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Schedule of Investments (concluded)
BlackRock New York Muni Intermediate Duration Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
U.S. Virgin Islands--2.5%
$ 500 Virgin Islands Government Refinery Facilities, Revenue
Refunding Bonds (Hovensa Coker Project), AMT, 6.50%
due 7/01/2021 $ 567
1,000 Virgin Islands Public Finance Authority, Senior Lien
Revenue Bonds (Matching Fund Loan Note), Series A,
5.25% due 10/01/2024 1,068
Total Municipal Bonds
(Cost--$88,919)--145.5% 93,512
Shares
Held Short-Term Securities Value
470 CMA New York Municipal Money Fund,
2.99% (f)(j) $ 470
Total Short-Term Securities
(Cost--$470)--0.7% 470
Total Investments (Cost--$89,390*)--146.2% 93,982
Other Assets Less Liabilities--2.0% 1,310
Preferred Stock, at Redemption Value--(48.2%) (31,011)
----------
Net Assets Applicable to Common Stock--100.0% $ 64,281
==========
* The cost and unrealized appreciation (depreciation) of investments
as of November 30, 2006, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 89,324
===============
Gross unrealized appreciation $ 4,658
Gross unrealized depreciation --++
---------------
Net unrealized appreciation $ 4,658
===============
++ Amount is less than $1,000.
(a) ACA Insured.
(b) AMBAC Insured.
(c) CIFG Insured.
(d) FGIC Insured.
(e) FSA Insured.
(f) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA New York Municipal
Money Fund 1,871 $27
(g) MBIA Insured.
(h) Prerefunded.
(i) Radian Insured.
(j) Represents the current yield as of November 30, 2006.
o Forward interest rate swaps outstanding as of November 30, 2006
were as follows:
Notional Unrealized
Amount Depreciation
Pay a fixed rate of 3.856% and receive
a floating rate based on 1-week Bond
Market Association rate
Broker, JPMorgan Chase
Expires December 2016 $ 3,750 $(91)
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Statements of Net Assets
BlackRock BlackRock
Muni Muni New York
Intermediate Intermediate
Duration Duration
As of November 30, 2006 Fund, Inc. Fund, Inc.
Assets
Investments in unaffiliated securities, at value* $ 927,036,965 $ 93,511,746
Investments in affiliated securities, at value** -- 470,544
Cash 499,427 67,345
Interest receivable 16,050,420 1,396,402
Receivable for securities sold 481,863 --
Prepaid expenses 35,261 19,298
--------------- ---------------
Total assets 944,103,936 95,465,335
--------------- ---------------
Liabilities
Trust certificates 30,035,000 --
Unrealized depreciation on forward interest rate swaps 607,092 90,904
Dividends payable to Common Stock shareholders 400,906 45,829
Payable to investment adviser 298,707 30,823
Interest expense payable 222,855 --
Payable to other affiliates 7,264 755
Accrued expenses 35,036 5,370
--------------- ---------------
Total liabilities 31,606,860 173,681
--------------- ---------------
Preferred Stock
Preferred Stock, at redemption value, par value $.10 per share++ of
AMPS+++ at $25,000 per share liquidation preference 320,106,346 31,011,041
--------------- ---------------
Net Assets Applicable to Common Stock
Net assets applicable to Common Stock $ 592,390,730 $ 64,280,613
=============== ===============
Analysis of Net Assets Applicable to Common Stock
Undistributed investment income--net $ 4,619,947 $ 363,831
Undistributed (accumulated) realized capital gains (losses)--net 2,465,332 (214,903)
Unrealized appreciation--net 44,803,783 4,501,573
--------------- ---------------
Total accumulated earnings--net 51,889,062 4,650,501
--------------- ---------------
Common Stock, par value $.10 per share++++ 3,803,493 420,644
Paid-in capital in excess of par $ 536,698,175 $ 59,209,468
=============== ===============
Net Assets Applicable to Common Stock $ 592,390,730 $ 64,280,613
=============== ===============
Net asset value per share of Common Stock $ 15.57 $ 15.28
=============== ===============
Market price per share of Common Stock $ 15.25 $ 13.80
=============== ===============
* Identified cost of unaffiliated securities $ 881,626,090 $ 88,919,269
=============== ===============
** Identified cost of affiliated securities -- $ 470,544
=============== ===============
++ Preferred Stock authorized, issued and outstanding:
Series M7 Shares 2,000 --
=============== ===============
Series T7 Shares 2,700 --
=============== ===============
Series W7 Shares 2,000 --
=============== ===============
Series TH7 Shares 2,700 --
=============== ===============
Series F7 Shares 2,000 1,240
=============== ===============
Series TH28 Shares 1,400 --
=============== ===============
++++ Common Stock issued and outstanding 38,034,934 4,206,439
=============== ===============
+++ Auction Market Preferred Stock.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Statements of Operations
BlackRock BlackRock
Muni Muni New York
Intermediate Intermediate
Duration Duration
For the Six Months Ended November 30, 2006 Fund, Inc. Fund, Inc.
Investment Income
Interest and amortization of premium and discount earned $ 22,620,498 $ 2,195,208
Dividends from affiliates -- 27,474
--------------- ---------------
Total income 22,620,498 2,222,682
--------------- ---------------
Expenses
Investment advisory fees 2,479,700 257,911
Interest expense and fees 550,095 --
Commission fees 404,044 39,950
Accounting services 127,673 31,498
Transfer agent fees 47,330 14,100
Professional fees 31,108 26,457
Printing and shareholder reports 24,101 2,895
Custodian fees 21,716 3,845
Directors' fees and expenses 10,578 10,814
Listing fees 11,685 8,419
Pricing fees 13,921 5,047
Other 37,749 14,031
--------------- ---------------
Total expenses before waiver and reimbursement 3,759,700 414,967
Waiver and/or reimbursement of expenses (676,282) (74,123)
--------------- ---------------
Total expenses after waiver and/or reimbursement 3,083,418 340,844
--------------- ---------------
Investment income--net 19,537,080 1,881,838
--------------- ---------------
Realized & Unrealized Gain (Loss)--Net
Realized gain (loss) on:
Investments--net 245,643 66,720
Forward interest rate swaps--net (1,826,219) --
--------------- ---------------
Total realized gain (loss)--net (1,580,576) 66,720
--------------- ---------------
Change in unrealized appreciation/depreciation on:
Investments--net 22,484,238 2,623,554
Forward interest rate swaps--net (690,438) (90,904)
--------------- ---------------
Total change in unrealized appreciation/depreciation--net 21,793,800 2,532,650
--------------- ---------------
Total realized and unrealized gain--net 20,213,224 2,599,370
--------------- ---------------
Dividends & Distributions to Preferred Stock Shareholders
Investment income--net (4,850,918) (509,498)
Realized gain--net (1,165,472) --
--------------- ---------------
Total dividends and distributions to Preferred Stock shareholders (6,016,390) (509,498)
--------------- ---------------
Net Increase in Net Assets Resulting from Operations $ 33,733,914 $ 3,971,710
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Statements of Changes in Net Assets
BlackRock Muni
Intermediate Duration Fund
For the Six For the
Months Ended Year Ended
November 30, May 31,
Increase (Decrease) in Net Assets: 2006 2006
Operations
Investment income--net $ 19,537,080 $ 39,613,750
Realized gain (loss)--net (1,580,576) 7,023,492
Change in unrealized appreciation/depreciation--net 21,793,800 (12,802,039)
Dividends and distributions to Preferred Stock shareholders (6,016,390) (9,360,228)
--------------- ---------------
Net increase in net assets resulting from operations 33,733,914 24,474,975
--------------- ---------------
Dividends & Distributions to Common Stock Shareholders
Investment income--net (14,377,205) (32,101,484)
Realized gain--net -- (8,646,634)
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions to
Common Stock shareholders (14,377,205) (40,748,118)
--------------- ---------------
Stock Transactions
Offering and underwriting costs resulting from the issuance of Preferred Stock -- (494,868)
--------------- ---------------
Net decrease in net assets derived from stock transactions -- (494,868)
--------------- ---------------
Net Assets Applicable to Common Stock
Total increase (decrease) in net assets applicable to Common Stock 19,356,709 (16,768,011)
Beginning of period 573,034,021 589,802,032
--------------- ---------------
End of period* $ 592,390,730 $ 573,034,021
=============== ===============
* Undistributed investment income--net $ 4,619,947 $ 4,310,990
=============== ===============
See Notes to Financial Statements.
Statements of Changes in Net Assets
BlackRock Muni New York
Intermediate Duration Fund
For the Six For the
Months Ended Year Ended
November 30, May 31,
Increase (Decrease) in Net Assets: 2006 2006
Operations
Investment income--net $ 1,881,838 $ 3,671,782
Realized gain--net 66,720 285,861
Change in unrealized appreciation/depreciation--net 2,532,650 (1,852,166)
Dividends to Preferred Stock shareholders (509,498) (821,449)
--------------- ---------------
Net increase in net assets resulting from operations 3,971,710 1,284,028
--------------- ---------------
Dividends to Common Stock Shareholders
Investment income--net (1,362,886) (2,902,443)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Stock shareholders (1,362,886) (2,902,443)
--------------- ---------------
Net Assets Applicable to Common Stock
Total increase (decrease) in net assets applicable to Common Stock 2,608,824 (1,618,415)
Beginning of period 61,671,789 63,290,204
--------------- ---------------
End of period* $ 64,280,613 $ 61,671,789
=============== ===============
* Undistributed investment income--net $ 363,831 $ 354,377
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Financial Highlights (As Restated for the Years Ended 2006 and 2005. See Note 7)
BlackRock Muni Intermediate Duration Fund, Inc.
For the Six For the Period
Months Ended For the Year August 1, 2003++
The following per share data and ratios have been derived November 30, Ended May 31, to May 31,
from information provided in the financial statements. 2006 2006 2005 2004
Per Share Operating Performance
Net asset value, beginning of period $ 15.07 $ 15.51 $ 14.52 $ 14.33
----------- ----------- ----------- -----------
Investment income--net .51+++++ 1.04+++++ 1.02+++++ .79
Realized and unrealized gain (loss)--net .53 (.15) 1.15 .21
Dividends and distributions to Preferred Stock shareholders:
Investment income--net (.13) (.21) (.11) (.06)
Realized gain--net (.03) (.04) (.02) --
----------- ----------- ----------- -----------
Total from investment operations .88 .64 2.04 .94
----------- ----------- ----------- -----------
Less dividends and distributions to Common Stock shareholders:
Investment income--net (.38) (.84) (.86) (.65)
Realized gain--net -- (.23) (.19) --
----------- ----------- ----------- -----------
Total dividends and distributions to Common Stock shareholders (.38) (1.07) (1.05) (.65)
----------- ----------- ----------- -----------
Offering costs resulting from issuance of Common Stock -- -- -- (.02)
----------- ----------- ----------- -----------
Offering and underwriting costs resulting from issuance of
Preferred Stock -- (.01) -- (.08)
----------- ----------- ----------- -----------
Net asset value, end of period $ 15.57 $ 15.07 $ 15.51 $ 14.52
=========== =========== =========== ===========
Market price per share, end of period $ 15.25 $ 14.52 $ 13.94 $ 13.10
=========== =========== =========== ===========
Total Investment Return**
Based on net asset value per share 6.00%+++ 4.71% 15.36% 6.09%+++
=========== =========== =========== ===========
Based on market price per share 7.75%+++ 12.25% 14.93% (8.59%)+++
=========== =========== =========== ===========
Ratios Based on Average Net Assets Applicable to Common Stock
Total expenses, net of waiver and excluding interest expense*** .87%* .87% .84% .75%*
=========== =========== =========== ===========
Total expenses, net of waiver*** 1.06%* 1.00% .85% .75%*
=========== =========== =========== ===========
Total expenses*** 1.29%* 1.24% 1.07% 1.03%*
=========== =========== =========== ===========
Total investment income--net*** 6.73%* 6.82% 6.77% 6.51%*
=========== =========== =========== ===========
Amount of dividends to Preferred Stock shareholders 1.67%* 1.36% .74% .48%*
=========== =========== =========== ===========
Investment income--net, to Common Stock shareholders 5.06%* 5.46% 6.03% 6.03%*
=========== =========== =========== ===========
Ratios Based on Average Net Assets Applicable to Preferred Stock
Dividends to Preferred Stock shareholders 3.02%* 2.51% 1.50% .97%*
=========== =========== =========== ===========
Supplemental Data
Net assets applicable to Common Stock, end of period (in thousands) $ 592,391 $ 573,034 $ 589,802 $ 552,179
=========== =========== =========== ===========
Preferred Stock outstanding at liquidation preference,
end of period (in thousands) $ 320,000 $ 320,000 $ 285,000 $ 285,000
=========== =========== =========== ===========
Portfolio turnover 6% 49% 54% 70%
=========== =========== =========== ===========
Leverage
Asset coverage per $1,000 $ 2,851 $ 2,791 $ 3,069 $ 2,937
=========== =========== =========== ===========
Dividends Per Share on Preferred Stock Outstanding
Series M7++++--Investment income--net $ 360 $ 613 $ 372 $ 190
=========== =========== =========== ===========
Series T7++++--Investment income--net $ 372 $ 624 $ 377 $ 192
=========== =========== =========== ===========
Series W7++++--Investment income--net $ 385 $ 623 $ 374 $ 188
=========== =========== =========== ===========
Series TH7++++--Investment income--net $ 390 $ 631 $ 375 $ 188
=========== =========== =========== ===========
Series F7++++--Investment income--net $ 384 $ 611 $ 373 $ 189
=========== =========== =========== ===========
Series TH28++++++--Investment income--net $ 382 $ 580 -- --
=========== =========== =========== ===========
* Annualized.
** Total investment returns based on market value, which can be significantly greater or
lesser than the net asset value, may result in substantially different returns. Total
investment returns exclude the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Commencement of operations.
++++ Issued on August 20, 2003.
++++++ Issued on August 3, 2005.
+++ Aggregate total investment return.
+++++ Based on average shares outstanding.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Financial Highlights (concluded)
BlackRock Muni New York Intermediate Duration Fund, Inc.
For the Six For the Period
Months Ended For the Year August 1, 2003++
The following per share data and ratios have been derived November 30, Ended May 31, to May 31,
from information provided in the financial statements. 2006 2006 2005 2004
Per Share Operating Performance
Net asset value, beginning of period $ 14.66 $ 15.05 $ 14.45 $ 14.33
----------- ----------- ----------- -----------
Investment income--net .45+++++ .87+++++ .85+++++ .68
Realized and unrealized gain (loss)--net .61 (.37) .58 .19
Dividends to Preferred Stock shareholders from investment income--net (.12) (.20) (.11) (.06)
Total from investment operations .94 .30 1.32 .81
----------- ----------- ----------- -----------
Less dividends to Common Stock shareholders from investment
income--net (.32) (.69) (.72) (.54)
----------- ----------- ----------- -----------
Offering costs resulting from issuance of Common Stock -- -- -- (.03)
----------- ----------- ----------- -----------
Offering and underwriting costs resulting from issuance of
Preferred Stock -- -- -- (.12)
----------- ----------- ----------- -----------
Net asset value, end of period $ 15.28 $ 14.66 $ 15.05 $ 14.45
=========== =========== =========== ===========
Market price per share, end of period $ 13.80 $ 13.03 $ 13.44 $ 12.79
=========== =========== =========== ===========
Total Investment Return**
Based on net asset value per share 6.76%+++ 2.52% 9.99% 4.71%+++
=========== =========== =========== ===========
Based on market price per share 8.48%+++ 2.03% 10.97% (11.46%)+++
=========== =========== =========== ===========
Ratios Based on Average Net Assets Applicable to Common Stock
Total expenses, net of waiver and reimbursement*** 1.09%* 1.10% 1.15% .81%*
=========== =========== =========== ===========
Total expenses*** 1.32%* 1.33% 1.38% 1.19%*
=========== =========== =========== ===========
Total investment income--net*** 6.00%* 5.89% 5.75% 5.40%*
=========== =========== =========== ===========
Amount of dividends to Preferred Stock shareholders 1.63%* 1.32% .77% .45%*
=========== =========== =========== ===========
Investment income--net, to Common Stock shareholders 4.38%* 4.57% 4.98% 4.95%*
=========== =========== =========== ===========
Ratios Based on Average Net Assets Applicable to Preferred Stock
Dividends to Preferred Stock shareholders 3.28%* 2.65% 1.55% .96%*
=========== =========== =========== ===========
Supplemental Data
Net assets applicable to Common Stock, end of period
(in thousands) $ 64,281 $ 61,672 $ 63,290 $ 60,778
=========== =========== =========== ===========
Preferred Stock outstanding at liquidation preference,
end of period (in thousands) $ 31,000 $ 31,000 $ 31,000 $ 31,000
=========== =========== =========== ===========
Portfolio turnover 24% 49% 17% 21%
=========== =========== =========== ===========
Leverage
Asset coverage per $1,000 $ 3,074 $ 2,989 $ 3,042 $ 2,961
=========== =========== =========== ===========
Dividends Per Share on Preferred Stock Outstanding
Series F7++++--Investment income--net $ 411 $ 662 $ 389 $ 188
=========== =========== =========== ===========
* Annualized.
** Total investment returns based on market value, which can be significantly greater or
lesser than the net asset value, may result in substantially different returns.
Total investment returns exclude the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Commencement of operations.
++++ Issued on August 20, 2003.
+++ Aggregate total investment return.
+++++ Based on average shares outstanding.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Notes to Financial Statements
1. Significant Accounting Policies:
On September 29, 2006, Muni Intermediate Duration Fund, Inc. and Muni New York
Intermediate Duration Fund, Inc. were renamed BlackRock Muni Intermediate
Duration Fund, Inc. and BlackRock Muni New York Intermediate Duration Fund,
Inc. (the "Funds" or individually as the "Fund"), respectively. The Funds are
registered under the Investment Company Act of 1940, as amended, as non-
diversified, closed-end management investment companies. The Funds' financial
statements are prepared in conformity with U.S. generally accepted accounting
principles, which may require the use of management accruals and estimates.
Actual results may differ from these estimates. These unaudited financial
statements reflect all adjustments, which are, in the opinion of management,
necessary to present a fair statement of the results for the interim period.
All such adjustments are of a normal, recurring nature. The Funds determine
and make available for publication the net asset values of their Common Stock
on a daily basis. Each Fund's Common Stock shares are listed on the New York
Stock Exchange under the symbol MUI for BlackRock Muni Intermediate Duration
Fund, Inc. and MNE for BlackRock Muni New York Intermediate Duration Fund, Inc.
(a) Valuation of investments--Municipal bonds are traded primarily in the over-
the-counter ("OTC") markets and are valued at the last available bid price in
the OTC markets or on the basis of values as obtained by a pricing service.
Pricing services use valuation matrixes that incorporate both dealer-supplied
valuations and valuation models. The procedures of the pricing service and its
valuations are reviewed by the officers of the Funds under the general
direction of the Board of Directors. Such valuations and procedures are
reviewed periodically by the Board of Directors of the Funds. Financial
futures contracts and options thereon, which are traded on exchanges, are
valued at their closing prices as of the close of such exchanges. Options
written or purchased are valued at the last sale price in the case of exchange-
traded options. Options traded in the OTC market are valued at the last asked
price (options written) or the last bid price (options purchased). Swap
agreements are valued by quoted fair valuations received daily by the Fund's
pricing service. Short-term investments with a remaining maturity of 60 days
or less are valued at amortized cost, which approximates market value, under
which method the investment is valued at cost and any premium or discount is
amortized on a straight line basis to maturity. Investments in open-end
investment companies are valued at their net asset value each business day.
Securities and other assets for which market quotations are not readily
available are valued at fair value as determined in good faith by or under the
direction of the Board of Directors of the Funds.
(b) Derivative financial instruments--Each Fund may engage in various
portfolio investment strategies both to increase the return of the Fund and to
hedge, or protect, its exposure to interest rate movements and movements in
the securities markets. Losses may arise due to changes in the value of the
contract or if the counterparty does not perform under the contract.
* Financial futures contracts--Each Fund may purchase or sell financial
futures contracts and options on such financial futures contracts. Financial
futures contracts are contracts for delayed delivery of securities at a
specific future date and at a specific price or yield. Upon entering into a
contract, the Fund deposits and maintains as collateral such initial margin as
required by the exchange on which the transaction is effected. Pursuant to the
contract, the Fund agrees to receive from or pay to the broker an amount of
cash equal to the daily fluctuation in value of the contract. Such receipts or
payments are known as variation margin and are recorded by the Fund as
unrealized gains or losses. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
* Options--Each Fund may purchase and write call and put options. When the
Fund writes an option, an amount equal to the premium received by the Fund is
reflected as an asset and an equivalent liability. The amount of the liability
is subsequently marked-to-market to reflect the current market value of the
option written. When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or deducted from)
the basis of the security acquired or deducted from (or added to) the proceeds
of the security sold. When an option expires (or the Fund enters into a
closing transaction), the Fund realizes a gain or loss on the option to the
extent of the premiums received or paid (or gain or loss to the extent the
cost of the closing transaction exceeds the premium paid or received). Written
and purchased options are non-income producing investments.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
* Forward interest rate swaps--Each Fund may enter into forward interest rate
swaps. In a forward interest rate swap, the Fund and the counterparty agree to
make periodic net payments on a specified notional contract amount, commencing
on a specified future effective date, unless terminated earlier. When the
agreement is closed, the Fund records a realized gain or loss in an amount
equal to the value of the agreement.
* Swaps--Each Fund may enter into swap agreements which are OTC contracts in
which the Fund and a counterparty agree to make periodic net payments on a
specified notional amount. The net payments can be made for a set period of
time or may be triggered by a predetermined credit event. The net periodic
payments may be based on a fixed or variable interest rate; the change in
market value of a specific security, basket of securities, or index; or the
return generated by a security. These periodic payments received or made by
the Fund are recorded in the accompanying Statement of Operations as realized
gains or losses, respectively. Gains or losses are also realized upon
termination of the swap agreements. Swaps are marked-to-market daily and
changes in value are recorded as unrealized appreciation (depreciation). Risks
include changes in the returns of the underlying instruments, failure of the
counterparties to perform under the contracts' terms and the possible lack of
liquidity with respect to the swap agreements.
(c) Municipal bonds held in trust--Certain Funds invest in leveraged residual
certificates ("TOB Residuals") issued by tender option bond trusts ("TOBs"). A
TOB is established by a third party sponsor forming a special purpose entity,
into which a Fund, or an agent on behalf of the Fund, transfers municipal
securities. A TOB typically issues two classes of beneficial interests: short-
term floating rate certificates, which are sold to third party investors, and
residual certificates, which are generally issued to the Fund which made the
transfer or to affiliates of the Fund. Each Fund's transfers of the municipal
securities to a TOB do not qualify for sale treatment under Statement of
Financial Accounting Standards No. 140 "Accounting for Transfers and Servicing
of Financial Assets and Extinguishments of Liabilities," therefore the
municipal securities deposited into a TOB are presented in the Funds'
schedules of investments and the proceeds from the transactions are reported
as a liability for trust certificates of the Funds. Similarly, proceeds from
residual certificates issued to affiliates, if any, from the transaction are
included in the liability for trust certificates. Interest income from the
underlying security is recorded by the Funds on an accrual basis. Interest
expense incurred on the secured borrowing and other expenses related to
remarketing, administration and trustee services to a TOB are reported as
expenses of a Fund. The floating rate certificates have interest rates that
generally reset weekly and their holders have the option to tender
certificates to the TOB for redemption at par at each reset date. The residual
interests held by the Funds include the right of the Funds (1) to cause the
holders of a proportional share of floating rate certificates to tender their
certificates at par, and (2) to transfer a corresponding share of the
municipal securities from the TOB to the Funds. At November 30, 2006, in
reference to BlackRock Muni Intermediate Duration Fund, Inc., the aggregate
value of the underlying municipal securities transferred to TOBs was
$64,121,688, the related liability for trust certificates was $30,035,000 and
the range of interest rates was 3.50% to 3.52%. BlackRock Muni New York
Intermediate Duration Fund, Inc. did not invest in these types of securities
for the six months ended November 30, 2006.
Financial transactions executed through TOBs generally will under perform the
market for fixed rate municipal bonds in a rising interest rate environment,
but tend to outperform the market for fixed rate bonds when interest rates
decline or remain relatively stable. Should short-term interest rates rise,
the Funds' investment in TOB Residuals likely will adversely affect the Funds'
investment income-net and distributions to shareholders. Fluctuations in the
market value of municipal securities deposited into the TOB may adversely
affect the Funds' net asset value per share.
While the Funds' investment policies and restrictions expressly permit
investments in inverse floating rate securities such as TOB Residuals, they
generally do not allow the Funds to borrow money for purposes of making
investments. The Funds' management believes that the Funds' restrictions on
borrowings do not apply to the secured borrowings deemed to have occurred for
accounting purposes.
(d) Income taxes--It is each Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Notes to Financial Statements (continued)
(e) Security transactions and investment income--Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
Interest income is recognized on the accrual basis. The Funds amortize all
premiums and discounts on debt securities.
(f) Dividends and distributions--Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates.
(g) Offering costs--Direct expenses relating to the public offering of
BlackRock Muni Intermediate Duration Fund, Inc.'s Preferred Stock were charged
to capital at the time of issuance of the shares.
(h) Recent accounting pronouncements--In July 2006, the Financial Accounting
Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes - an interpretation of FASB Statement No.
109." FIN 48 prescribes the minimum recognition threshold a tax position must
meet in connection with accounting for uncertainties in income tax positions
taken or expected to be taken by an entity including mutual funds before being
measured and recognized in the financial statements. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006. The impact on the
Funds' financial statements, if any, is currently being assessed.
In addition, in September 2006, Statement of Financial Accounting Standards
No. 157, "Fair Value Measurements" ("FAS 157"), was issued and is effective
for fiscal years beginning after November 15, 2007. FAS 157 defines fair
value, establishes a framework for measuring fair value and expands
disclosures about fair value measurements. Management is currently evaluating
the implications of FAS 157. At this time its impact on the Funds' financial
statements has not been determined.
2. Investment Advisory Agreement and Transactions with Affiliates:
On September 29, 2006, BlackRock, Inc. and Merrill Lynch & Co., Inc. ("Merrill
Lynch") combined Merrill Lynch's investment management business, Merrill Lynch
Investment Managers L.P. ("MLIM") and its affiliates, including Fund Asset
Management, L.P. ("FAM"), with BlackRock, Inc. to create a new independent
company. Merrill Lynch has a 49.8% economic interest and a 45% voting interest
in the combined company and The PNC Financial Services Group, Inc. ("PNC"),
has approximately a 34% economic and voting interest. The new company operates
under the BlackRock name and is governed by a board of directors with a
majority of independent members.
On August 15, 2006, shareholders of each Fund approved a new Investment
Advisory Agreement with BlackRock Advisors, Inc. (the "Manager"), an indirect
wholly owned subsidiary of BlackRock, Inc. BlackRock Advisors, Inc. was
recently reorganized into a limited liability company and renamed BlackRock
Advisors, LLC. The new Investment Advisory Agreement between each Fund and the
Manager became effective on September 29, 2006. Prior to September 29, 2006,
FAM was the Investment Adviser. The general partner of FAM is Princeton
Services, Inc. ("PSI"), an indirect, wholly owned subsidiary of Merrill Lynch,
which is the limited partner.
The Manager is responsible for the management of each Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain other
services necessary to the operations of the Funds. For such services, each
Fund pays a monthly fee at an annual rate of .55% of the Fund's average daily
net assets, including proceeds from the issuance of Preferred Stock. The
Manager (and formerly FAM) has contractually agreed to waive a portion of its
fee during the first seven years of each Fund's operations ending July 31,
2010, as follows:
Fee Waiver
(As a Percentage
of Average Daily
Net Assets)
Years 1 through 5 .15%
Year 6 .10%
Year 7 .05%
Year 8 and thereafter .00%
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Notes to Financial Statements (continued)
The Manager (and previously FAM) has not agreed to waive any portion of its
fee beyond July 31, 2010.
For the period June 1, 2006 to September 29, 2006, FAM earned fees and waived
a portion of its fees as follows:
Investment Advisory Fees
Fees Earned by Waived by
FAM FAM
BlackRock Muni Intermediate
Duration Fund, Inc. $1,660,595 $452,890
BlackRock Muni New York
Intermediate Duration
Fund, Inc. $ 172,505 $ 46,271
For the period September 30, 2006 to November 30, 2006, the Manager
earned fees and waived a portion of its fees as follows:
Investment Advisory Fees
Fees Earned by Waived by
the Manager the Manager
BlackRock Muni Intermediate
Duration Fund, Inc. $ 819,105 $223,392
BlackRock Muni New York
Intermediate Duration
Fund, Inc. $ 85,406 $ 24,069
In addition, the Manager has entered into a sub-advisory agreement with
BlackRock Investment Management, LLC, an affiliate of the Manager, under which
the Manager pays the Sub-Adviser for services it provides a fee equal to 59%
of the management fee paid by each Fund to the Manager.
In addition, FAM and/or the Manager has agreed to reimburse its management fee
by the amount of management fees BlackRock Muni New York Intermediate Duration
Fund, Inc. pays to FAM and/or the Manager indirectly through its investment in
CMA New York Municipal Money Fund. The reimbursements were as follows:
For the Period For the Period
June 1, 2006 to Sept. 30, 2006 to
Sept. 29, 2006 Nov. 30, 2006
Reimbursement Reimbursement
by FAM by the Manager
$2,577 $1,206
For the six months ended November 30, 2006, each Fund reimbursed FAM and/or
the Manager for certain accounting services. The reimbursements were as
follows:
For the Period For the Period
June 1, 2006 to Sept. 30, 2006 to
Sept. 29, 2006 Nov. 30, 2006
Reimbursement Reimbursement
to FAM to the Manager
BlackRock Muni
Intermediate Duration
Fund, Inc. $6,165 $3,083
BlackRock Muni
New York Intermediate
Duration Fund, Inc. $ 652 $ 326
Prior to September 29, 2006, certain officers and/or directors of the Funds
were officers and/or directors of FAM, MLIM, PSI, FAMD and/or Merrill Lynch.
Commencing September 29, 2006, certain officers and/or directors of the Funds
are officers and/or directors of BlackRock, Inc. or its affiliates.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
six months ended November 30, 2006 were as follows:
BlackRock
BlackRock Muni Muni New York
Intermediate Intermediate
Duration Duration
Fund, Inc. Fund, Inc.
Total Purchases $50,452,162 $22,672,315
Total Sales $54,433,974 $21,434,327
4. Stock Transactions:
Each Fund is authorized to issue 200,000,000 shares of stock, including
Preferred Stock, par value $.10 per share, all of which were initially
classified as Common Stock. The Board of Directors is authorized, however, to
reclassify any unissued shares of beneficial interest without approval of the
holders of Common Stock.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Notes to Financial Statements (continued)
Preferred Stock
Auction Market Preferred Stock are redeemable shares of Preferred Stock of the
Funds, with a par value of $.10 per share and a liquidation preference of
$25,000 per share plus accrued and unpaid dividends that entitle their holders
receive cash dividends at an annual rate that may vary for the successive
dividend periods. The yields in effect at November 30, 2006 were as follows:
BlackRock
BlackRock Muni Muni New York
Intermediate Intermediate
Duration Duration
Fund, Inc. Fund, Inc.
Series M7 3.45% --
Series T7 3.50% --
Series TH7 3.61% --
Series W7 3.58% --
Series F7 3.49% 3.25%
Series TH28 3.62% --
BlackRock Muni Intermediate Duration Fund, Inc.
Shares issued and outstanding during the six months ended November 30, 2006
remained constant and during the year ended May 31, 2006 increased by 1,400
from the issuance of an additional series of Preferred Stock.
BlackRock Muni New York Intermediate Duration Fund, Inc.
Shares issued and outstanding during the six months ended November 30, 2006
and during the year ended May 31, 2006 remained constant.
Each Fund pays commissions to certain broker-dealers at the end of each
auction at an annual rate ranging from .25% to .375%, calculated on the
proceeds of each auction. For the six months ended November 30, 2006, Merrill
Lynch, Pierce, Fenner & Smith Incorporated, an affiliate of FAM, earned
$305,565 relating to BlackRock Muni Intermediate Duration Fund, Inc. and
$30,072 relating to BlackRock Muni New York Intermediate Duration Fund, Inc.,
as commissions.
5. Capital Loss Carryforward:
BlackRock Muni New York Intermediate Duration Fund, Inc.
On May 31, 2006, the Fund had a net capital loss carry-forward of $281,623,
all of which expires in 2013. This amount will be available to offset like
amounts of any future taxable gains.
6. Subsequent Event:
Each Fund paid a tax-exempt income dividend to holders of Common Stock on
December 28, 2006 to shareholders of record on December 15, 2006. The amount
of the tax-exempt income dividend per share was as follows:
Per Share
Amount
BlackRock Muni Intermediate Duration Fund, Inc. $.061000
BlackRock Muni New York Intermediate
Duration Fund, Inc. $.053000
In addition, BlackRock Muni Intermediate Duration Fund, Inc. paid an ordinary
income dividend to holders of Common Stock in the amount of $.082059 per share
and a long-term capital gain dividend in the amount of $.036923 per share on
December 28, 2006 to shareholders of record on December 15, 2006.
7. Restatement Information for BlackRock Muni Intermediate Duration Fund,
Inc.:
Prior to the issuance of its November 30, 2006 financial statements, the Fund
determined that the criteria for sale accounting in Statement of Financial
Accounting Standards No. 140 had not been met for certain transfers of
municipal bonds during the fiscal years ended May 31, 2006 and 2005, and that
transfers should have been accounted for as secured borrowings rather than as
sales. Accordingly, the Fund has restated the financial highlights for the
years ended May 31, 2006 and 2005 to give effect to recording the transfers of
the municipal bonds as secured borrowings, including recording interest on the
bonds as interest income and interest on the secured borrowings as interest
expense.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Notes to Financial Statements (concluded)
Financial Highlights for BlackRock Muni Intermediate Duration Fund, Inc.
For the Years Ended May 31, 2006 and 2005
2006 2005
Previously Previously
Reported Restated Reported Restated
Total expenses, net of waiver*** .87% 1.00% .84% .85%
Total expenses*** 1.10% 1.24% 1.07% 1.07%
Portfolio turnover 50.53% 49% 54.55% 54%
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
While the Statement of Net Assets for the Fund as of May 31, 2006 and 2005,
not presented herein, have not been reissued to give effect to the
restatement, the principal effects of the restatement would be to increase
investments and payable for floating rate certificates by corresponding
amounts at each year, with no effect on previously reported net assets.
The Statement of Operations for the Fund for the years ended May 31, 2006
and 2005, not presented herein, have not been reissued to give effect to the
restatement. However, the principal effects of the restatement would be to
increase interest income and interest expense and fees by corresponding
amounts each year, and where applicable, to revise realized gain (loss) on
investments - net, and the change in unrealized appreciation/depreciation on
investments - net, by corresponding and offsetting amounts.
The Statements of Changes in Net Assets for the Fund for the year ended May
31, 2005, not presented herein, have not been reissued to give effect to the
restatement, but the principal effects of a restatement, where applicable,
would be to revise previously reported realized gain (loss) on investments -
net, and change in unrealized appreciation/depreciation - net, by corresponding
and offsetting amounts.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Disclosure of Investment Advisory Agreement
BlackRock Investment Advisory Agreement--Matters Considered by the Boards
The following disclosure appeared in the May 31, 2006 Annual Reports of the
Funds and is the discussion referred to in "New BlackRock Sub-Advisory
Agreement - Matters Considered by the Boards" below.
In connection with the Transaction between Merrill Lynch and BlackRock, each
Fund's Board of Directors considered a new investment advisory agreement (each
a "New Investment Advisory Agreement") between the Fund and BlackRock Advisors,
Inc. or its successor ("BlackRock Advisors"). If each Fund's New Investment
Advisory Agreement is approved by shareholders of the Fund, it will become
effective upon the closing of the Transaction, which is expected in the third
quarter of 2006.
The Boards discussed the New Investment Advisory Agreements at telephonic and
in-person meetings held during April and May 2006. Each Board, including the
independent directors, approved the applicable New Investment Advisory
Agreement at a meeting held on May 8, 2006.
To assist each Board in its consideration of the New Investment Advisory
Agreement, BlackRock provided materials and information about BlackRock,
including its financial condition and asset management capabilities and
organization, and Merrill Lynch provided materials and information about the
Transaction. Each Fund's independent directors, through their independent
legal counsel, also requested and received additional information from Merrill
Lynch and BlackRock in connection with their consideration of the Fund's New
Investment Advisory Agreement. The additional information was provided in
advance of the May 8, 2006 meetings. In addition, each Fund's independent
directors consulted with their counsel and Fund counsel on numerous occasions,
discussing, among other things, the legal standards and certain other
considerations relevant to the directors' deliberations.
At the Board meetings, members of each Fund's Board discussed with Merrill
Lynch management and certain BlackRock representatives the Transaction, its
strategic rationale and BlackRock's general plans and intentions regarding the
Fund. At these Board meetings, representatives of Merrill Lynch and BlackRock
made presentations to and responded to questions from the Boards. The directors
also inquired about the plans for and anticipated roles and responsibilities of
certain employees and officers of the Investment Adviser and certain affiliates
being transferred to BlackRock in connection with the Transaction.
The independent directors also conferred separately and with their counsel
about the Transaction and other matters related to the Transaction on a number
of occasions, including in connection with the April and May 2006 meetings.
After the presentations and after reviewing the written materials provided,
each Fund's independent directors met in executive sessions with their counsel
to consider the Fund's New Investment Advisory Agreement.
In connection with each Board's review of the New Investment Advisory
Agreement, Merrill Lynch and/or BlackRock advised the directors about a
variety of matters. The advice included the following, among other matters:
* that there is not expected to be any diminution in the nature, quality and
extent of services provided to each Fund and its shareholders by BlackRock
Advisors, including compliance services;
* that operation of New BlackRock as an independent investment management
firm will enhance its ability to attract and retain talented professionals;
* that each Fund should benefit from having access to BlackRock's state of
the art technology and risk management analytic tools, including investment
tools, provided under the BlackRock Solutions (R) brand name;
* that BlackRock has no present intention to alter any applicable expense
waivers or reimbursements currently in effect and, while it reserves the
right to do so in the future, it would seek Board approval before making
any changes;
* that under the Transaction Agreement, Merrill Lynch and BlackRock have
agreed to conduct, and use reasonable best efforts to cause their respective
affiliates to conduct, their respective businesses in compliance with the
conditions of Section 15 (f) of the Investment Company Act of 1940 Act (the
"1940 Act") in relation to any public funds advised by BlackRock or the
Investment Adviser (or its affiliates), respectively; and
* that Merrill Lynch and BlackRock would derive benefits from the Transaction
and that, as a result, they have a different financial interest in the
matters that were being considered than do Fund shareholders.
The directors considered the information provided by Merrill Lynch and
BlackRock above, and, among other factors, the following:
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
* the potential benefits to each Fund's shareholders from being part of a
combined fund family with BlackRock-sponsored funds, including possible
economies of scale and access to investment opportunities;
* the reputation, financial strength and resources of BlackRock and its
investment advisory subsidiaries and the anticipated financial strength and
resources of New BlackRock;
* the compliance policies and procedures of BlackRock Advisors;
* the terms and conditions of each New Investment Advisory Agreement,
including the fact that neither Fund's schedule of total advisory fees will
increase by virtue of the Fund's New Investment Advisory Agreement, but
will remain the same;
* that within the past year each Fund's Board performed a full annual review
of the investment advisory agreement currently in effect for the Fund (the
"Current Investment Advisory Agreement") as required by the 1940 Act and
has determined that the Investment Adviser has the capabilities, resources
and personnel necessary to provide the advisory and administrative services
currently provided to the Fund; and that the advisory and/or management
fees paid by the Fund, taking into account any applicable agreed-upon fee
waivers and breakpoints, represent reasonable compensation to the
Investment Adviser in light of the services provided, the costs to the
Investment Adviser of providing those services, economies of scale, the
fees and other expenses paid by similar funds (including information
provided by Lipper, Inc. ["Lipper"]), and such other matters as the
directors have considered relevant in the exercise of their reasonable
judgment (each Board had most recently performed a full annual review of
the Current Investment Advisory Agreement in November 2005); and
* that Merrill Lynch agreed to pay all expenses of each Fund in connection
with the Board's consideration of the New Investment Advisory Agreement and
related agreements and all costs of shareholder approval of the New
Investment Advisory Agreement and as a result the Fund would bear no costs
in obtaining shareholder approval of the New Investment Advisory Agreement.
Certain of these considerations are discussed in more detail below.
In its review of the New Investment Advisory Agreement, each Board assessed
the nature, scope and quality of the services to be provided to the applicable
Fund by the personnel of BlackRock Advisors and its affiliates, including
administrative services, shareholder services, oversight of fund accounting,
marketing services and assistance in meeting legal and regulatory requirements.
In its review of the New Investment Advisory Agreement, each Board also
considered a range of information in connection with its oversight of the
services to be provided by BlackRock Advisors and its affiliates. Among the
matters considered by each Board were: (a) fees (in addition to management
fees) to be paid to BlackRock Advisors and its affiliates by the Fund; (b)
Fund operating expenses paid to third parties; (c) the resources devoted to
and compliance reports relating to the Fund's investment objective, policies
and restrictions, and its compliance with its Code of Ethics and BlackRock
Advisors' compliance policies and procedures; and (d) the nature, cost and
character of non-investment management services to be provided by BlackRock
Advisors and its affiliates.
In the period prior to the Board meeting to consider renewal of the Current
Investment Advisory Agreement, each Board had requested and received materials
specifically relating to the agreement. These materials for each Fund included
(a) information compiled by Lipper on the fees and expenses and the investment
performance of the Fund as compared to a comparable group of funds as
classified by Lipper; (b) information comparing the Fund's market price with
its net asset value per share; (c) a discussion by the Fund's portfolio
management team on investment strategies used by the Fund during its most
recent fiscal year; (d) information on the profitability to the Investment
Adviser of the Fund's Current Investment Advisory Agreement and other payments
received by the Investment Adviser and its affiliates from the Fund; and (e)
information provided by the Investment Adviser concerning services related to
the valuation and pricing of Fund portfolio holdings, the Fund's portfolio
turnover statistics, and direct and indirect benefits to the Investment
Adviser and its affiliates from their relationship with the Fund.
In their deliberations, each Fund's directors considered information received
in connection with their most recent continuation of the Fund's Current
Investment Advisory Agreement, in addition to information provided by BlackRock
and BlackRock Advisors in connection with their evaluation of the terms and
conditions of the Fund's New Investment Advisory Agreement. Neither Fund's
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Disclosure of Investment Advisory Agreement (continued)
directors identified any particular information that was all-important or
controlling, and each director attributed different weights to the various
factors. Each Fund's directors made their determinations separately in respect
of the Fund. The directors of each Fund, including a majority of the
independent directors, concluded that the terms of the Fund's New Investment
Advisory Agreement are appropriate, that the fees to be paid are reasonable in
light of the services to be provided to the Fund, and that the New Investment
Advisory Agreement should be approved and recommended to Fund shareholders.
Nature, Quality and Extent of Services Provided--Each Fund's Board reviewed
the nature, extent and quality of services provided by the Investment Adviser,
including the investment advisory services and the resulting performance of
the Fund, as well as the nature, quality and extent of services expected to be
provided by BlackRock Advisors. Each Fund's Board focused primarily on the
Investment Adviser's advisory services and the Fund's investment performance,
but also considered certain areas in which both the Investment Adviser and the
Fund receive services as part of the Merrill Lynch complex. Each Fund's Board
compared the Fund's performance - both including and excluding the effects of
the Fund's fees and expenses - to the performance of a comparable group of
funds, and the performance of a relevant index or combination of indexes.
While each Board reviews performance data at least quarterly, consistent with
the Investment Adviser's investment goals, the Board will attach more
importance to performance over relatively long periods of time, typically
three to five years.
In evaluating the nature, quality and extent of the services to be provided by
BlackRock Advisors under the New Investment Advisory Agreement, each Fund's
directors considered, among other things, the expected impact of the
Transaction on the operations, facilities, organization and personnel of
BlackRock Advisors and how it would affect the Fund; the ability of BlackRock
Advisors to perform its duties after the Transaction; and any anticipated
changes to the current investment and other practices of the Fund.
Each Fund's directors were given information with respect to the potential
benefits to the Fund and its shareholders from having access to BlackRock's
state of the art technology and risk management analytic tools, including the
investment tools provided under the BlackRock Solutions brand name.
Each Fund's directors were advised that, as a result of Merrill Lynch's equity
interest in BlackRock after the Transaction, the Fund will continue to be
subject to restrictions concerning certain transactions involving Merrill
Lynch affiliates (for example, transactions with a Merrill Lynch broker-dealer
acting as principal) absent revised or new regulatory relief. Each Fund's
directors were advised that a revision of existing regulatory relief with
respect to these restrictions was being sought from the Securities and
Exchange Commission and were advised of the possibility of receipt of such
revised regulatory relief. There can be no assurance that such relief will be
obtained.
Based on their review of the materials provided and the assurances they had
received from the management of Merrill Lynch and of BlackRock, each Fund's
directors determined that the nature and quality of services to be provided to
the Fund under the New Investment Advisory Agreement were expected to be as
good or better than that provided under the Fund's Current Investment Advisory
Agreement. It was noted, however, that it is expected that there will be
changes in personnel following the Transaction and the combination of the
operations of the Investment Adviser and its affiliates with those of
BlackRock. Each Fund's directors noted that if current portfolio managers or
other personnel cease to be available, the Board would consider all available
options, which could include seeking the investment advisory or other services
of BlackRock affiliates. Accordingly, each Fund's directors concluded that,
overall, they were satisfied at the present time with assurances from
BlackRock and BlackRock Advisors as to the expected nature, extent and quality
of the services to be provided to the Fund under its New Investment Advisory
Agreement.
Costs of Services Provided and Profitability--It was noted that, in conjunction
with the recent review of the Current Investment Advisory Agreement, each
Fund's directors had received, among other things, a report from Lipper
comparing the Fund's fees, expenses and performance to those of a peer group
selected by Lipper, and information as to the fees charged by the Investment
Adviser or its affiliates to other registered investment company clients for
investment management services. Each Fund's Board reviewed the Fund's
contractual management fee rate and actual management fee rate as a percentage
of total assets at common asset levels - the actual rate includes advisory fees
and the effects of any fee waivers - compared to the other funds in its Lipper
category. Each Fund's Board also compared the Fund's total expenses to those of
other comparable funds. The information showed that each Fund had fees and
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
expenses within the range of fees and expenses of comparable funds. Each
Fund's Board considered the services to be provided by and the fees to be
charged by BlackRock Advisors to other funds with similar investment mandates
and noted that the fees charged by BlackRock Advisors in those cases,
including fee waivers and expense reimbursements, were generally comparable to
those being charged to the Fund. Each Fund's Board also noted that, as a
general matter, according to the information provided by BlackRock, fees
charged to institutional clients were lower than the fees charged to the Fund,
but BlackRock Advisors provided less extensive services to such clients. Each
Fund's Board concluded that the Fund's management fee and fee rate and overall
expense ratio are reasonable compared to those of other comparable funds.
In evaluating the costs of the services to be provided by BlackRock Advisors
under the New Investment Advisory Agreement, each Fund's directors considered,
among other things, whether advisory fees or other expenses would change as a
result of the Transaction. Based on their review of the materials provided and
the fact that each New Investment Advisory Agreement is substantially similar
to the applicable Current Investment Advisory Agreement in all material
respects, including the rate of compensation, each Fund's directors determined
that the Transaction should not increase the total fees payable, including any
fee waivers and expense reimbursements, for advisory and administrative
services. Each Fund's directors noted that it was not possible to predict with
certainty New BlackRock's future profitability from its relationship with the
Fund.
Each Fund's directors discussed with BlackRock Advisors its general
methodology to be used in determining New BlackRock's profitability with
respect to its relationship with the Fund. The directors noted that they
expect to receive profitability information from New BlackRock on at least an
annual basis and thus be in a position to evaluate whether any adjustments in
Fund fees and/or fee breakpoints would be appropriate.
Fees and Economies of Scale--Each Fund's Board considered the extent to which
economies of scale might be realized as the assets of the Fund increase and
whether there should be changes in the management fee rate or structure in
order to enable the Fund to participate in these economies of scale. Each
Fund's Board determined that changes were not currently necessary and that the
Fund appropriately participated in these economies of scale.
In reviewing the Transaction, the directors considered, among other things,
whether advisory fees or other expenses would change as a result of the
Transaction. Based on the fact that each New Investment Advisory Agreement is
substantially similar to the applicable Current Investment Advisory Agreement
in all material respects, including the rate of compensation, each Fund's
directors determined that as a result of the Transaction, the Fund's total
advisory fees would be no higher than the fees under its Current Investment
Advisory Agreement. Each Fund's directors noted that in conjunction with their
most recent deliberations concerning the Current Investment Advisory
Agreement, the directors had determined that the total fees for advisory and
administrative services for the Fund were reasonable in light of the services
provided. It was noted that in conjunction with the recent review of the
Current Investment Advisory Agreement, each Fund's directors had received,
among other things, a report from Lipper comparing the Fund's fees, expenses
and performance to those of a peer group selected by Lipper, and information
as to the fees charged by the Investment Adviser or its affiliates to other
registered investment company clients for investment management services. Each
Fund's directors concluded that, because the rates for advisory fees for the
Fund would be no higher than its current fee rates, the proposed management
fee structure, including any fee waivers, was reasonable and that no
additional changes were currently necessary.
Fall-Out Benefits--In evaluating the fall-out benefits to be received by
BlackRock Advisors under the New Investment Advisory Agreement, each Fund's
directors considered whether the Transaction would have an impact on the fall-
out benefits received by the Investment Adviser by virtue of the Current
Investment Advisory Agreement. Based on their review of the materials
provided, including materials received in connection with their most recent
approval or continuance of the Current Investment Advisory Agreement, and
their discussions with management of the Investment Adviser and BlackRock,
each Fund's directors determined that those benefits could include increased
ability for BlackRock to distribute shares of its funds and other investment
products. The directors noted that any such benefits were difficult to
quantify with certainty at this time, and indicated that they would continue
to evaluate them going forward.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Disclosure of Investment Advisory Agreement (concluded)
Investment Performance--Each Fund's directors considered investment
performance for the Fund. Each Fund's directors compared the Fund's
performance - both including and excluding the effects of the Fund's fees and
expenses - to the performance of a comparable group of funds, and the
performance of a relevant index or combination of indexes. The comparative
information received from Lipper showed each Fund's performance at various
levels within the range of performance of comparable funds over different time
periods. While each Board reviews performance data at least quarterly,
consistent with the Investment Adviser's investment goals, the Board will
attach more importance over relatively long periods of time, typically three
to five years. Each Fund's directors believed the Fund's performance was
satisfactory. Also, the directors took into account the investment performance
of funds currently advised by BlackRock Advisors. Each Board considered
comparative information from Lipper which showed that the performance of the
funds advised by BlackRock Advisors was within the range of performance of
comparable funds over different time periods. Each Fund's Board noted
BlackRock's considerable investment management experience and capabilities,
but were unable to predict what effect, if any, consummation of the
Transaction would have on the future performance of the Fund.
Conclusion--After the independent directors of each Fund deliberated in
executive session, the Fund's entire Board, including the independent
directors, approved the Fund's New Investment Advisory Agreement, concluding
that the advisory fee rate was reasonable in relation to the services provided
and that the New Investment Advisory Agreement was in the best interests of
the Fund's shareholders. In approving the New Investment Advisory Agreement,
each Board noted that it anticipated reviewing the continuance of the
agreement in advance of the expiration of the initial two-year period.
Contingent BlackRock Sub-Advisory Agreement--Matters Considered by the Boards
At the telephonic and in-person meetings held during April and May 2006 at
which each Board of Directors discussed and approved the New Investment
Advisory Agreement, the Board, including the independent directors, also
approved a contingent sub-advisory agreement (each a "Contingent Sub-Advisory
Agreement") between the Investment Adviser and BlackRock Advisors (the
"BlackRock Sub-Adviser"). Each Fund's Contingent Sub-Advisory Agreement is
intended to ensure that the Fund operates with efficient portfolio management
services until the closing of the Transaction, in the event that the Fund's
Board deems it necessary and in the best interests of the Fund and its
shareholders that the BlackRock Sub-Adviser assist in managing the operations
of the Fund during the interim period until the closing of the Transaction. If
each Fund's shareholders approve the Contingent Sub-Advisory Agreement, it
will take effect only upon recommendation from the Investment Adviser and upon
subsequent approval of the Fund's Board in the period up to the closing of the
Transaction. The effectiveness of each Fund's Contingent Sub-Advisory
Agreement, therefore, would be contingent on further Board approval after
shareholders approve it. Pursuant to each Contingent Sub-Advisory Agreement,
the BlackRock Sub-Adviser would receive a monthly fee from the Investment
Adviser equal to 50% of the advisory fee received by the Investment Adviser.
The Investment Adviser would pay the BlackRock Sub-Adviser out of its own
resources. There would be no increase in either Fund's expenses as a result of
the Contingent Sub-Advisory Agreement.
In making its approval, each Board considered the Contingent Sub-Advisory
Agreement in conjunction with the New Investment Advisory Agreement and
reviewed the same information and factors discussed above. Each Fund's Board
also considered in conjunction with the Contingent Sub-Advisory Agreement the
necessity of ensuring that the Fund operates with effective management
services until the closing of the Transaction. In reviewing the sub-advisory
fee rate provided in each Fund's Contingent Sub-Advisory Agreement, the Fund's
Board took note of the fact that both the Investment Adviser and the BlackRock
Sub-Adviser would have significant responsibilities under their respective
advisory agreements. The Investment Adviser would remain responsible for
oversight of each Fund's operations and administration and the BlackRock Sub-
Adviser would provide advisory services to the Fund under the Contingent Sub-
Advisory Agreement. Each Fund's Board also took into account the expected
short duration of the term of any Contingent Sub-Advisory Agreement and the
fact that total advisory fees paid by the Fund would not increase as a result
of the Contingent Sub-Advisory Agreement. Under all of the circumstances, each
Fund's Board concluded that it was a reasonable allocation of fees for the
BlackRock Sub-Adviser to receive 50% of the advisory fee paid by the Fund to
the Investment Adviser.
After the independent directors of each Fund deliberated in executive session,
the Fund's entire Board, including the independent directors, approved the
applicable Contingent Sub-Advisory Agreement, concluding that the advisory fee
was reasonable in relation to the services provided and that the Contingent
Sub-Advisory Agreement was in the best interests of the Fund's shareholders.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
New BlackRock Sub-Advisory Agreement--Matters Considered by the Boards
At an in-person meeting held on August 16 - 17, 2006, each Fund's Board,
including the independent directors, discussed and approved the Fund's sub-
advisory agreement between BlackRock Advisors and its affiliate, BlackRock
Investment Management, LLC (the "Sub-Adviser") (each, a "BlackRock Sub-
Advisory Agreement"). Each Fund's BlackRock Sub-Advisory Agreement became
effective on September 29, 2006, at the same time the Fund's New Investment
Advisory Agreement with BlackRock Advisors (which had been approved by the
Fund's shareholders) became effective.
Pursuant to each Fund's BlackRock Sub-Advisory Agreement, the Sub-Adviser
receives a monthly fee from BlackRock Advisors equal to 59% of the advisory
fee received by BlackRock Advisors from the Fund. BlackRock Advisors pays the
Sub-Adviser out of its own resources, and there is no increase in the expenses
of either Fund as a result of the Fund's BlackRock Sub-Advisory Agreement.
In approving the Fund's BlackRock Sub-Advisory Agreement at the August in-
person meeting, each Fund's Board reviewed its considerations in connection
with its approval of the Fund's New Investment Advisory Agreement in May 2006.
Each Fund's Board relied on the same information and considered the same
factors as those discussed above in connection with the approval of the Fund's
New Investment Advisory Agreement. In reviewing the sub-advisory fee rate
provided for in each Fund's BlackRock Sub-Advisory Agreement, the Fund's Board
noted the fact that both BlackRock Advisors and the Sub-Adviser have
significant responsibilities under their respective advisory agreements. Under
the New Investment Advisory Agreement, BlackRock Advisors remains responsible
for the overall management of each Fund and for oversight of the Fund's
operations and administration. Under the BlackRock Sub-Advisory Agreement, the
Sub-Adviser provides advisory services to the Fund and is responsible for the
day-to-day management of the Fund's portfolio. Each Fund's Board also took
into account the fact that there is no increase in total advisory fees paid by
the Fund as a result of the Fund's BlackRock Sub-Advisory Agreement. Based on
its considerations, each Fund's Board concluded that it was a reasonable
allocation of fees for the Sub-Adviser to receive 59% of the advisory fee paid
by the Fund to BlackRock Advisors.
After each Fund's independent directors deliberated in executive session, each
Fund's entire Board, including the independent directors, approved the Fund's
BlackRock Sub-Advisory Agreement, concluding that the sub-advisory fee was
reasonable in relation to the services provided and that the BlackRock Sub-
Advisory Agreement was in the best interests of the Fund's shareholders.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Proxy Results BlackRock Muni Intermediate Duration Fund, Inc.
During the six-month period ended November 30, 2006, BlackRock Muni
Intermediate Duration Fund, Inc.'s Common Stock and Auction Market Preferred
Stock shareholders voted on the following proposal, which was approved at an
annual shareholders' meeting on August 15, 2006. A description of the proposal
and number of shares voted were as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Directors: Robert C. Doll, Jr. 23,873,613 1,197,557
John Francis O'Brien 23,857,478 1,213,692
David H. Walsh 23,873,966 1,197,204
During the six-month period ended November 30, 2006, BlackRock Muni
Intermediate Duration Fund, Inc.'s Auction Market Preferred Stock shareholders
(Series F7, M7, T7, TH7, W7 & TH28) voted on the following proposal, which was
approved at an annual shareholders' meeting on August 15, 2006. A description
of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Directors: Donald W. Burton and Fred G. Weiss 7,402 58
During the six-month period ended November 30, 2006, BlackRock Muni
Intermediate Duration Fund, Inc.'s shareholders voted on the following
proposal, which were approved at an annual shareholders' meeting on August 15,
2006. A description of the proposals and number of shares voted were as
follows:
Shares Voted Shares Voted Shares Voted
For Against Abstain
To approve a new investment advisory agreement with
BlackRock Advisors, Inc. 19,510,974 528,170 1,094,407
To approve a contingent subadvisory agreement with
BlackRock Advisors, Inc. 19,434,119 572,674 1,126,758
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Proxy Results BlackRock Muni New York Intermediate Duration Fund, Inc.
During the six-month period ended November 30, 2006, BlackRock Muni New York
Intermediate Duration Fund, Inc.'s Common Stock and Auction Market Preferred
Stock shareholders voted on the following proposal, which was approved at an
annual shareholders' meeting on August 15, 2006. A description of the proposal
and number of shares voted were as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Directors: Robert C. Doll, Jr. 2,433,532 303,880
John Francis O'Brien 2,433,532 303,880
David H. Walsh 2,425,352 312,060
During the six-month period ended November 30, 2006, BlackRock Muni New York
Intermediate Duration Fund, Inc.'s Auction Market Preferred Stock shareholders
(Series F7) voted on the following proposal, which was approved at an annual
shareholders' meeting on August 15, 2006. A description of the proposal and
number of shares voted were as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Directors: Donald W. Burton and Fred G. Weiss 488 12
During the six-month period ended November 30, 2006, BlackRock Muni New York
Intermediate Duration Fund, Inc.'s shareholders voted on the following
proposal, which were approved at an annual shareholders' meeting on August 15,
2006. A description of the proposals and number of shares voted were as
follows:
Shares Voted Shares Voted Shares Voted
For Against Abstain
To approve a new investment advisory agreement with
BlackRock Advisors, Inc. 1,842,047 108,841 94,240
To approve a contingent subadvisory agreement with
BlackRock Advisors, Inc. 1,842,706 107,208 95,214
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former
fund investors and individual clients (collectively, "Clients") and to
safeguarding their nonpublic personal information. The following information
is provided to help you understand what personal information BlackRock
collects, how we protect that information and why in certain cases we share
such information with select parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.
BlackRock obtains or verifies personal nonpublic information from and about
you from different sources, including the following: (i) information we
receive from you or, if applicable, your financial intermediary, on
applications, forms or other documents; (ii) information about your
transactions with us, our affiliates, or others; (iii) information we receive
from a consumer reporting agency; and (iv) from visits to our Web sites.
BlackRock does not sell or disclose to nonaffiliated third parties any
nonpublic personal information about its Clients, except as permitted by law
or as is necessary to service Client accounts. These nonaffiliated third
parties are required to protect the confidentiality and security of this
information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services that
may be of interest to you. In addition, BlackRock restricts access to
nonpublic personal information about its Clients to those BlackRock employees
with a legitimate business need for the information. BlackRock maintains
physical, electronic and procedural safeguards that are designed to protect
the nonpublic personal information of its Clients, including procedures
relating to the proper storage and disposal of such information.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Availability of Quarterly Schedule of Investments
The Funds file their complete schedules of portfolio holdings with the
Securities and Exchange Commission ("SEC") for the first and third quarters
of each fiscal year on Form N-Q. The Funds' Forms N-Q are available on the
SEC's Web site at http://www.sec.gov. The Funds' Forms N-Q may also be
reviewed and copied at the SEC's Public Reference Room in Washington, DC.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330.
Electronic Delivery
Electronic copies of most financial reports and prospectuses are available on
the Funds' Web site. Shareholders can sign up for e-mail notifications of
quarterly statements, annual and semi-annual reports and prospectuses by
enrolling in the Funds' electronic delivery program.
To enroll:
Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:
Please contact your financial adviser. Please note that not all investment
advisers, banks or brokerages may offer this service.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Officers and Directors
Robert C. Doll, Jr., President and Director
Donald W. Burton, Director
John F. O'Brien, Director
David H. Walsh, Director
Fred G. Weiss, Director
Donald C. Burke, Vice President and Treasurer
John M. Loffredo, Senior Vice President
Timothy T. Browse, Vice President
Jeffrey Hiller, Fund Chief Compliance Officer
Alice A. Pellegrino, Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agents
Common Stock:
Computershare Trust Company, N.A.
P.O. Box 43010
Providence, RI 02940-3010
Preferred Stock:
The Bank of New York
101 Barclay Street--7 West
New York, NY 10286
Investment Objectives
NYSE Symbol BlackRock Muni Intermediate Duration Fund, Inc. seeks to provide
MUI shareholders with high current income exempt from federal income
taxes by investing primarily in a portfolio of municipal
obligations, the interest on which, in the opinion of bond
counsel to the issuer, is exempt from federal income taxes.
NYSE Symbol BlackRock Muni New York Intermediate Duration Fund, Inc. seeks to
MNE provide shareholders with high current income exempt from federal
income taxes and New York State and New York City personal income
taxes by investing primarily in a portfolio of municipal
obligations, the interest on which, in the opinion of bond
counsel to the issuer, is exempt from federal income taxes and
New York State and New York City personal income taxes.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2006
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this semi-
annual report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this semi-
annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable to this semi-
annual report
Item 6 - Schedule of Investments - Not Applicable
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable to this semi-annual
report
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
as of November 30, 2006
(a)(1) BlackRock Muni Intermediate Duration Fund, Inc. is managed by
a team of investment professionals comprised of Theodore R. Jaeckel,
Jr., CFA, Managing Director at BlackRock, and Walter O'Connor,
Managing Director at BlackRock. Each is a member of BlackRock's
municipal tax-exempt management group. Mr. Jaeckel and Mr. O'Connor
are responsible for setting the Fund's overall investment strategy
and overseeing the management of the Fund. Mr. O'Connor is also the
Fund's lead portfolio manager and is responsible for the day-to-day
management of the Fund's portfolio and the selection of its
investments. Mr. Jaeckel has been a member of the Fund's management
team since 2006 and Mr. O'Connor has been the Fund's portfolio
manager since 2006.
Mr. Jaeckel joined BlackRock in 2006. Prior to joining BlackRock, he
was a Managing Director (Municipal Tax-Exempt Fund Management) of
Merrill Lynch Investment Managers, L.P. ("MLIM") from 2005 to 2006
and a Director of MLIM from 1997 to 2005. He has been a portfolio
manager with BlackRock or MLIM since 1991.
Mr. O'Connor joined BlackRock in 2006. Prior to joining BlackRock,
he was a Managing Director (Municipal Tax-Exempt Fund Management) of
MLIM from 2003 to 2006 and was a Director of MLIM from 1997 to 2002.
He has been a portfolio manager with BlackRock or MLIM since 1991.
(a)(2) As of November 30, 2006:
(iii) Number of Other Accounts and
(ii) Number of Other Accounts Managed Assets for Which Advisory Fee is
and Assets by Account Type Performance-Based
Other Other
(i) Name of Registered Other Pooled Registered Other Pooled
Portfolio Investment Investment Other Investment Investment Other
Manager Companies Vehicles Accounts Companies Vehicles Accounts
Theodore R.
Jaeckel, Jr. 82 0 0 0 0 0
$ 28,769,425,837 $ 0 $ 0 $ 0 $ 0 $ 0
Walter
O'Connor 82 0 0 0 0 0
$ 28,769,425,837 $ 0 $ 0 $ 0 $ 0 $ 0
(iv) Potential Material Conflicts of Interest
BlackRock has built a professional working environment, firm-wide
compliance culture and compliance procedures and systems designed to
protect against potential incentives that may favor one account over
another. BlackRock has adopted policies and procedures that address
the allocation of investment opportunities, execution of portfolio
transactions, personal trading by employees and other potential
conflicts of interest that are designed to ensure that all client
accounts are treated equitably over time. Nevertheless, BlackRock
furnishes investment management and advisory services to numerous
clients in addition to the Fund, and BlackRock may, consistent with
applicable law, make investment recommendations to other clients or
accounts (including accounts which are hedge funds or have
performance or higher fees paid to BlackRock, or in which portfolio
managers have a personal interest in the receipt of such fees),
which may be the same as or different from those made to the Fund.
In addition, BlackRock, its affiliates and any officer, director,
stockholder or employee may or may not have an interest in the
securities whose purchase and sale BlackRock recommends to the Fund.
BlackRock, or any of its affiliates, or any officer, director,
stockholder, employee or any member of their families may take
different actions than those recommended to the Fund by BlackRock
with respect to the same securities. Moreover, BlackRock may refrain
from rendering any advice or services concerning securities of
companies of which any of BlackRock's (or its affiliates') officers,
directors or employees are directors or officers, or companies as to
which BlackRock or any of its affiliates or the officers, directors
and employees of any of them has any substantial economic interest
or possesses material non-public information. Each portfolio manager
also may manage accounts whose investment strategies may at times be
opposed to the strategy utilized for the Fund. In this connection,
it should be noted that certain portfolio managers currently manage
certain accounts that are subject to performance fees. In addition,
certain portfolio managers assist in managing certain hedge funds
and may be entitled to receive a portion of any incentive fees
earned on such funds and a portion of such incentive fees may be
voluntarily or involuntarily deferred. Additional portfolio managers
may in the future manage other such accounts or funds and may be
entitled to receive incentive fees.
As a fiduciary, BlackRock owes a duty of loyalty to its clients and
must treat each client fairly. When BlackRock purchases or sells
securities for more than one account, the trades must be allocated
in a manner consistent with its fiduciary duties. BlackRock attempts
to allocate investments in a fair and equitable manner among client
accounts, with no account receiving preferential treatment. To this
end, BlackRock has adopted a policy that is intended to ensure that
investment opportunities are allocated fairly and equitably among
client accounts over time. This policy also seeks to achieve
reasonable efficiency in client transactions and provide BlackRock
with sufficient flexibility to allocate investments in a manner that
is consistent with the particular investment discipline and client
base.
(a)(3) As of November 30, 2006:
Portfolio Manager Compensation
The portfolio manager compensation program of BlackRock and its affiliates,
including the Investment Adviser, is critical to BlackRock's ability to attract
and retain the most talented asset management professionals. This program
ensures that compensation is aligned with maximizing investment returns and it
provides a competitive pay opportunity for competitive performance.
Compensation Program
The elements of total compensation for certain BlackRock and its affiliates
portfolio managers are a fixed base salary, annual performance-based cash and
stock compensation (cash and stock bonus) and other benefits. BlackRock has
balanced these components of pay to provide portfolio managers with a powerful
incentive to achieve consistently superior investment performance. By design,
portfolio manager compensation levels fluctuate--both up and down--with the
relative investment performance of the portfolios that they manage.
Base Salary
Under the BlackRock approach, like that of many asset management firms,
base salaries represent a relatively small portion of a portfolio manager's
total compensation. This approach serves to enhance the motivational value of
the performance-based (and therefore variable) compensation elements of the
compensation program.
Performance-Based Compensation
BlackRock believes that the best interests of investors are served by
recruiting and retaining exceptional asset management talent and managing their
compensation within a consistent and disciplined framework that emphasizes pay
for performance in the context of an intensely competitive market for talent.
To that end, certain BlackRock and its affiliates portfolio manager incentive
compensation is based on a formulaic compensation program.
BlackRock's formulaic portfolio manager compensation program includes:
investment performance relative to a subset of general closed-end, leveraged,
municipal debt funds over 1-, 3- and 5-year performance periods and a measure
of operational efficiency. Portfolio managers are compensated based on the pre-
tax performance of the products they manage. If a portfolio manager's tenure is
less than 5-years, performance periods will reflect time in position. Portfolio
managers are compensated based on the products they manage. A discretionary
element of portfolio manager compensation may include consideration of:
financial results, expense control, profit margins, strategic planning and
implementation, quality of client service, market share, corporate reputation,
capital allocation, compliance and risk control, leadership, workforce
diversity, supervision, technology and innovation. All factors are considered
collectively by BlackRock management.
Cash Bonus
Performance-based compensation is distributed to portfolio managers in a
combination of cash and stock. Typically, the cash bonus, when combined with
base salary, represents more than 60% of total compensation for portfolio
managers.
Stock Bonus
A portion of the dollar value of the total annual performance-based bonus
is paid in restricted shares of BlackRock stock. Paying a portion of annual
bonuses in stock puts compensation earned by a portfolio manager for a given
year "at risk" based on the Company's ability to sustain and improve its
performance over future periods.
The ultimate value of stock bonuses is dependent on future BlackRock stock
price performance. As such, the stock bonus aligns each portfolio manager's
financial interests with those of BlackRock shareholders and encourages a
balance between short-term goals and long-term strategic objectives. Management
strongly believes that providing a significant portion of competitive
performance-based compensation in stock is in the best interests of investors
and shareholders. This approach ensures that portfolio managers participate as
shareholders in both the "downside risk" and "upside opportunity" of the
Company's performance. Portfolio managers therefore have a direct incentive to
protect BlackRock's reputation for integrity.
Other Compensation Programs
Portfolio managers who meet relative investment performance and financial
management objectives during a performance year are eligible to participate in
a deferred cash program. Awards under this program are in the form of deferred
cash that may be benchmarked to a menu of certain BlackRock mutual funds
(including their own funds) during a five-year vesting period. The deferred
cash program aligns the interests of participating portfolio managers with the
investment results of BlackRock products and promotes continuity of successful
portfolio management teams.
Other Benefits
Portfolio managers are also eligible to participate in broad-based plans
offered generally to BlackRock employees, including broad-based retirement,
401(k), health, and other employee benefit plans.
(a)(4) Beneficial Ownership of Securities. As of November 30, 2006,
Messrs. Jaeckel and O'Connor do not beneficially own any stock
issued by the Fund.
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - Not Applicable
Item 11 - Controls and Procedures
11(a) - The Registrant's principal executive and principal financial
officers have evaluated the Registrant's disclosure controls and
procedures, including internal control over financial reporting,
within 90 days of this filing. Such principal officers have
concluded that as of January 26, 2007 the Registrant's disclosure
controls and procedures were effective in design and operation to
reasonably ensure that information required to be disclosed by the
Registrant in this Form N-CSR was recorded, processed, summarized,
and reported within the required time periods, and were sufficient
to form the basis of the certifications required by Rule 30a-2 of
the Investment Company Act of 1940, as amended. Prior to reaching
that conclusion, such principal officers had become aware of matters
relating to the Registrant's participation in certain inverse
floater structures that necessitated adjustments to financial
information included in Item 1 of this filing. As a result,
management of the Registrant had reevaluated certain disclosure
controls and procedures determined not to be effective, as discussed
more fully below.
Management of the Registrant is responsible for establishing and
maintaining effective internal control over financial reporting. In
fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related
costs of controls. The Registrant's internal control over financial
reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with
U.S. generally accepted accounting principles. Such internal control
includes policies and procedures that provide reasonable assurance
regarding prevention or timely detection of unauthorized
acquisition, use or disposition of a registrant's assets that could
have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to
the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
A control deficiency exists when the design or operation of a
control does not allow management or employees, in the normal course
of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a
control deficiency, or combination of control deficiencies, that
adversely affects the Registrant's ability to initiate, authorize,
record, process or report financial data reliably in accordance with
generally accepted accounting principles such that there is more
than a remote likelihood that a misstatement of the Registrant's
annual or interim financial statements that is more than
inconsequential will not be prevented or detected. A material
weakness is a significant deficiency, or combination of significant
deficiencies, that results in more than a remote likelihood that a
material misstatement of the annual or interim financial statements
will not be prevented or detected.
Prior to the filing of the Registrant's Form N-CSR, the Registrant
identified the following control deficiency, that was determined to
be a material weakness, as defined above, in the Registrant's
internal control over financial reporting at November 30, 2006. The
Registrant's controls related to the review and analysis of relevant
terms and conditions of transfers of certain assets pertaining to
inverse floater structures were not operating effectively to
appropriately determine whether the transfers of assets qualified
for sale accounting under the provisions of Statement of Financial
Accounting Standards No. 140, "Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities"
("SFAS 140"). As a result, these controls did not detect that
certain transfers were not appropriately recorded as borrowings.
Accordingly, the Registrant's financial statements as of and for the
period ended November 30, 2006, including prior periods where
applicable, were adjusted prior to being issued to appropriately
reflect transfers of such securities as secured borrowings and to
report the related income and expense. These adjustments had no
impact on net assets, net asset value per share or total return.
Prior to the evaluation of the design and operation of the
Registrant's disclosure controls and procedures at January 26, 2007,
the Registrant's disclosure controls and procedures were modified to
enhance the review and analysis of the relevant terms and conditions
of transfers of securities in connection with inverse floater
structures in light of SFAS 140.
11(b) - There have been no changes in the Registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the
Investment Company Act of 1940, as amended) that occurred during the
second half of the Registrant's fiscal year that have materially
affected, or are reasonably likely to materially affect, the
Registrant's internal control over financial reporting. However, as
discussed above, subsequent to November 30, 2006, the Registrant has
enhanced controls related to the application of SFAS 140.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - 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 Muni Intermediate Duration Fund, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
BlackRock Muni Intermediate Duration Fund, Inc.
Date: January 29, 2007
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/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
BlackRock Muni Intermediate Duration Fund, Inc.
Date: January 29, 2007
By: /s/ Donald C. Burke
-----------------------
Donald C. Burke,
Chief Financial Officer of
BlackRock Muni Intermediate Duration Fund, Inc.
Date: January 29, 2007