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
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(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
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(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas, New York, New York 10020
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(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: 3/31/07
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 - MARCH 31, 2007 (UNAUDITED)
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
----------------------------------------------------------------------------------------------------------
CORPORATE BONDS 163.7%
AEROSPACE 2.8%
$ 1,005 Hexcel Corp. ....................................... 6.750% 02/01/15 $ 997,798
1,175 K & F Acquisition, Inc. ............................ 7.750 11/15/14 1,254,313
------------
2,252,111
------------
BROADCASTING 2.9%
835 LIN Television Corp. ............................... 6.500 05/15/13 821,431
335 LIN Television Corp. Ser B ......................... 6.500 05/15/13 329,556
515 Salem Communications Corp. ......................... 7.750 12/15/10 527,875
655 Umbrella Acquisition,
Inc. (a)(b) ..................................... 9.750 03/15/15 655,819
------------
2,334,681
------------
CABLE 7.1%
1,175 Cablevision Systems Corp. (c) ...................... 9.870 04/01/09 1,251,375
410 CCH I LLC .......................................... 11.000 10/01/15 427,425
495 Echostar DBS Corp. ................................. 5.750 10/01/08 496,856
1,740 Echostar DBS Corp. ................................. 6.375 10/01/11 1,755,225
785 Echostar DBS Corp. ................................. 6.625 10/01/14 791,869
80 Intelsat Subsidiary Holding Co.
Ltd. (Bermuda) .................................. 8.250 01/15/13 83,800
145 NTL Cable PLC (United Kingdom) ..................... 8.750 04/15/14 151,525
100 NTL Cable PLC (United Kingdom) ..................... 9.125 08/15/16 106,000
693 PanAmSat Corp. ..................................... 9.000 08/15/14 753,638
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5,817,713
------------
CHEMICALS 12.5%
1,070 Equistar Chemicals, LP ............................. 10.125 09/01/08 1,131,525
600 Equistar Chemicals, LP ............................. 10.625 05/01/11 636,000
740 Innophos, Inc. ..................................... 8.875 08/15/14 769,600
380 Koppers, Inc. ...................................... 9.875 10/15/13 414,200
1,350 Lyondell Chemical Co. .............................. 10.500 06/01/13 1,485,000
905 Millennium America, Inc. ........................... 9.250 06/15/08 943,463
1,450 Nalco Co. .......................................... 7.750 11/15/11 1,493,500
1,140 RBS Global, Inc. & Rexnord
Corp ............................................ 9.500 08/01/14 1,191,300
762 Rockwood Specialties Group,
Inc ............................................. 10.625 05/15/11 807,720
750 Terra Capital, Inc. (b) ............................ 7.000 02/01/17 750,000
610 Westlake Chemical Corp. ............................ 6.625 01/15/16 597,800
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10,220,108
------------
CONSUMER PRODUCTS 2.7%
915 Jarden Corp. ....................................... 7.500 05/01/17 928,725
565 Oxford Industrials, Inc. ........................... 8.875 06/01/11 587,600
740 Steinway Musical Instruments,
Inc. (b) ........................................ 7.000 03/01/14 732,600
------------
2,248,925
------------
DIVERSIFIED MEDIA 5.9%
1,425 CanWest Media, Inc. (Canada) ....................... 8.000 09/15/12 1,482,000
685 Dex Media West LLC, Ser B .......................... 9.875 08/15/13 750,931
1,095 Idearc, Inc. (b) ................................... 8.000 11/15/16 1,131,956
515 Interpublic Group of Cos., Inc. .................... 6.250 11/15/14 486,675
985 Valassis Communications,
Inc. (b) ........................................ 8.250 03/01/15 972,688
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4,824,250
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ENERGY 16.5%
1,440 CHC Helicopter Corp. (Canada) ...................... 7.375 05/01/14 1,407,600
1,825 Chesapeake Energy Corp. ............................ 6.625 01/15/16 1,847,812
350 Chesapeake Energy Corp. ............................ 7.500 09/15/13 367,500
525 Compagnie Generale de
Geophysique, SA (France) ........................ 7.500 05/15/15 543,375
1,500 Frontier Oil Corp. ................................. 6.625 10/01/11 1,503,750
160 Hanover Compressor Co. ............................. 8.625 12/15/10 168,800
670 Hanover Compressor Co. ............................. 9.000 06/01/14 728,625
288 Hanover Equipment Trust, Ser A ..................... 8.500 09/01/08 290,880
280 Hanover Equipment Trust, Ser B ..................... 8.750 09/01/11 292,600
1,570 Hilcorp Energy/Finance Corp. (b) ................... 7.750 11/01/15 1,550,375
1,100 Kinder Morgan, Inc. ................................ 6.500 09/01/12 1,123,228
328 Magnum Hunter Resources, Inc. ...................... 9.600 03/15/12 344,400
1,310 Massey Energy Co. .................................. 6.875 12/15/13 1,249,412
620 OPTI Canada, Inc. (Canada) (b) ..................... 8.250 12/15/14 647,900
650 Pacific Energy Partners ............................ 7.125 06/15/14 679,542
750 Pogo Producing Co. ................................. 6.875 10/01/17 735,000
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13,480,799
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FINANCIAL 2.7%
1,455 Residential Capital LLC ............................ 6.375 06/30/10 1,455,659
714 UCAR Finance, Inc. ................................. 10.250 02/15/12 753,270
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2,208,929
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FOOD & DRUG 1.6%
1,200 Delhaize America, Inc. ............................. 8.125 04/15/11 1,318,597
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FOOD & TOBACCO 11.9%
1,300 Constellation Brands, Inc. ......................... 8.000 02/15/08 1,325,866
595 Michael Foods, Inc. ................................ 8.000 11/15/13 606,900
930 Pilgrim's Pride Corp. .............................. 7.625 05/01/15 932,325
2,205 Pilgrim's Pride Corp. .............................. 9.625 09/15/11 2,304,225
725 Reynolds American, Inc. ............................ 6.500 07/15/10 747,113
380 Smithfield Foods, Inc. ............................. 7.625 02/15/08 385,700
1,810 Smithfield Foods, Inc. Ser B ....................... 8.000 10/15/09 1,895,975
1,500 Tyson Foods, Inc. .................................. 6.850 04/01/16 1,563,468
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9,761,572
------------
FOREST PRODUCTS 7.0%
1,270 Crown Americas LLC ................................. 7.625 11/15/13 1,312,863
850 Georgia-Pacific Corp. (b) .......................... 7.125 01/15/17 856,375
1,000 Graphic Packaging International,
Inc ............................................. 9.500 08/15/13 1,068,750
2,083 Owens-Brockway Glass
Containers, Inc. ................................ 8.875 02/15/09 2,135,075
320 P.H. Glatfelter Co. ................................ 7.125 05/01/16 326,400
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5,699,463
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GAMING & LEISURE 14.6%
750 Caesars Entertainment, Inc. ........................ 8.875 09/15/08 783,750
965 Host Marriott LP ................................... 6.375 03/15/15 962,587
1,135 Host Marriott LP ................................... 7.125 11/01/13 1,166,212
1,475 Isle of Capri Casinos, Inc. ........................ 7.000 03/01/14 1,452,875
1,370 Las Vegas Sands Corp. .............................. 6.375 02/15/15 1,315,200
2,900 MGM Mirage, Inc. ................................... 6.000 10/01/09 2,918,125
1,510 Mohegan Tribal Gaming
Authority ....................................... 7.125 08/15/14 1,540,200
1,160 Station Casinos, Inc. .............................. 6.000 04/01/12 1,129,550
175 Station Casinos, Inc. .............................. 6.875 03/01/16 161,219
490 Station Casinos, Inc. .............................. 7.750 08/15/16 505,313
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11,935,031
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HEALTH CARE 15.8%
1,510 Community Health Systems, Inc. ..................... 6.500 12/15/12 1,562,850
1,845 DaVita, Inc. ....................................... 6.625 03/15/13 1,854,225
1,485 Fisher Scientific International,
Inc ............................................. 6.125 07/01/15 1,490,514
97 Fresenius Medical Care Capital
Trust II ........................................ 7.875 02/01/08 984,550
965 Fresenius Medical Care Capital
Trust IV ........................................ 7.875 06/15/11 1,018,075
595 HCA, Inc. .......................................... 5.750 03/15/14 509,469
70 HCA, Inc. .......................................... 6.250 02/15/13 63,788
35 HCA, Inc. .......................................... 6.300 10/01/12 32,812
895 HCA, Inc. .......................................... 6.375 01/15/15 766,344
882 HCA, Inc. .......................................... 8.750 09/01/10 927,202
165 Invacare Corp. (b) ................................. 9.750 02/15/15 166,650
735 Omnicare, Inc. ..................................... 6.750 12/15/13 741,431
750 Res-Care, Inc. ..................................... 7.750 10/15/13 768,750
575 Tenet Healthcare Corp. ............................. 9.875 07/01/14 583,625
1,405 Ventas Realty LP (REIT) ............................ 6.750 06/01/10 1,450,663
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12,920,948
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HOUSING 1.5%
1,090 Interface, Inc. .................................... 9.500 02/01/14 1,190,825
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INFORMATION TECHNOLOGY 3.0%
1,095 Freescale Semiconductor,
Inc. (b) ........................................ 8.875 12/15/14 1,101,844
1,340 Iron Mountain, Inc. ................................ 8.625 04/01/13 1,385,560
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2,487,404
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MANUFACTURING 4.8%
390 Baldor Electric Co. ................................ 8.625 02/15/17 414,375
1,200 Case New Holland, Inc. ............................. 7.125 03/01/14 1,254,000
925 JohnsonDiversey, Inc., Ser B ....................... 9.625 05/15/12 971,250
764 Manitowoc Co., Inc. ................................ 10.500 08/01/12 816,525
540 Propex Fabrics, Inc. ............................... 10.000 12/01/12 473,850
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3,930,000
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METALS 3.6%
245 Foundation, PA Coal Co. ............................ 7.250 08/01/14 249,288
1,950 Novelis, Inc. (Canada) ............................. 7.250 02/15/15 2,071,875
585 United States Steel Corp. .......................... 9.750 05/15/10 617,175
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2,938,338
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RETAIL 5.6%
830 Brown Shoe Co., Inc. ............................... 8.750 05/01/12 883,950
1,400 JC Penney Corp., Inc. .............................. 8.000 03/01/10 1,500,432
2,150 Phillips-Van Heusen Corp. .......................... 7.250 02/15/11 2,209,125
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4,593,507
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SERVICES 3.4%
2,210 Allied Waste North America, Inc. ................... 6.375 04/15/11 2,215,525
45 Allied Waste North America, Inc. ................... 7.875 04/15/13 46,912
115 ARAMARK Corp. (b) .................................. 8.500 02/01/15 120,175
60 ARAMARK Corp. (b)(c) ............................... 8.860 02/01/15 61,950
416 Aramark Services, Inc. ............................. 5.000 06/01/12 375,440
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2,820,002
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TELECOMMUNICATIONS 8.2%
861 Axtel, SA (Mexico) ................................. 11.000 12/15/13 962,167
500 Exodus Communications,
Inc. (d)(e)(f) .................................. 11.250 07/01/08 0
290 Nordic Tel Co. Holdings
(Denmark) (b) ................................... 8.875 05/01/16 311,750
1,000 Qwest Corp. ........................................ 7.875 09/01/11 1,067,500
3,000 Qwest Corp. (c) .................................... 8.605 06/15/13 3,285,000
940 Wind Acquisition Finance, SA
(Luxembourg) (b) ................................ 10.750 12/01/15 1,081,000
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6,707,417
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TRANSPORTATION 14.9%
1,030 Arvin Meritor, Inc. ................................ 8.750 03/01/12 1,068,625
390 Asbury Automotive Group,
Inc. (b) ........................................ 7.625 03/15/17 392,925
1,720 Ford Motor Credit Co. .............................. 5.800 01/12/09 1,687,925
990 Ford Motor Credit Co. .............................. 7.250 10/25/11 963,099
1,175 General Motors Acceptance
Corp ............................................ 4.375 12/10/07 1,160,375
2,140 General Motors Acceptance
Corp ............................................ 6.875 09/15/11 2,144,098
710 General Motors Corp. ............................... 7.125 07/15/13 665,625
1,025 Petro Stopping Centers LP .......................... 9.000 02/15/12 1,060,875
2,250 Sonic Automotive, Inc. Ser B ....................... 8.625 08/15/13 2,351,250
690 United Auto Group, Inc. (b) ........................ 7.750 12/15/16 700,350
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12,195,147
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UTILITY 9.4%
850 AES Corp. .......................................... 7.750 03/01/14 896,750
41 AES Corp. .......................................... 8.875 02/15/11 44,280
127 AES Corp. .......................................... 9.375 09/15/10 138,747
615 CMS Energy Corp. ................................... 6.300 02/01/12 624,225
465 CMS Energy Corp. ................................... 7.500 01/15/09 479,531
700 CMS Energy Corp. ................................... 8.500 04/15/11 764,750
1,100 Colorado Interstate Gas Co. ........................ 6.800 11/15/15 1,175,331
465 IPALCO Enterprises, Inc. ........................... 8.375 11/14/08 482,438
405 IPALCO Enterprises, Inc. ........................... 8.625 11/14/11 438,919
552 Nevada Power Co. ................................... 9.000 08/15/13 598,320
510 Nevada Power Co. Ser A ............................. 8.250 06/01/11 563,357
765 NRG Energy, Inc. ................................... 7.375 01/15/17 786,994
484 PSEG Energy Holdings ............................... 8.625 02/15/08 495,495
175 TXU Energy Co. ..................................... 7.000 03/15/13 182,087
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7,671,224
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WIRELESS COMMUNICATIONS 5.3%
1,425 American Tower Corp. ............................... 7.500 05/01/12 1,485,563
1,775 Nextel Communications, Inc., Ser
E ............................................... 6.875 10/31/13 1,820,186
1,000 Rural Cellular Corp. ............................... 8.250 03/15/12 1,050,000
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4,355,749
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TOTAL CORPORATE BONDS 163.7% ...................... ........................... 133,912,740
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EQUITIES 0.9%
DecisionOne Corp. (5,483 Common Shares) (f)(g) ........................................ 0
HCI Direct, Inc., Class 1 (60,714 Common Shares) (f)(g) ............................... 728,568
Hosiery Corp. of America, Inc., Class A (1,000 Common Shares) (f)(g) .................. 0
VS Holdings, Inc. (20,207 Common Shares) (f)(g) ....................................... 0
XO Holdings, Inc. (681 Common Shares) (g) ............................................. 3,494
XO Holdings, Inc., Ser A (1,364 Common Stock Warrants, expiring 01/16/10) (g) ......... 1,228
XO Holdings, Inc., Ser B (1,022 Common Stock Warrants, expiring 01/16/10) (g) ......... 531
XO Holdings, Inc., Ser C (1,022 Common Stock Warrants, expiring 01/16/10) (g) ......... 255
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TOTAL EQUITIES ........................................................................ 734,076
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TOTAL LONG-TERM INVESTMENTS 164.6%
(Cost $134,546,544) ................................................................. 134,646,816
REPURCHASE AGREEMENTS 16.1%
Citigroup Global Markets, Inc. ($3,477,728 par collateralized by U.S.
Government obligations in a pooled cash account, interest rate of
5.30%, dated 03/30/07, to be sold on 04/02/07 at $3,479,264) ...................... 3,477,728
State Street Bank & Trust Co. ($9,729,272 par collateralized by U.S.
Government obligations in a pooled cash account, interest rate of
5.13%, dated 03/30/07, to be sold on 04/02/07 at $9,733,431) ...................... 9,729,272
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TOTAL REPURCHASE AGREEMENTS
(Cost $13,207,000).................................................................. 13,207,000
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TOTAL INVESTMENTS 180.7%
(Cost $147,753,544)................................................................. 147,853,816
LIABILITIES IN EXCESS OF OTHER ASSETS (80.7%)........................................ (477,248)
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (80.2%)........................... (65,575,017)
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NET ASSETS APPLICABLE TO COMMON SHARES 100.0%........................................ $ 81,801,551
============
Percentages are calculated as a percentage of net assets applicable to common
shares
(a) Payment-in-kind security.
(b) 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.
(c) Floating Rate Coupon
(d) Non-income producing as security is in default.
(e) This borrower has filed for protection in federal bankruptcy court.
(f) Market value is determined in accordance with procedures established in
good faith by the Board of Directors.
(g) Non-income producing security
REIT - Real Estate Investment Trust
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: May 22, 2007
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: May 22, 2007
By: /s/ James W. Garrett
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Name: James W. Garrett
Title: Principal Financial Officer
Date: May 22, 2007