UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-5769
Van Kampen High Income Trust II
(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas, New York, New York 10020
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 12/31
Date of reporting period: 9/30/06
Item 1. Schedule of Investments.
The Trust's schedule of investments as of the close of the reporting period
prepared pursuant to Rule 12-12 of Regulation S-X is as follows:
VAN KAMPEN HIGH INCOME TRUST II
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 2006 (UNAUDITED)
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
Corporate Bonds 170.1%
AEROSPACE 2.7%
$ 1,005 Hexcel Corp. 6.750% 02/01/15 $ 964,800
1,175 K & F Acquisition, Inc. 7.750 11/15/14 1,183,812
---------------
2,148,612
---------------
BROADCASTING 2.1%
835 Lin Television Corp. 6.500 05/15/13 782,812
335 Lin Television Corp., Ser B 6.500 05/15/13 314,062
515 Salem Communications Corp. 7.750 12/15/10 521,437
---------------
1,618,311
---------------
CABLE 9.9%
1,175 Cablevision Systems Corp. (Floating Rate) 9.620 04/01/09 1,255,781
410 CCH I LLC 11.000 10/01/15 375,150
495 Echostar DBS Corp. 5.750 10/01/08 491,906
1,740 Echostar DBS Corp. 6.375 10/01/11 1,698,675
785 Echostar DBS Corp. 6.625 10/01/14 748,694
80 Intelsat Bermuda Ltd. (Bermuda) 8.250 01/15/13 81,400
2,195 Intelsat Bermuda Ltd. (Floating Rate) (Bermuda) 10.484 01/15/12 2,236,156
145 NTL Cable Plc (United Kingdom) 8.750 04/15/14 151,162
100 NTL Cable Plc (United Kingdom) 9.125 08/15/16 103,750
693 PanAmSat Corp. 9.000 08/15/14 718,987
---------------
7,861,661
---------------
CHEMICALS 10.4%
1,070 Equistar Chemicals LP 10.125 09/01/08 1,138,212
600 Equistar Chemicals LP 10.625 05/01/11 646,500
740 Innophos, Inc. 8.875 08/15/14 738,150
380 Koppers, Inc. 9.875 10/15/13 413,250
1,350 Lyondell Chemical Co. 10.500 06/01/13 1,491,750
905 Millennium America, Inc. 9.250 06/15/08 936,675
1,450 Nalco Co. 7.750 11/15/11 1,486,250
762 Rockwood Specialties Group, Inc. 10.625 05/15/11 819,150
610 Westlake Chemicals Corp. 6.625 01/15/16 582,550
---------------
8,252,487
---------------
CONSUMER PRODUCTS 6.4%
1,200 Case New Holland, Inc. 7.125 03/01/14 1,210,500
365 Oxford Industrials, Inc. 8.875 06/01/11 374,125
2,150 Phillips Van-Heusen Corp. 7.250 02/15/11 2,182,250
740 Steinway Musical Instruments, Inc. (a) 7.000 03/01/14 728,900
544 Tempur Pedic, Inc. 10.250 08/15/10 573,240
---------------
5,069,015
---------------
DIVERSIFIED MEDIA 7.6%
740 AMC Entertainment, Inc. (Floating Rate) 9.655 08/15/10 767,750
1,425 CanWest Media, Inc. (Canada) 8.000 09/15/12 1,414,312
685 Dex Media West Finance Corp. 9.875 08/15/13 743,225
685 Houghton Mifflin Co. 8.250 02/01/11 707,262
760 Houghton Mifflin Co. 9.875 02/01/13 807,500
205 Interpublic Group Cos., Inc. 5.400 11/15/09 194,750
475 Interpublic Group Cos., Inc. 7.250 08/15/11 458,375
940 Quebecor World Cap Corp. (Canada) (a) 8.750 03/15/16 909,450
---------------
6,002,624
---------------
ENERGY 14.3%
1,440 CHC Helicopter Corp. (Canada) 7.375 05/01/14 1,364,400
1,825 Chesapeake Energy Corp. 6.625 01/15/16 1,770,250
350 Chesapeake Energy Corp. 7.500 09/15/13 357,000
330 Compagnie Generale de Geophysique, SA (France) 7.500 05/15/15 328,350
1,500 Frontier Oil Corp. 6.625 10/01/11 1,507,500
160 Hanover Compressor Co. 8.625 12/15/10 167,200
670 Hanover Compressor Co. 9.000 06/01/14 713,550
288 Hanover Equipment Trust 8.500 09/01/08 293,040
280 Hanover Equipment Trust 8.750 09/01/11 292,600
1,250 Hilcorp Energy Finance Corp. (a) 7.750 11/01/15 1,215,625
467 Hilcorp Energy Finance Corp. (a) 10.500 09/01/10 504,944
1,100 Kinder Morgan, Inc. 6.500 09/01/12 1,102,235
328 Magnum Hunter Resources, Inc. 9.600 03/15/12 347,680
650 Pacific Energy Partners 7.125 06/15/14 666,250
750 Pogo Producing Co. 6.875 10/01/17 719,062
---------------
11,349,686
---------------
FINANCIAL 1.9%
1,455 Residential Capital Corp. 6.375 06/30/10 1,473,349
---------------
FOOD & DRUG 3.5%
1,070 Albertson's, Inc. 7.250 05/01/13 1,063,040
405 Albertson's, Inc. 7.500 02/15/11 414,643
1,200 Delhaize America, Inc. 8.125 04/15/11 1,293,946
---------------
2,771,629
---------------
FOOD & TOBACCO 13.4%
1,300 Constellation Brands, Inc. 8.000 02/15/08 1,335,750
595 Michael Foods, Inc. 8.000 11/15/13 609,875
930 Pilgrim's Pride Corp. 9.250 11/15/13 957,900
1,635 Pilgrim's Pride Corp. 9.625 09/15/11 1,724,925
1,445 RJ Reynolds Tobacco Holdings, Inc. (a) 6.500 07/15/10 1,465,639
685 Smithfield Foods, Inc. 7.000 08/01/11 693,562
380 Smithfield Foods, Inc. 7.625 02/15/08 387,600
1,810 Smithfield Foods, Inc. 8.000 10/15/09 1,900,500
1,500 Tyson Foods, Inc. 6.850 04/01/16 1,547,167
---------------
10,622,918
---------------
FOREST PRODUCTS 6.0%
1,270 Crown Americas LLC 7.625 11/15/13 1,292,225
1,000 Graphic Packaging International, Inc. 9.500 08/15/13 1,027,500
2,083 Owens-Brockway Glass Containers, Inc. 8.875 02/15/09 2,150,697
320 P.H. Glatfelter Co. (a) 7.125 05/01/16 313,628
---------------
4,784,050
---------------
GAMING & LEISURE 14.6%
750 Caesars Entertainment, Inc. 8.875 09/15/08 787,500
965 Host Marriott LP 6.375 03/15/15 940,875
1,135 Host Marriott LP 7.125 11/01/13 1,154,863
1,475 Isle of Capri Casinos, Inc. 7.000 03/01/14 1,408,625
1,370 Las Vegas Sands Corp. 6.375 02/15/15 1,292,938
265 MGM Mirage, Inc. 5.875 02/27/14 246,781
2,420 MGM Mirage, Inc. 6.000 10/01/09 2,401,850
1,510 Mohegan Tribal Gaming Authority 7.125 08/15/14 1,510,000
1,160 Station Casinos, Inc. 6.000 04/01/12 1,125,200
175 Station Casinos, Inc. 6.875 03/01/16 164,938
490 Station Casinos, Inc. 7.750 08/15/16 510,825
---------------
11,544,395
---------------
HEALTHCARE 20.1%
1,115 Amerisourcebergen Corp. 5.625 09/15/12 1,101,564
1,510 Community Health Systems, Inc. 6.500 12/15/12 1,451,488
1,525 Davita, Inc. 6.625 03/15/13 1,496,406
1,985 Extendicare Health Services, Inc. 6.875 05/01/14 2,133,875
1,485 Fisher Scientific International, Inc. 6.125 07/01/15 1,481,288
97 Fresenius Medical Care Capital Trust II 7.875 02/01/08 989,400
965 Fresenius Medical Care Capital Trust IV 7.875 06/15/11 995,156
595 HCA, Inc. 5.750 03/15/14 468,563
105 HCA, Inc. 6.300 10/01/12 89,119
895 HCA, Inc. 6.375 01/15/15 724,950
810 HCA, Inc. 6.500 02/15/16 652,050
882 HCA, Inc. 8.750 09/01/10 893,025
735 Omnicare, Inc. 6.750 12/15/13 718,463
750 Res-Care, Inc. 7.750 10/15/13 751,875
575 Tenet Healthcare Corp. 9.875 07/01/14 575,719
1,405 Ventas Realty LP 6.750 06/01/10 1,436,613
---------------
15,959,554
---------------
HOUSING 1.7%
1,090 Interface, Inc. 9.500 02/01/14 1,128,150
225 Technical Olympic USA, Inc. 10.375 07/01/12 195,750
---------------
1,323,900
---------------
INFORMATION TECHNOLOGY 1.7%
1,340 Iron Mountain, Inc. 8.625 04/01/13 1,376,850
---------------
MANUFACTURING 4.4%
365 General Cable Corp. 9.500 11/15/10 392,375
925 JohnsonDiversey, Inc. 9.625 05/15/12 934,250
764 Manitowoc, Inc. 10.500 08/01/12 825,120
540 Propex Fabrics, Inc. 10.000 12/01/12 492,750
810 RBS Global & Rexnord Corp. (a) 9.500 08/01/14 826,200
---------------
3,470,695
---------------
METALS 6.3%
245 Foundation, PA Coal Co. 7.250 08/01/14 247,450
1,035 GrafTech Finance, Inc. 10.250 02/15/12 1,091,925
1,310 Massey Energy Co. 6.875 12/15/13 1,192,100
1,950 Novelis, Inc. (Canada) (a) 8.250 02/15/15 1,862,250
585 United States Steel Corp. 9.750 05/15/10 627,413
---------------
5,021,138
---------------
RETAIL 5.6%
830 Brown Shoe Co., Inc. 8.750 05/01/12 871,500
1,400 JC Penney Corp., Inc. 8.000 03/01/10 1,507,030
1,050 Linens 'n Things, Inc. (Floating Rate) (a) 11.132 01/15/14 1,018,500
1,025 Petro Stopping Center Financial 9.000 02/15/12 1,042,938
---------------
4,439,968
---------------
SERVICES 5.0%
1,530 Allied Waste North America, Inc. 6.375 04/15/11 1,499,400
45 Allied Waste North America, Inc. 7.875 04/15/13 46,238
950 Allied Waste North America, Inc. 8.500 12/01/08 999,875
295 Buhrmann US, Inc. 7.875 03/01/15 285,413
240 Buhrmann US, Inc. 8.250 07/01/14 238,200
700 MSW Energy Holdings II LLC 7.375 09/01/10 703,500
150 MSW Energy Holdings LLC 8.500 09/01/10 155,250
---------------
3,927,876
---------------
TELECOMMUNICATIONS 8.3%
861 Axtel SA (Mexico) 11.000 12/15/13 968,625
500 Exodus Communications, Inc. (b) (c) 11.250 07/01/08 0
290 Nordic Tel Co. Holdings (Denmark) (a) 8.875 05/01/16 306,313
1,000 Qwest Corp. 7.875 09/01/11 1,055,000
3,000 Qwest Corp. (Floating Rate) 8.640 06/15/13 3,225,000
940 Wind Acquisition Finance SA (Luxembourg) (a) 10.750 12/01/15 1,042,225
---------------
6,597,163
---------------
TRANSPORTATION 11.4%
1,110 Arvin Meritor, Inc. 8.750 03/01/12 1,068,375
1,720 Ford Motor Credit Co. 5.800 01/12/09 1,638,317
1,175 General Motors Acceptance Corp. 4.375 12/10/07 1,147,445
1,165 General Motors Acceptance Corp. 6.875 09/15/11 1,160,025
710 General Motors Corp. 7.125 07/15/13 627,463
2,250 Sonic Automotive, Inc. 8.625 08/15/13 2,278,125
1,055 TRW Automotive, Inc. 9.375 02/15/13 1,128,850
---------------
9,048,600
---------------
UTILITY 9.2%
850 AES Corp. 7.750 03/01/14 888,250
41 AES Corp. 8.875 02/15/11 44,075
127 AES Corp. 9.375 09/15/10 137,795
615 CMS Energy Corp. 6.300 02/01/12 611,925
465 CMS Energy Corp. 7.500 01/15/09 481,275
700 CMS Energy Corp. 8.500 04/15/11 759,500
600 Colorado Interstate Gas Co. 6.800 11/15/15 607,675
465 IPALCO Enterprises, Inc. 8.375 11/14/08 480,113
405 IPALCO Enterprises, Inc. 8.625 11/14/11 436,388
835 Monongahela Power Co. 5.000 10/01/06 835,000
510 Nevada Power Co. 8.250 06/01/11 564,013
552 Nevada Power Co. 9.000 08/15/13 605,051
484 PSEG Energy Holdings 8.625 02/15/08 504,570
340 Southern Natural Gas Co. 8.875 03/15/10 358,246
---------------
7,313,876
---------------
WIRELESS COMMUNICATIONS 3.6%
1,775 Nextel Communications, Inc. 6.875 10/31/13 1,808,764
1,000 Rural Cellular Corp. 8.250 03/15/12 1,035,000
---------------
2,843,764
---------------
TOTAL CORPORATE BONDS 170.1% 134,822,121
---------------
Equities 1.0%
DecisionOne Corp. (5,483 common shares) (d) (e) 0
Doe Run Resources Corp. (1 common stock warrant) (d) (e) 5,465
HCI Direct, Inc. (60,714 common shares) (d) (e) 728,568
Hosiery Corp. of America, Inc., Class A (1,000 common shares) (d) (e) 0
VS Holdings, Inc. (20,207 common shares) (d) (e) 0
XO Holdings, Inc. (681 common shares) (e) 3,323
XO Holdings, Inc., Ser A (1,364 common stock warrants) (e) 1,228
XO Holdings, Inc., Ser B (1,022 common stock warrants) (e) 613
XO Holdings, Inc., Ser C (1,022 common stock warrants) (e) 388
---------------
TOTAL EQUITIES 1.0% 739,585
---------------
TOTAL LONG-TERM INVESTMENTS 171.1%
(Cost $137,682,329) 135,561,706
Repurchase Agreement 7.9%
State Street Bank & Trust Co. ($6,285,000 par collateralized by U.S.
Government obligations in a pooled cash account, interest rate of
5.15%, dated 09/29/06, to be sold on 10/02/06 at $6,287,697)
(Cost $6,285,000) 6,285,000
---------------
TOTAL INVESTMENTS 179.0%
(Cost $143,967,329) 141,846,706
OTHER ASSETS IN EXCESS OF LIABILITIES 3.7% 2,972,673
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (82.7%) (65,555,318)
---------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0% $ 79,264,061
===============
Percentages are calculated as a percentage of net assets
applicable to common shares.
(a) 144A-Private Placement security which is exempt from registration
under Rule 144A of the Securities Act of 1933, as amended. This
security may only be resold in transactions exempt from
registration which are normally those transactions with qualified
institutional buyers.
(b) Non-income producing as security is in default.
(c) This borrower has filed for protection in federal bankruptcy
court.
(d) Market value is determined in accordance with procedures
established in good faith by the Board of Trustees.
(e) Non-income producing security.
Item 2. Controls and Procedures.
(a) The Trust's principal executive officer and principal financial officer have
concluded that the Trust's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Trust in this Form N-Q
was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
(b) There were no changes in the Trust's internal control over financial
reporting that occurred during the registrant's fiscal quarter that has
materially affected, or is reasonably likely to materially affect, the Trust's
internal control over financial reporting.
Item 3. Exhibits.
(a) A certification for the Principal Executive Officer of the registrant is
attached hereto as part of EX-99.cert.
(b) A certification for the Principal Financial Officer of the registrant is
attached hereto as part of EX-99.cert.
SIGNATURES
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.
(Registrant) Van Kampen High Income Trust II
By: /s/ Ronald E. Robison
---------------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: November 21, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ Ronald E. Robison
---------------------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: November 21, 2006
By: /s/ James W. Garrett
---------------------------------
Name: James W. Garrett
Title: Principal Financial Officer
Date: November 21, 2006