UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
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: (800) 882-0052
Date of fiscal year end: 05/31/07
Date of reporting period: 06/01/06 - 05/31/07
Item 1 - Report to Stockholders
ALTERNATIVES BLACKROCK SOLUTIONS EQUITIES FIXED INCOME LIQUIDITY
REAL ESTATE
Annual Reports
MAY 31, 2007
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.
Important Tax Information
All of the net investment income distributions paid by BlackRock Muni
Intermediate Duration Fund, Inc. and BlackRock Muni New York Intermediate
Duration Fund, Inc. during the taxable year ended May 31, 2007 qualify as
tax-exempt interest dividends for Federal income tax purposes.
Additionally, the following summarizes the taxable per share distributions
paid by BlackRock Muni Intermediate Duration Fund, Inc.
Long-Term
Payable Date Ordinary Income Capital Gains
Common Shareholders 12/28/2006 $ .082059 $ .036923
Preferred Shareholders
Series M7 10/31/2006 $17.25 $ 7.75
11/07/2006 $16.78 $ 7.55
11/14/2006 $16.94 $ 7.63
11/21/2006 $17.80 $ 8.02
11/28/2006 $ 7.15 $ 3.21
Series T7 11/08/2006 $17.80 $ 8.02
11/15/2006 $17.29 $ 7.78
11/22/2006 $17.80 $ 8.02
11/29/2006 $18.08 $ 8.11
12/06/2006 $ 6.98 $ 3.15
Series W7 11/09/2006 $17.80 $ 8.02
11/16/2006 $17.25 $ 7.75
11/24/2006 $18.89 $ 8.49
11/30/2006 $15.60 $ 7.03
12/07/2006 $ 7.96 $ 3.58
Series TH7 11/10/2006 $17.91 $ 8.06
11/17/2006 $18.06 $ 8.12
11/24/2006 $18.42 $ 8.29
12/01/2006 $18.37 $ 8.26
12/08/2006 $ 4.83 $ 2.19
Series F7 11/13/2006 $16.78 $ 7.55
11/20/2006 $17.69 $ 7.97
11/27/2006 $16.78 $ 7.55
12/04/2006 $17.75 $ 7.98
12/11/2006 $ 8.86 $ 3.99
Series TH28 11/24/2006 $73.66 $33.14
12/22/2006 $ 8.58 $ 3.87
ANNUAL REPORTS MAY 31, 2007
A Letter to Shareholders
Dear Shareholder
The 12 months from May 2006 to May 2007 took global equities on an
extraordinary ride. A sharp correction at the start, the first in almost
four years, gave way to strength in the latter half of 2006 and early 2007.
This rally was interrupted by another set-back at the end of February,
before markets resumed their upward march through May 31. Ultimately, the
tailwinds of a generally favorable global economic backdrop, tame
inflation, relatively low interest rates, still positive earnings growth
and attractive valuations prevailed over the headwinds of a weakening U.S.
economy, slowing housing market, escalating geopolitical concerns and high
energy prices. In fact, both the Dow Jones Industrial Average and the
Standard & Poor's 500 Index touched new record highs following the most
recent correction.
Mixed economic signals led to volatile behavior in fixed income markets as
well. However, from the beginning of 2007 through May 31, short-term bond
yields generally fell while longer-term yields increased. This resulted in
some re-steepening of the yield curve, which had been flat to inverted
throughout 2006. On a year-over-year basis, yields on 30-year Treasury
bonds fell 20 basis points (.20%) and 10-year yields fell 22 basis points,
while bond prices correspondingly rose. Meanwhile, the Federal Reserve
Board (the Fed) has left the federal funds rate at 5.25% since first
pausing in August 2006. While first-quarter gross domestic product growth
of 0.6% represented the slowest rate of expansion since 2002, the Fed
reiterated its view that inflation, not a slowing economy, remains its
primary concern. Many observers interpreted the Fed's reaction to mean that
the economy has hit its low and is bound for renewed strength, therefore
reducing the likelihood of an interest rate cut in the near future.
Against this backdrop, most major market indexes posted positive returns
for the annual and semi-annual reporting periods ended May 31, 2007, with
equities exhibiting particular strength:
Total Returns as of May 31, 2007 6-month 12-month
U.S. equities (Standard & Poor's 500 Index) +10.29% +22.79%
Small cap U.S. equities (Russell 2000 Index) + 8.39 +18.92
International equities (MSCI Europe, Australasia, Far East Index) +14.08 +26.84
Fixed income (Lehman Brothers Aggregate Bond Index) + 0.69 + 6.66
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 0.30 + 4.84
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) + 6.02 +12.64
We expect market volatility to linger throughout the remainder of 2007. As
you navigate the uncertainties, we encourage you to review your investment
goals with your financial professional and to make portfolio changes, as
needed. For more insight, we invite you to view "What's Ahead in 2007: An
Investment Perspective" and "Are You Prepared for Volatility?" at
www.blackrock.com/funds. We thank you for entrusting BlackRock with your
investment assets, and we look forward to continuing to serve you in the
months and years ahead.
Sincerely,
(Robert C. Doll, Jr.)
Robert C. Doll, Jr.
Fund President and Director
THIS PAGE NOT PART OF YOUR FUND REPORT
ANNUAL REPORTS MAY 31, 2007
A Discussion With Your Funds' Portfolio Managers
Given limited trading opportunities, Fund performance was driven largely by a
cautious balance of yield and capital appreciation potential.
Describe the recent market environment relative to municipal bonds.
Over the past 12 months, long-term bond yields generally moved lower as bond
prices, which move opposite of yields, increased. The long-term tax-exempt bond
market's solid technical position allowed it to outperform the taxable U.S.
Treasury market during the period.
Bond prices began to improve (and yields fall) in late June 2006 as economic
growth weakened. The improvement accelerated in response to the Federal Reserve
Board's (the Fed's) decision in August to keep its target interest rate on hold
at 5.25% after 17 consecutive interest rate hikes since mid-2004. The bond
price rally continued in the fall amid moderating oil prices and slower gross
domestic product (GDP) growth. By the end of November 2006, 30-year U.S.
Treasury bond yields had fallen to 4.56%.
More recently, strong U.S. equity markets, continued moderate employment growth
and mounting investor conviction that the Fed would keep interest rates steady
for the remainder of the year combined to push bond prices lower, while yields
correspondingly rose. Still, over the full 12 months, 30-year U.S. Treasury
bond yields fell 20 basis points (.20%) to 5.01%, and 10-year Treasury yields
declined 22 basis points to 4.90%.
The long-term tax-exempt bond market outperformed U.S. Treasury issues over the
12 months as investor demand outstripped a resurgent new-issue calendar. As
measured by Municipal Market Data, yields on 30-year, AAA-rated issues declined
28 basis points to 4.25%. Meanwhile, yields on intermediate-maturity bonds fell
less than those with longer maturities, as the Fed's string of interest rate
hikes in 2005 and 2006, coupled with stronger investor demand for longer-
maturity issues, resulted in a flattening of the municipal yield curve. Yields
on AAA-rated 10-year municipal issues declined 11 basis points to 3.91%.
Notably, the municipal curve remains steep relative to the Treasury curve.
Investor demand for municipal product continued to strengthen throughout the
reporting period. Statistics from the Investment Company Institute indicate
that long-term municipal bond funds received more than $10.1 billion in net new
cash flows during the first four months of 2007.
This represented a 71% increase relative to the first four months of 2006.
Weekly fund flows, as reported by AMG Data Services, also have risen. Weekly
inflows during the three months ended May 2007 averaged over $520 million, up
from a weekly average of $400 million in fourth quarter 2006 and well above the
$233 million weekly average of last June. Recent retail investor demand has
been bolstered by strong seasonal cash flows. It is estimated that investors
will receive more than $42 billion this June from coupon income and the
proceeds from bond maturities and early redemptions. Another $35 billion in
such proceeds is expected to be received in July.
As investor demand has strengthened, so has municipal bond supply. Some
$423 billion in new long-term municipal bonds was issued during the 12-month
reporting period, a nearly 12% increase compared to the same 12 months a year
ago. In the latter half of the reporting period, more than $230 billion in new
tax-exempt bonds was issued, an increase of over 35% compared to the same six
months a year ago. Over $173 billion in long-term municipal bonds has been
underwritten so far this year. This puts 2007 annual issuance more than 5%
ahead of 2005's record pace. Issuers have continued to take advantage of
historically low interest rates to refinance outstanding debt. So far this
year, there have been more than 10 underwritings exceeding $1 billion in size,
leading many analysts to adjust their estimates of 2007 annual bond issuance to
near or above $400 billion. These "mega-deals" have continued to be relatively
easily absorbed by tax-exempt market participants, especially non-traditional
and foreign buyers, both of which find the liquidity these deals afford
particularly attractive.
Looking ahead, the increase in new bond supply seen this year appears unlikely
to abate significantly. As such, investor demand will be critical in
maintaining the tax-exempt market's strong technical position. Having said
that, we expect that both traditional and non-traditional investors will
continue to be drawn to the municipal market given the relative stability of
tax-exempt yield ratios in recent months and the steepness of the municipal
yield curve compared to the taxable curve. We believe this should help to
support the market's performance in the months ahead.
ANNUAL REPORTS MAY 31, 2007
BlackRock Muni Intermediate Duration Fund, Inc.
How did the Fund perform during the fiscal year?
For the 12-month period ended May 31, 2007, the Common Stock of BlackRock Muni
Intermediate Duration Fund, Inc. had net annualized yields of 4.91% and 5.00%,
based on a year-end per share net asset value of $15.10 and a per share market
price of $14.85, respectively, and $.742 per share income dividends. Over the
same period, the total investment return on the Fund's Common Stock was +6.14%,
based on a change in per share net asset value from $15.07 to $15.10, and
assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, exceeded the +5.25%
average return of the Lipper Intermediate Municipal Debt Funds category for
the 12-month period. (Funds in this Lipper category invest in municipal debt
issues with dollar-weighted average maturities of 5 years to 10 years.) The
Fund maintains an above-average coupon structure, which permits it to provide
a higher yield relative to the Lipper group in a stable interest rate
environment. During periods of rising interest rates, its relatively lower
interest rate sensitivity tempers price volatility, and this contributed
positively to performance during the period.
The Fund's average coupon at period-end was approximately 5.70%, compared to
a market average of roughly 4.40% (as measured by the Municipal Market Data
10-year scale). We believe this coupon structure is most effective given the
portfolio's below-average duration stance, and helps the Fund to maintain an
attractive income distribution rate.
For the six-month period ended May 31, 2007, the total investment return on the
Fund's Common Stock was +.14%, based on a change in per share net asset value
from $15.57 to $15.10, and assuming reinvestment of all distributions. For the
same period, the average return of the Lipper Intermediate Municipal Debt Funds
category was -.35%.
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 distributions, 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 notable structural changes to the portfolio over the past
12 months, as we are comfortable with the Fund's current positioning and
performance. As interest rates started to rise more significantly toward the
end of the period, we began looking slightly further out on the municipal yield
curve for investment opportunities. We believe the 15-year to 20-year segment
of the curve offers the best yield value, while allowing us to remain within
the Fund's duration parameters.
For the six months ended May 31, 2007, the average yields for the Fund's
Auction Market Preferred Stock were 3.61% for Series M7; 3.66% for Series T7;
3.74% for Series W7; 3.75% for Series TH7; 3.72% for Series F7; and 3.66% for
Series TH28. The Fed kept its target interest rate on hold at 5.25% since last
summer and, as a result, the Fund's borrowing costs stabilized and even moved
slightly lower. Although flat by historical standards, the municipal yield
curve remained positively sloped (long-term yields were higher than short-term
yields) and continued to generate an income benefit to the Common Stock
shareholder from the leveraging of Preferred Stock. As always, 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 maintain the Fund's short duration relative to the Lipper category average.
This aided performance as interest rates moved higher late in the period. We
will need to be aware of changes in duration characteristics of individual
holdings as interest rates rise. We intend to maintain 80% of the Fund's net
assets in securities with durations between three years and 10 years. Because
durations change with the absolute level of interest rates, we will be mindful
to ensure that any new purchases enable the Fund to maintain its above-average
coupon structure, consistent with our investment strategy.
ANNUAL REPORTS MAY 31, 2007
A Discussion With Your Funds' Portfolio Managers (concluded)
Generally speaking, the Fund has a market weighting in higher-credit-quality
issues. We intend to move the Fund to an overweight position in high-quality
securities going forward, at least until the yield advantage of lower-rated
credits increases. Currently, credit spreads are very tight and there is little
additional yield to be gained by investing in lower-quality issues. Finally, we
will concentrate our new purchases in the 15-year to 20-year maturity area of
the municipal yield curve, the steepest part of the curve, in an effort to
enhance the Fund's current yield.
BlackRock Muni New York Intermediate Duration Fund, Inc.
Describe conditions in the State of New York.
The State of New York ended the period rated Aa3, AA and AA- by Moody's,
Standard & Poor's and Fitch, respectively, all with stable trends. New York
ranks fifth in both debt per capita and debt as a percent of personal income,
according to Moody's. It also ranked fifth in per capita income in 2006
(preliminary), according to the U.S. Department of Commerce. New York's April
2007 unemployment rate was 4.1%, which was below the national rate of 4.5%.
The state's fiscal year 2006 operations resulted in a $2 billion surplus and
an ending $900 million "rainy day" reserve. The November 2006 financial plan
update forecasts a $1.1 billion general fund surplus in fiscal year 2007, due
to higher-than-expected receipts and spending reductions. On April 1, 2007,
New York lawmakers passed a $120.9 billion budget for fiscal year 2008 that
increases spending by 8.7%, the largest annual increase since 2000. Despite
$1 billion in Medicaid cuts, property-tax rebates and increased school aid
pushed spending higher. Key credit issues remain cost pressures from Medicaid,
pensions and school aid, as well as the sustainability of growing personal
income tax receipts.
How did the Fund perform during the fiscal year?
For the 12-month period ended May 31, 2007, the Common Stock of BlackRock Muni
New York Intermediate Duration Fund, Inc. had net annualized yields of 4.30%
and 4.60%, based on a year-end per share net asset value of $14.91 and a per
share market price of $13.93, respectively, and $.641 per share income
dividends. Over the same period, the total investment return on the Fund's
Common Stock was +6.57%, based on a change in per share net asset value from
$14.66 to $14.91, and assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, exceeded the +5.25%
average return of the Lipper Intermediate Municipal Debt Funds category for
the 12-month period. (Funds in this Lipper category invest in municipal debt
issues with dollar-weighted average maturities of 5 years to 10 years.) When
evaluating relative performance, it is important to note that while the Lipper
category accounts for the Fund's intermediate duration profile, there will be
some variance in total returns and yields, as the category includes national
funds, in addition to funds focused on single states other than New York.
Total return outperformance resulted from a combination of the Fund's slightly
longer duration relative to the Lipper group and our concentrated effort to
enhance distributable income for shareholders. Additionally, the Fund benefited
from select purchases of higher-yielding, lower-rated investment grade issues
as lower-quality credits continued to top the high-grade market throughout the
reporting period, in addition to generating incremental yield for the
portfolio.
Detracting from both the Fund's total return performance and income was a below-
average distribution rate. In part, this is attributable to the low-interest-
rate environment that existed when the Fund was established. While we are
continuously looking for opportunities to book bonds at higher yields, a soft
market has presented few prospects, leaving the Fund with more lower-yielding
bonds than some of its more-seasoned peers.
For the six-month period ended May 31, 2007, the total investment return on the
Fund's Common Stock was -.18%, based on a change in per share net asset value
from $15.28 to $14.91, and assuming reinvestment of all distributions. For the
same period, the average return of the Lipper Intermediate Municipal Debt Funds
category was -.35%.
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 distributions, 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.
ANNUAL REPORTS MAY 31, 2007
What changes were made to the portfolio during the period?
Trading activity was limited throughout the reporting period. We focused
largely on improving the Fund's distribution rate and, in many cases, opted to
retain the Fund's older bonds, which have higher yields than those currently
available in the new-issue market.
New issuance of New York municipal bonds was down nearly 16% versus a year ago,
despite a spate of refunding activity at the end of 2006. Broadly speaking, few
issues met our desired investment characteristics as new supply in the
municipal market has been dominated by debt refinancing (wherein issuers retire
existing bonds by using proceeds from new issuance) and other non-traditional
structured products.
Although the macro environment prohibited any major restructuring, we did begin
to trim the portfolio's short-term holdings, specifically shorter-dated
prerefunded bonds and high-coupon, short-call bonds (generally those having a
call date within three years or less). These bonds are priced with a premium
and, as the call date approaches, their value depreciates at an accelerating
rate and they tend to underperform the broader market. While this move
temporarily hurts distributable income, we believe it is a worthwhile trade-off
to protect the future total return potential of the Fund.
We reinvested the proceeds primarily on the long end of the municipal yield
curve, where we found attractive opportunities to trade the portfolio and to
generate higher levels of income for the Fund. Key purchases during the year
included: insured Yankees and Mets (Queens Stadium) bonds, high-quality
holdings that we believe have long-term capital appreciation potential;
housing bonds, which offer the benefits of above-market yield and lower-than-
average volatility; education bonds, mainly those of colleges and universities,
where financial profiles have been steadily improving; and Puerto Rico bonds,
which - despite their recent underperformance - offer incremental yield and
enhance portfolio liquidity. In addition, we modestly reduced our insured
holdings in favor of higher-yielding, lower-quality credits (primarily issues
rated BBB and BBB+).
For the six months ended May 31, 2007, the average yield for the Fund's Auction
Market Preferred Stock was 3.48%. There was no material change in the Fund's
borrowing costs over the course of the period, as the Fed kept the federal
funds target rate steady at 5.25% since first pausing last August. Although
flat by historical standards, the tax-exempt yield curve maintained a positive
slope throughout the period (particularly compared to the U.S. Treasury yield
curve), allowing us to borrow at a lower rate than where we invest. This
continued to generate an income benefit to the holders of Common Stock from the
leveraging of Preferred Stock. As always, should the spread between short-term
and long-term interest rates narrow, the benefits of leverage will decline and,
accordingly, the yield on the Fund's Common Stock will be reduced. (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 maintained a fully invested portfolio throughout the period and ended the
year with a slightly longer duration than that of our comparable Lipper group.
Given a quiet Fed and few new-issue prospects, we are focusing on identifying
compelling relative value trading opportunities, while continuing our efforts
to add yield to the portfolio. We are encouraged by the recent back-up (that
is, increase) in interest rates and the pick-up in new-issue supply, and will
continue to evaluate prospects for portfolio diversification and income
accrual. We also will seek additional opportunities to sell shorter-dated bonds
and reinvest those proceeds in attractive, longer-dated bonds.
Looking ahead, we believe the municipal bond market is well positioned for
outperformance given a high level of scheduled municipal bond payouts in the
coming months. Approximately $70 billion in municipal coupon and principal
payments are due to investors in June and July - money that tends to be
reinvested in the municipal market. Moreover, the recent back-up in interest
rates has attracted the interest of retail buyers (traditional and majority
purchasers of municipal bonds), which we believe should translate into
sustained demand for municipal securities.
Walter C. O'Connor, CFA
Portfolio Manager
BlackRock Muni Intermediate Duration Fund, Inc.
Timothy T. Browse, CFA
Portfolio Manager
BlackRock Muni New York Intermediate Duration Fund, Inc.
June 26, 2007
ANNUAL REPORTS MAY 31, 2007
The Benefits and Risks of Leveraging
The Funds utilize leveraging to seek to enhance the yields and net asset values
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 May 31, 2007, 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 35.79% and 33.08% 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. (See Note 1(c) to Financial Statements
for details of municipal bonds held in trust.)
Quality Profiles as of May 31, 2007
BlackRock Muni Intermediate Percent of
Duration Fund, Inc. Total
By S&P/Moody's Rating Investments
AAA/Aaa 46.0%
AA/Aa 4.3
A/A 12.8
BBB/Baa 18.5
BB/Ba 1.8
B/B 1.2
CCC/Caa 1.7
NR (Not Rated) 12.5
Other* 1.2
* 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 27.5%
AA/Aa 22.2
A/A 12.7
BBB/Baa 21.9
BB/Ba 5.1
CCC/Caa 2.8
NR (Not Rated) 6.7
Other* 1.1
* Includes portfolio holdings in variable rate demand notes.
ANNUAL REPORTS MAY 31, 2007
Schedule of Investments
As of May 31, 2007 BlackRock Muni Intermediate Duration Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
Alabama--4.2%
Jefferson County, Alabama, Limited Obligation
School Warrants, Series A:
$ 5,500 5.50% due 1/01/2021 $ 5,911
6,500 5.25% due 1/01/2023 6,854
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 6,623
4,700 University of Alabama, General Revenue Refunding
Bonds, VRDN, Series C, 3.86% due 7/01/2034 (f)(h) 4,700
Arizona--2.7%
2,860 Coconino County, Arizona, Pollution Control
Corporation Revenue Bonds (Arizona Public Service
Co.--Navajo Project), VRDN, AMT, Series A, 3.93%
due 10/01/2029 (h) 2,860
2,820 Maricopa County, Arizona, IDA, Education Revenue
Bonds (Arizona Charter Schools Project 1), Series A,
6.625% due 7/01/2020 2,866
3,000 Navajo County, Arizona, IDA, IDR (Stone Container
Corporation Project), AMT, 7.20% due 6/01/2027 3,065
Pima County, Arizona, IDA, Education Revenue Bonds
(Arizona Charter Schools Project):
995 Series C, 6.70% due 7/01/2021 1,064
820 Series K, 6.375% due 7/01/2013 (g) 922
930 Series K, 6.375% due 7/01/2031 1,000
3,630 Vistancia Community Facilities District, Arizona, GO,
5% due 7/15/2014 3,811
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 3,843
California--23.6%
8,000 Antelope Valley, California, Health Care District Revenue
Bonds, VRDN, Series A, 5.25% due 9/01/2017 (h) 8,218
5,000 California State Department of Water Resources,
Power Supply Revenue Bonds, Series A, 5.375%
due 5/01/2012 (g) 5,394
California State, GO:
15,575 5.50% due 4/01/2014 (g) 17,086
15 5.50% due 4/01/2028 16
5,000 California State, GO, Refunding, 5.25%
due 2/01/2027 (f)(i) 5,265
10,000 California State Public Works Board, Lease Revenue
Bonds (Department of Corrections), Series C, 5.50%
due 6/01/2020 10,839
2,500 California Statewide Communities Development
Authority, Health Facility Revenue Bonds (Memorial
Health Services), Series A, 6% due 10/01/2023 2,704
Face
Amount Municipal Bonds Value
California (concluded)
$ 2,400 Elk Grove, California, Poppy Ridge Community
Facilities Number 3 Special Tax, Series 1, 6%
due 9/01/2008 (g) $ 2,483
5,000 Golden State Tobacco Securitization Corporation
of California, Tobacco Settlement Revenue
Refunding Bonds, Senior Series A-1, 5%
due 6/01/2015 5,177
1,435 Los Angeles, California, Regional Airports Improvement
Corporation, Facilities Lease Revenue Refunding
Bonds (LAXFUEL Corporation--Los Angeles
International Airport), AMT, 5.50% due 1/01/2032 (a) 1,497
30,000 Los Angeles, California, Unified School District, GO,
Series A, 5% due 7/01/2013 (f)(g) 31,904
10,135 Peralta, California, Community College District, GO
(Election of 2000), Series D, 5% due 8/01/2030 (e) 10,626
1,515 Rowland, California, Unified School District, GO
(Election of 2000), Series B, 5.25% due 8/01/2027 (e) 1,601
Sacramento, California, Special Tax (North Natomas
Community Facilities), Series 4-C:
585 5.60% due 9/01/2020 614
1,720 5.75% due 9/01/2022 1,817
500 5.90% due 9/01/2023 532
3,000 6% due 9/01/2028 3,193
2,295 San Francisco, California, City and County, GO (Branch
Library Facilities Improvements), Series G, 5%
due 6/15/2023 (f) 2,406
3,000 San Jose, California, Airport Revenue Bonds, Series A,
5.25% due 3/01/2017 (c) 3,136
3,100 San Jose, California, GO (Libraries, Parks and Public
Safety Projects), 5% due 9/01/2030 (f) 3,225
9,030 Sequoia, California, Unified High School District, GO,
Refunding, Series B, 5.50% due 7/01/2035 (e) 9,966
4,875 Tamalpais, California, Union High School District, GO
(Election of 2001), 5% due 8/01/2028 (e) 5,071
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 (e) 2,688
Colorado--2.6%
2,000 Denver, Colorado, City and County Airport Revenue
Refunding Bonds, Series E, 5.25% due 11/15/2023 (f) 2,032
800 Elk Valley, Colorado, Public Improvement Revenue
Bonds (Public Improvement Fee), Series A, 7.10%
due 9/01/2014 850
2,250 Montrose, Colorado, Memorial Hospital, Revenue Bonds,
6.375% due 12/01/2023 2,492
7,500 Plaza Metropolitan District Number 1, Colorado, Tax
Allocation Revenue Bonds (Public Improvement Fees),
7.50% due 12/01/2015 8,266
1,000 Southlands, Colorado, Medical District, GO (Metropolitan
District # 1), 6.75% due 12/01/2016 1,100
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)
COP Certificates of Participation
EDA Economic Development Authority
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
PILOT Payment in Lieu of Taxes
S/F Single-Family
VRDN Variable Rate Demand Notes
ANNUAL REPORTS MAY 31, 2007
Schedule of Investments (continued)
BlackRock Muni Intermediate Duration Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
Connecticut--1.9%
$ 1,160 Connecticut State Development Authority, Airport
Facility Revenue Bonds (Learjet Inc. Project), AMT,
7.95% due 4/01/2026 $ 1,387
8,000 Connecticut State Development Authority, PCR,
Refunding (Connecticut Light and Power Company),
Series A, 5.85% due 9/01/2028 8,319
1,250 South Central Connecticut Regional Water Authority,
Water System Revenue Refunding Bonds, Fifteenth,
Series A, 5.125% due 8/01/2009 (c)(g) 1,297
Florida--6.3%
2,900 Harbor Bay, Florida, Community Development District,
Capital Improvement Special Assessment Bonds, 6.75%
due 5/01/2034 3,182
940 Heritage Isle at Viera Community Development District,
Florida, Special Assessment Bonds, Series B, 5%
due 11/01/2009 939
5,230 Hillsborough County, Florida, IDA, Hospital Revenue
Bonds (Tampa General Hospital Project), 5.25%
due 10/01/2041 5,369
2,100 Lee County, Florida, Hospital Board of Directors, Hospital
Revenue Bonds (Memorial Health System), VRDN,
Series A, 3.87% due 4/01/2025 (h) 2,100
5,500 Miami-Dade County, Florida, Aviation Revenue Refunding
Bonds (Miami International Airport), AMT, 5.75%
due 10/01/2019 (c) 5,906
Midtown Miami, Florida, Community Development
District, Special Assessment Revenue Bonds:
3,500 Series A, 6% due 5/01/2024 3,749
2,000 Series B, 6.50% due 5/01/2037 2,191
3,670 Orange County, Florida, Health Facilities Authority, Health
Care Revenue Refunding Bonds (Orlando Lutheran
Towers), 5% due 7/01/2013 3,624
875 Orlando, Florida, Urban Community Development District,
Capital Improvement Special Assessment Bonds, 6%
due 5/01/2020 933
1,085 Portofino Shores, Florida, Community Development
District, Special Assessment Bonds, Series A, 6.40%
due 5/01/2034 1,160
2,390 South Lake County, Florida, Hospital District Revenue
Bonds (South Lake Hospital Inc.), 6.625%
due 10/01/2023 2,656
305 Sterling Hill, Florida, Community Development District,
Capital Improvement Revenue Refunding Bonds,
Series B, 5.50% due 11/01/2010 305
4,000 University of Florida Reasearch Foundation Inc., Capital
Improvement Revenue Bonds, 5.125%
due 9/01/2033 (a) 4,083
Georgia--2.9%
1,500 Atlanta, Georgia, Tax Allocation Bonds (Atlantic Station
Project), 7.90% due 12/01/2024 1,652
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 4,326
2,800 7.25% due 1/01/2035 2,243
4,500 Fulton County, Georgia, Residential Care Facilities,
Revenue Refunding Bonds (Canterbury Court Project),
Series A, 5.80% due 2/15/2018 4,557
Savannah, Georgia, EDA, First Mortgage Revenue Bonds
(Marshes of Skidaway), Series A:
1,245 6.25% due 1/01/2012 1,267
2,245 6.85% due 1/01/2019 2,387
Face
Amount Municipal Bonds Value
Idaho--0.8%
$ 4,000 Boise City, Idaho, COP, AMT, 5.50% due 9/01/2025 (c) $ 4,157
370 Idaho Housing and Finance Association, S/F Mortgage
Revenue Bonds, AMT, Series F-2, 5.85%
due 7/01/2015 (d)(k) 375
Illinois--3.5%
2,510 Chicago, Illinois, O'Hare International Airport
Revenue Bonds, Third Lien, AMT, Series B-2,
6% due 1/01/2029 (j) 2,789
6,000 Hodgkins, Illinois, Environmental Improvement Revenue
Bonds (Metro Biosolids Management LLC Project),
AMT, 5.90% due 11/01/2017 6,179
6,930 Illinois, Development Finance Authority Revenue Bonds
(Community Rehabilitation Providers Facilities),
Series A, 6.625% due 7/01/2032 7,497
1,800 Illinois State Finance Authority Revenue Bonds (Landing
At Plymouth Place Project), Series A, 6% due 5/15/2025 1,907
1,580 Village of Wheeling, Illinois, Revenue Bonds (North
Milwaukee/Lake-Cook Tax Increment Financing (TIF)
Redevelopment Project), 6% due 1/01/2025 1,602
Indiana--0.8%
4,300 Indiana Transportation Finance Authority, Highway
Revenue Bonds, Series A, 5% due 6/01/2013 (e)(g) 4,546
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 (f) 7,471
5,000 Port New Orleans, Louisiana, IDR, Refunding (Continental
Grain Company Project), 6.50% due 1/01/2017 5,078
Maine--0.4%
1,965 Portland, Maine, Housing Development Corporation,
Senior Living Revenue Bonds (Avesta Housing
Development Corporation Project), Series A, 6%
due 2/01/2034 2,066
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 535
Massachusetts--3.5%
4,560 Massachusetts Bay Transportation Authority, Sales Tax
Revenue Refunding Bonds, Senior Series A, 5%
due 7/01/2012 (g) 4,793
Massachusetts State Development Finance Agency,
Resource Recovery Revenue Bonds (Ogden Haverhill
Associates), AMT, Series B:
1,210 5.35% due 12/01/2015 1,238
2,000 5.50% due 12/01/2019 2,067
3,000 Massachusetts State Industrial Finance Agency, Resource
Recovery Revenue Refunding Bonds (Ogden Haverhill
Project), AMT, Series A, 5.30% due 12/01/2009 3,066
8,325 Massachusetts State School Building Authority,
Dedicated Sales Tax Revenue Bonds, Series A, 5%
due 8/15/2030 (e) 8,712
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 2,457
4,795 Michigan State Hospital Finance Authority, Revenue
Refunding Bonds (Oakwood Obligated Group), Series A,
6% due 4/01/2022 5,183
ANNUAL REPORTS MAY 31, 2007
Schedule of Investments (continued)
BlackRock Muni Intermediate Duration Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
Minnesota--2.6%
$ 8,875 Minneapolis and Saint Paul, Minnesota, Housing
Finance Board, S/F Mortgage Revenue Bonds
(Mortgaged-Backed Securities Program--City Living),
AMT, Series A-1, 5.25% due 12/01/2040 (l)(m) $ 9,193
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 1,077
2,545 6% due 12/01/2021 2,740
2,000 Minnesota State Municipal Power Agency, Electric
Revenue Bonds, Series A, 5.25% due 10/01/2024 2,102
Mississippi--1.4%
Mississippi Business Finance Corporation, Mississippi,
PCR, Refunding (System Energy Resources Inc. Project):
5,000 5.875% due 4/01/2022 5,051
2,910 5.90% due 5/01/2022 2,939
Nevada--0.4%
2,245 Clark County, Nevada, Improvement District Number 142,
Special Assessment Bonds, 6.375% due 8/01/2023 2,317
New Jersey--13.6%
Garden State Preservation Trust of New Jersey, Open
Space and Farmland Preservation Revenue Bonds,
Series A (e):
3,635 5.80% due 11/01/2021 4,096
5,050 5.80% due 11/01/2023 5,690
New Jersey EDA, Cigarette Tax Revenue Bonds:
10,950 5.625% due 6/15/2018 11,259
9,810 5.75% due 6/15/2029 10,538
17,900 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds,
Series A, 5.25% due 7/01/2033 (f) 19,029
5,540 New Jersey EDA, Special Facility Revenue Bonds
(Continental Airlines Inc. Project), AMT, 6.625%
due 9/15/2012 5,879
5,000 New Jersey EDA, Water Facilities Revenue Refunding
Bonds (American Water), AMT, Series B, 5.125%
due 4/01/2022 (a) 5,198
New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds, Series D:
4,215 5% due 6/15/2018 (a) 4,471
11,120 5% due 6/15/2019 (e) 11,764
New Mexico--3.9%
Farmington, New Mexico, PCR, Refunding:
3,000 (Public Service Company of New Mexico--
San Juan Project), Series D, 6.375% due 4/01/2022 3,066
9,000 (Tucson Electric Power Company--
San Juan Project), Series A, 6.95% due 10/01/2020 9,225
9,520 New Mexico Finance Authority, Senior Lien State
Transportation Revenue Bonds, Series A, 5.125%
due 6/15/2018 (f) 10,153
New York--26.0%
1,090 Dutchess County, New York, IDA, Civic Facility Revenue
Bonds (Saint Francis Hospital), Series B, 7.25%
due 3/01/2019 1,190
10,500 Metropolitan Transportation Authority, New York,
Revenue Refunding Bonds, Series A, 5.75%
due 11/15/2032 11,312
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 876
Face
Amount Municipal Bonds Value
New York (concluded)
$ 3,500 New York City, New York, City IDA, Special Facility
Revenue Bonds (Continental Airlines Inc. Project),
AMT, 8.375% due 11/01/2016 $ 3,870
1,110 New York City, New York, City Transitional Finance
Authority, Future Tax Secured Revenue Bonds, Series C,
5.50% due 5/01/2009 (g) 1,157
5,000 New York City, New York, GO, Refunding, Series B,
5.75% due 8/01/2015 5,401
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 2,191
9,070 New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds, Series A, 5%
due 10/15/2020 (f) 9,573
5,580 New York State Dormitory Authority, Lease Revenue
Refunding Bonds (Court Facilities), Series A, 5.25%
due 5/15/2012 5,885
New York State Dormitory Authority, Non-State
Supported Debt, Revenue Refunding Bonds
(Mount Sinai-NYU Medical Center Health System),
Series A:
2,385 6.625% due 7/01/2018 2,545
4,615 6.625% due 7/01/2018 (g) 5,026
1,330 6.625% due 7/01/2019 1,418
3,670 6.625% due 7/01/2019 (g) 3,997
New York State Dormitory Authority Revenue Bonds:
1,000 (North Shore L I Jewish Group), 5% due 5/01/2012 1,039
9,540 (School Districts Financing Program), Series D, 5.25%
due 10/01/2023 (f) 10,116
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) 8,355
7,380 New York State Environmental Facilities Corporation,
State Personal Income Tax Revenue Bonds, Series A,
5.25% due 12/15/2014 (c)(g) 8,020
60 New York State Thruway Authority, Local Highway and
Bridge Service Contract, Revenue Refunding Bonds,
5.50% due 4/01/2017 64
New York State Urban Development Corporation,
Correctional and Youth Facilities Services, Revenue
Refunding Bonds, Series A:
825 5.50% due 1/01/2011 (g) 871
10,825 5.50% due 1/01/2017 11,384
10,000 New York State Urban Development Corporation,
Personal Income Tax Revenue Bonds (State Facilities),
Series A-1, 5.25% due 3/15/2034 (c) 10,606
5,000 Port Authority of New York and New Jersey, Senior
Consolidated Revenue Bonds, AMT, 131st Series,
5% due 12/15/2017 (b) 5,256
Tobacco Settlement Financing Corporation of New York
Revenue Bonds:
3,340 Series A-1, 5.50% due 6/01/2016 3,484
6,510 Series A-1, 5.25% due 6/01/2022 (a) 6,915
9,750 Series C-1, 5.50% due 6/01/2020 (c) 10,513
7,000 Series C-1, 5.50% due 6/01/2021 7,528
10,000 Series C-1, 5.50% due 6/01/2022 10,733
ANNUAL REPORTS MAY 31, 2007
Schedule of Investments (continued)
BlackRock Muni Intermediate Duration Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
North Carolina--1.9%
$ 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 $ 3,256
800 North Carolina Capital Facilities Finance Agency,
Exempt Facilities Revenue Bonds (Republic
Services Inc. Project), VRDN, AMT, 3.89% due
7/01/2034 (h) 800
6,000 North Carolina Medical Care Commission, Health Care
Facilities, First Mortgage Revenue Refunding Bonds
(Presbyterian Homes Project), 7% due 10/01/2010 (g) 6,632
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 1,378
Pennsylvania--6.4%
3,500 Montgomery County, Pennsylvania, IDA, Revenue
Bonds (Whitemarsh Continuing Care Project),
6% due 2/01/2021 3,675
7,710 Pennsylvania Economic Development Financing Authority,
Exempt Facilities Revenue Bonds (National Gypsum
Company), AMT, Series A, 6.25% due 11/01/2027 8,055
7,490 Philadelphia, Pennsylvania, Gas Works Revenue Refunding
Bonds, 1975 General Ordinance, 17th Series, 5.375%
due 7/01/2022 (e) 7,995
9,630 Pittsburgh, Pennsylvania, GO, Refunding, Series B,
5.25% due 9/01/2017 (e) 10,472
Sayre, Pennsylvania, Health Care Facilities Authority,
Revenue Refunding Bonds (Guthrie Healthcare System),
Series A:
4,615 6.25% due 12/01/2011 (g) 5,090
455 6.25% due 12/01/2015 495
785 6.25% due 12/01/2016 855
385 6.25% due 12/01/2018 417
South Carolina--2.2%
8,000 Georgetown County, South Carolina, Pollution Control
Facilities, Revenue Refunding Bonds (International
Paper Company Project), Series A, 5.125%
due 2/01/2012 8,216
4,250 Medical University Hospital Authority, South Carolina,
Mortgage Hospital Facilities, Revenue Refunding
Bonds, Series A, 5.25% due 8/15/2023 (d)(f)(k) 4,500
Tennessee--4.3%
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 1,820
5,000 McMinn County, Tennessee, IDB, PCR (Calhoun Newsprint
Co. Project), AMT, 7.625% due 3/01/2016 5,025
2,005 Memphis-Shelby County, Tennessee, Airport Authority,
Airport Revenue Bonds, AMT, Series A, 5.50%
due 3/01/2017 (e) 2,096
100 Sevier County, Tennessee, Public Building Authority,
Local Government Public Improvement Revenue Bonds,
VRDN, Series IV-F-1, 3.84% due 6/01/2025 (a)(h) 100
Shelby County, Tennessee, Health, Educational and
Housing Facility Board, Hospital Revenue Refunding
Bonds (Methodist Healthcare) (g):
6,000 6% due 9/01/2012 6,596
3,500 6.25% due 9/01/2012 3,889
Face
Amount Municipal Bonds Value
Tennessee (concluded)
Shelby County, Tennessee, Health, Educational and
Housing Facilities Board Revenue Bonds
(Germantown Village), Series A:
$ 3,550 6.75% due 12/01/2018 $ 3,492
1,450 7% due 12/01/2023 1,451
Texas--13.6%
Austin, Texas, Convention Center Revenue Bonds
(Convention Enterprises Inc.), First Tier, Series A (g):
6,230 6.375% due 1/01/2011 6,675
10,260 6.70% due 1/01/2011 11,208
1,500 Bexar County, Texas, Health Facilities Development
Corporation, Revenue Refunding Bonds (Army
Retirement Residence Project), 6.30%
due 7/01/2012 (g) 1,672
Brazos River Authority, Texas, PCR, Refunding
(TXU Energy Company LLC Project), AMT, Series A:
5,085 7.70% due 4/01/2033 5,720
1,500 6.75% due 4/01/2038 1,620
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 4,026
5,000 Dallas-Fort Worth, Texas, International Airport Facility
Improvement Corporation, Revenue Refunding Bonds,
AMT, Series A-2, 9% due 5/01/2029 6,120
2,440 Gulf Coast, Texas, IDA, Solid Waste Disposal Revenue
Bonds (Citgo Petroleum Corporation Project), AMT,
7.50% due 5/01/2025 2,720
3,000 Gulf Coast Waste Disposal Authority, Texas, Revenue
Refunding Bonds (International Paper Company), AMT,
Series A, 6.10% due 8/01/2024 3,183
700 Harris County, Texas, Health Facilities Development
Corporation, Hospital Revenue Bonds (Texas
Children's Hospital), VRDN, Series B-1, 3.85%
due 10/01/2029 (f)(h) 700
5,790 Houston, Texas, Airport System Revenue Refunding
Bonds, Sub-Lien, AMT, Series A, 5.50%
due 7/01/2023 (e) 6,002
1,500 Houston, Texas, Health Facilities Development
Corporation, Retirement Facility Revenue Bonds
(Buckingham Senior Living Community), Series A,
7% due 2/15/2023 1,658
7,420 Lower Colorado River Authority, Texas, PCR (Samsung
Austin Semiconductor), AMT, 6.95% due 4/01/2030 7,976
2,600 Matagorda County, Texas, Navigation District Number 1,
Revenue Refunding Bonds (Reliant Energy Inc.),
Series C, 8% due 5/01/2029 2,720
2,300 Port Corpus Christi, Texas, Individual Development
Corporation, Environmental Facilities Revenue Bonds
(Citgo Petroleum Corporation Project), AMT, 8.25%
due 11/01/2031 2,352
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 5,137
8,000 Texas State Affordable Housing Corporation, S/F
Mortgage Revenue Bonds (Professional Educators
Home Loan Program), AMT, Series A-3, 5.60%
due 2/01/2039 (l)(m) 8,483
ANNUAL REPORTS MAY 31, 2007
Schedule of Investments (concluded)
BlackRock Muni Intermediate Duration Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
Virginia--4.6%
James City County, Virginia, IDA, Residential Care
Facility Revenue Refunding Bonds, Series A:
$ 3,285 5.75% due 3/01/2017 $ 3,427
1,150 6% due 3/01/2023 1,219
2,250 Loudoun County, Virginia, IDA, IDR, Refunding (Dulles
Airport Marriott Hotel), 7.125% due 9/01/2015 2,266
10,735 Pocahontas Parkway Association, Virginia, Toll
Road Revenue Bonds, Senior-Series A, 5.50%
due 8/15/2008 (g) 11,169
7,800 Tobacco Settlement Financing Corporation of Virginia,
Asset-Backed Revenue Bonds, 5.625%
due 6/01/2015 (g) 8,628
Washington--2.1%
1,500 Seattle, Washington, Municipal Light and Power
Revenue Bonds, 5.30% due 12/01/2020 (f) 1,564
10,000 Snohomish County, Washington, School District
No. 015 (Edmonds), GO, 5% due 12/01/2019 (c) 10,618
Guam--0.8%
4,250 Commonwealth of the Northern Mariana Islands, Guam,
GO, Series A, 6.75% due 10/01/2033 4,817
Puerto Rico--7.8%
1,820 Puerto Rico Commonwealth, Public Improvement, GO,
Refunding, Series B, 5.25% due 7/01/2032 1,921
17,935 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series NN, 5.50% due 7/01/2013 (g) 19,526
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 5,474
Puerto Rico Public Buildings Authority, Government
Facilities Revenue Refunding Bonds:
5,170 Series D, 5.25% due 7/01/2027 5,378
8,000 Series I, 5.50% due 7/01/2021 8,611
3,535 Puerto Rico Public Finance Corporation, Commonwealth
Appropriation Revenue Bonds, Series E, 5.50%
due 8/01/2029 3,709
Face
Amount Municipal Bonds Value
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 $ 2,083
6,750 Virgin Islands Public Finance Authority, Refinery
Facilities Revenue Bonds (Hovensa Refinery),
AMT, 6.125% due 7/01/2022 7,357
Total Municipal Bonds
(Cost--$836,039)--150.9% 866,223
Municipal Bonds Held in Trust (n)
California--3.3%
17,730 California Pollution Control Financing Authority, PCR,
Refunding (Pacific Gas and Electric), AMT, Series A,
5.35% due 12/01/2016 (f) 18,805
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) 11,919
Texas--5.6%
31,240 Harris County, Texas, Toll Road Revenue Refunding Bonds,
Senior Lien, Series A, 5.25% due 8/15/2035 (e) 32,545
Total Municipal Bonds Held in Trust
(Cost--$63,256)--11.0% 63,269
Total Investments (Cost--$899,295*)--161.9% 929,492
Liabilities in Excess of Other Assets--(0.8%) (4,862)
Liabilities for Trust Certificates, Including Interest
Expense Payable--(5.3%) (30,234)
Preferred Stock, at Redemption Value--(55.8%) (320,171)
----------
Net Assets Applicable to Common Stock--100.0% $ 574,225
==========
* The cost and unrealized appreciation (depreciation) of investments
as of May 31, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 869,436
===============
Gross unrealized appreciation $ 32,317
Gross unrealized depreciation (2,296)
---------------
Net unrealized appreciation $ 30,021
===============
(a) AMBAC Insured.
(b) CIFG Insured.
(c) FGIC Insured.
(d) FHA Insured.
(e) FSA Insured.
(f) MBIA Insured.
(g) Prerefunded.
(h) 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.
(i) All or a portion of security held as collateral in connection with open
financial futures contracts.
(j) XL Capital Insured.
(k) Federal Housing Administration/Veterans' Administration Mortgages
packaged by the Federal National Mortgage Association.
(l) FHLMC Collateralized.
(m) FNMA/GNMA Collateralized.
(n) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction
in which the Fund may have 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.
o Financial futures contracts sold as of May 31, 2007 were as follows:
Number of Expiration Face Unrealized
Contracts Issue Date Value Depreciation
350 10-Year U.S. September
Treasury Bond 2007 $ 37,328 $ (97)
See Notes to Financial Statements.
ANNUAL REPORTS MAY 31, 2007
Schedule of Investments
As of May 31, 2007 BlackRock Muni New York Intermediate Duration Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
New York--131.3%
$ 1,280 Albany County, New York, IDA, IDR (Special
Needs Facilities Pooled Program), Series K-1, 5%
due 7/01/2026 (a) $ 1,322
760 Albany, New York, IDA, Civic Facility Revenue Refunding
Bonds (Albany College of Pharmacy Project), Series A,
5.25% due 12/01/2019 793
Cattaraugus County, New York, IDA, Civic Facility
Revenue Bonds (Saint Bonaventure University Project),
Series A:
695 4.90% due 5/01/2016 712
500 5% due 5/01/2023 513
435 Dutchess County, New York, IDA, Civic Facility Revenue
Bonds (Saint Francis Hospital), Series B, 7.25%
due 3/01/2019 475
750 Dutchess County, New York, IDA, Civic Facility Revenue
Refunding Bonds (Bard College), Series A-1, 5%
due 8/01/2022 777
2,000 Erie County, New York, IDA, Life Care Community
Revenue Bonds (Episcopal Church Home), Series A,
5.875% due 2/01/2018 2,053
1,000 Erie County, New York, IDA, Revenue Bonds (Orchard
Park CCRC, Inc. Project), Series A, 6% due 11/15/2026 1,061
3,835 Erie County, New York, IDA, School Facility Revenue
Bonds (City of Buffalo Project), 5.75% due 5/01/2024 (e) 4,033
500 Essex County, New York, IDA, Environmental Improvement
Revenue Bonds (International Paper Company Project),
AMT, Series A, 4.60% due 12/01/2030 476
750 Essex County, New York, IDA, Solid Waste Disposal,
Revenue Refunding Bonds (International Paper Company),
AMT, Series A, 5.20% due 12/01/2023 771
500 Genesee County, New York, IDA, Civic Facility Revenue
Refunding Bonds (United Memorial Medical Center
Project), 4.75% due 12/01/2014 499
1,000 Hempstead Town, New York, IDA, Resource Recovery
Revenue Refunding Bonds (American Refinery-Fuel Co.
Project), 5% due 12/01/2010 1,020
5,000 Long Island Power Authority, New York, Electric
System Revenue Refunding Bonds, Series D, 5%
due 9/01/2025 (g) 5,264
1,000 New York City, New York, City Housing Development
Corporation, M/F Housing Revenue Bonds, AMT,
Series J-2, 4.75% due 11/01/2027 990
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 1,677
1,415 New York City, New York, City IDA, Civic Facility Revenue
Bonds (PSCH Inc. Project), 6.20% due 7/01/2020 1,501
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) 1,225
New York City, New York, City IDA, PILOT Revenue
Bonds:
2,000 (Queens Baseball Stadium Project), 5%
due 1/01/2031 (b) 2,109
2,400 (Yankee Stadium Project), 5% due 3/01/2031 (d) 2,527
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 $ 1,487
1,000 (British Airways Plc Project), 7.625%
due 12/01/2032 1,107
1,000 (Continental Airlines Inc. Project), 8.375%
due 11/01/2016 1,106
1,000 (Terminal One Group Association Project),
5.50% due 1/01/2024 1,072
New York City, New York, GO, Series J:
2,095 5.50% due 6/01/2013 (h) 2,275
1,500 5.25% due 5/15/2018 (g) 1,607
905 5.50% due 6/01/2021 970
1,775 New York City, New York, GO, Sub-Series F-1, 5%
due 9/01/2026 1,849
500 New York City, New York, Trust for Cultural Resources
Revenue Bonds (Museum of American Folk Art), 6.125%
due 7/01/2030 (a) 535
2,750 New York Convention Center Development Corporation,
New York, Revenue Bonds (Hotel Unit Fee Secured), 5%
due 11/15/2024 (b) 2,893
600 New York State Dormitory Authority, Mental Health
Services Facilities Improvement, Revenue Bonds,
Series B, 5% due 2/15/2030 (b) 626
1,000 New York State Dormitory Authority, Non-State
Supported Debt Revenue Bonds (Saint Johns University),
Series A, 5% due 7/01/2027 (g) 1,060
New York State Dormitory Authority, Non-State
Supported Debt, Revenue Refunding Bonds (Mount
Sinai-NYU Center Health System), Series A:
330 6.50% due 7/01/2010 (h) 358
660 6.625% due 7/01/2010 (h) 719
670 6.50% due 7/01/2015 714
340 6.625% due 7/01/2018 363
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 1,167
New York State Dormitory Authority Revenue Bonds:
1,500 (North Shore Long Island Jewish Group), 5%
due 5/01/2013 1,565
1,735 (Winthrop S. Nassau University), 5.50%
due 7/01/2011 1,817
New York State Dormitory Authority Revenue
Refunding Bonds:
1,305 (Lenox Hill Hospital Obligation Group), 5.75%
due 7/01/2017 1,369
1,000 (State University Educational Facilities), Series A,
5.50% due 5/15/2013 1,067
1,790 New York State Dormitory Authority, State Personal
Income Tax Revenue Bonds (Education), Series F, 5%
due 3/15/2030 1,872
1,500 New York State Dormitory Authority, Supported Debt
Revenue Refunding Bonds (Department of Health),
Series A, 5% due 7/01/2025 (c) 1,566
ANNUAL REPORTS MAY 31, 2007
Schedule of Investments (continued)
BlackRock Muni New York Intermediate Duration Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
New York (continued)
$ 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) $ 506
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 998
1,185 New York State, HFA, M/F Housing Revenue Bonds
(Kensico Terrace Apartments), AMT, Series A, 4.75%
due 8/15/2026 1,167
New York State Mortgage Agency, Homeowner
Mortgage Revenue Bonds, AMT:
2,635 Series 130, 4.75% due 10/01/2030 2,596
500 Series 143, 4.85% due 10/01/2027 502
New York State Mortgage Agency, Homeowner
Mortgage Revenue Refunding Bonds, AMT:
1,000 Series 133, 4.95% due 10/01/2021 1,014
1,000 Series 137, 4.70% due 10/01/2031 976
500 Series 140, 4.65% due 10/01/2026 486
2,000 New York State Municipal Bond Bank Agency, Special
School Purpose Revenue Bonds, Series C, 5.25%
due 12/01/2018 2,118
500 New York State Thruway Authority, General Revenue
Refunding Bonds, Series G, 4.75% due 1/01/2030 (e) 511
2,000 New York State Urban Development Corporation
Revenue Bonds, Subordinate Lien, Corporation Purpose,
Series A, 5.125% due 7/01/2019 2,112
Saratoga County, New York, IDA Civic Facility Revenue
Refunding Bonds (The Saratoga Hospital Project),
Series A, (i):
365 4.375% due 12/01/2013 372
380 4.50% due 12/01/2014 388
395 4.50% due 12/01/2015 403
1,000 Schenectady, New York, IDA, Civic Facility Revenue
Refunding Bonds (Union College Project), 5%
due 7/01/2026 1,050
800 Suffolk County, New York, IDA, Continuing Care and
Retirement, Revenue Refunding Bonds (Jeffersons Ferry
Project), 4.625% due 11/01/2016 801
1,000 Tobacco Settlement Financing Corporation of New York,
Asset-Backed Revenue Bonds, Series A-1, 5.25%
due 6/01/2016 1,036
1,000 Tobacco Settlement Financing Corporation of New
York Revenue Bonds, Series C-1, 5.50% due 6/01/2022 1,073
Tompkins County, New York, IDA, Care Community
Revenue Refunding Bonds (Kendal at Ithaca), Series A-2:
250 5.75% due 7/01/2018 253
1,000 6% due 7/01/2024 1,017
1,000 Triborough Bridge and Tunnel Authority, New York,
Revenue Bonds, Series A, 5% due 11/15/2031 1,051
1,250 Utica, New York, IDA, Civic Facility Revenue Bonds
(Utica College Project), Series A, 6.875%
due 6/01/2009 (h) 1,331
Face
Amount Municipal Bonds Value
New York (concluded)
Westchester County, New York, IDA, Civic Facility
Revenue Bonds (Special Needs Facilities Pooled
Program):
$ 515 Series D-1, 6.80% due 7/01/2019 $ 546
305 Series E-1, 5.50% due 7/01/2007 305
750 Yonkers, New York, IDA, Revenue Bonds (Sacred Heart
Associates, LP Project), AMT, Series A, 4.80%
due 10/01/2026 755
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) 1,035
1,000 Guam Government Waterworks Authority, Water
and Wastewater System, Revenue Refunding Bonds,
6% due 7/01/2025 1,089
Puerto Rico--8.7%
Children's Trust Fund Project of Puerto Rico, Tobacco
Settlement Revenue Refunding Bonds:
750 5% due 5/15/2011 771
990 5.375% due 5/15/2033 1,035
1,000 Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Refunding Bonds, Series K, 5% due 7/01/2030 1,031
500 Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax Bonds, Series B, 5%
due 7/01/2031 516
1,000 Puerto Rico Commonwealth, Public Improvement, GO,
Series A, 5.25% due 7/01/2030 1,058
1,000 Puerto Rico Municipal Finance Agency, GO, Series A,
5.25% due 8/01/2025 1,054
U.S. Virgin Islands--3.4%
500 Virgin Islands Government Refinery Facilities, Revenue
Refunding Bonds (Hovensa Coker Project), AMT, 6.50%
due 7/01/2021 560
500 Virgin Islands Public Finance Authority, Refinery
Facilities Revenue Bonds (Hovensa Refinery), AMT, 4.70%
due 7/01/2022 498
1,000 Virgin Islands Public Finance Authority, Senior Lien
Revenue Bonds (Matching Fund Loan Note), Series A,
5.25% due 10/01/2024 1,055
Total Municipal Bonds
(Cost--$89,221)--146.8% 92,031
Shares
Held Short-Term Securities
980 CMA New York Municipal Money Fund, 3.21% (f)(j) 980
Total Short-Term Securities (Cost--$980)--1.6% 980
Total Investments (Cost--$90,201*)--148.4% 93,011
Other Assets Less Liabilities--1.1% 699
Preferred Stock, at Redemption Value--(49.5%) (31,009)
----------
Net Assets--100.0% $ 62,701
==========
ANNUAL REPORTS MAY 31, 2007
Schedule of Investments (concluded)
BlackRock Muni New York Intermediate Duration Fund, Inc.
(In Thousands)
* The cost and unrealized appreciation (depreciation) of investments
as of May 31, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 90,124
===============
Gross unrealized appreciation $ 3,034
Gross unrealized depreciation (147)
---------------
Net unrealized appreciation $ 2,887
===============
(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 (1,361) $37
(g) MBIA Insured.
(h) Prerefunded.
(i) Radian Insured.
(j) Represents the current yield as of May 31, 2007.
o Forward interest rate swaps outstanding as of May 31, 2007
were as follows:
Notional Unrealized
Amount Appreciation
Pay a fixed rate of 3.834% and receive
a floating rate based on 1 week Bond
Market Association rate
Broker, JPMorgan Chase
Expires August 2017 $ 3,750 $2
See Notes to Financial Statements.
ANNUAL REPORTS MAY 31, 2007
Statements of Net Assets
BlackRock BlackRock
Muni Muni New York
Intermediate Intermediate
Duration Duration
As of May 31, 2007 Fund, Inc. Fund, Inc.
Assets
Investments in unaffiliated securities, at value* $ 929,492,124 $ 92,030,492
Investments in affiliated securities, at value** -- 980,248
Cash 99,132 33,290
Interest receivable 15,773,718 1,416,046
Receivables for swaps -- 53,660
Unrealized appreciation on forward interest rate swaps -- 1,821
Prepaid expenses 25,903 12,390
--------------- ---------------
Total assets 945,390,877 94,527,947
--------------- ---------------
Liabilities
Trust certificates 30,035,000 --
Payable for securities purchased 17,703,375 500,000
Dividends payable to Common Stock shareholders 2,320,131 222,941
Payable for interest expense 361,242 --
Payable to investment adviser 305,128 31,837
Payable for variation margin 38,281 --
Payable to other affiliates 11,560 1,200
Accrued expenses 220,716 61,362
--------------- ---------------
Total liabilities 50,995,433 817,340
--------------- ---------------
Preferred Stock
Preferred Stock, at redemption value, par value $.10 per share++ of
AMPS+++ at $25,000 per share liquidation preference 320,170,897 31,009,224
--------------- ---------------
Net Assets Applicable to Common Stock
Net assets applicable to Common Stock $ 574,224,547 $ 62,701,383
=============== ===============
Analysis of Net Assets Applicable to Common Stock
Undistributed investment income--net $ 4,522,630 $ 394,182
Accumulated realized capital losses--net (900,127) (134,161)
Unrealized appreciation--net 30,100,538 2,811,250
--------------- ---------------
Total accumulated earnings--net 33,723,041 3,071,271
--------------- ---------------
Common Stock, par value $.10 per share++++ 3,803,493 420,644
Paid-in capital in excess of par 536,698,013 59,209,468
=============== ===============
Net Assets Applicable to Common Stock $ 574,224,547 $ 62,701,383
=============== ===============
Net asset value per share of Common Stock $ 15.10 $ 14.91
=============== ===============
Market price per share of Common Stock $ 14.85 $ 13.93
=============== ===============
* Identified cost for unaffiliated securities $ 899,294,791 $ 89,221,063
=============== ===============
** Identified cost for affiliated securities -- $ 980,248
=============== ===============
++ 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.
ANNUAL REPORTS MAY 31, 2007
Statements of Operations
BlackRock BlackRock
Muni Muni New York
Intermediate Intermediate
Duration Duration
For the Year Ended May 31, 2007 Fund, Inc. Fund, Inc.
Investment Income
Interest $ 45,208,735 $ 4,429,009
Dividends from affiliates -- 36,876
--------------- ---------------
Total income 45,208,735 4,465,885
--------------- ---------------
Expenses
Investment advisory fees $ 4,954,571 $ 517,220
Interest expense and fees 1,154,741 --
Commission fees 813,894 78,591
Accounting services 256,314 61,965
Transfer agent fees 94,838 27,359
Professional fees 62,164 49,692
Printing and shareholder reports 56,495 6,318
Custodian fees 45,210 8,115
Trustees' fees and expenses 21,284 20,988
Listing fees 23,447 16,572
Pricing fees 28,717 10,206
Other 75,978 27,895
--------------- ---------------
Total expenses before waiver and/or reimbursement 7,587,653 824,921
Waiver and/or reimbursement of expenses (1,351,247) (146,058)
--------------- ---------------
Total expenses after waiver and/or reimbursement 6,236,406 678,863
--------------- ---------------
Investment income--net 38,972,329 3,787,022
--------------- ---------------
Realized & Unrealized Gain (Loss)--Net
Realized gain (loss) on:
Investments--net 2,093,466 174,071
Financial futures contracts and forward interest rate swaps--net (2,233,053) (26,609)
--------------- ---------------
Total realized gain (loss)--net (139,587) 147,462
--------------- ---------------
Change in unrealized appreciation/depreciation on:
Investments--net 7,270,695 840,506
Financial futures contracts and forward interest rate swaps--net (180,141) 1,821
--------------- ---------------
Total change in unrealized appreciation/depreciation--net 7,090,554 842,327
--------------- ---------------
Total realized and unrealized gain--net 6,950,967 989,789
--------------- ---------------
Dividends & Distributions to Preferred Stock Shareholders
Investment income--net (10,462,698) (1,046,683)
Realized gain--net (1,446,608) --
--------------- ---------------
Total dividends and distributions to Preferred Stock shareholders (11,909,306) (1,046,683)
--------------- ---------------
Net Increase in Net Assets Resulting from Operations $ 34,013,990 $ 3,730,128
=============== ===============
See Notes to Financial Statements.
ANNUAL REPORTS MAY 31, 2007
Statements of Changes in Net Assets BlackRock Muni Intermediate Duration Fund, Inc.
For the Year Ended May 31,
Increase (Decrease) in Net Assets: 2007 2006
Operations
Investment income--net $ 38,972,329 $ 39,613,750
Realized gain (loss)--net (139,587) 6,991,310
Change in unrealized appreciation/depreciation--net 7,090,554 (12,769,857)
Dividends and distributions to Preferred Stock shareholders (11,909,306) (9,360,228)
--------------- ---------------
Net increase in net assets resulting from operations 34,013,990 24,474,975
--------------- ---------------
Dividends & Distributions to Common Stock Shareholders
Investment income--net (28,297,991) (32,101,484)
Realized gain--net (4,525,473) (8,646,634)
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions to
Common Stock shareholders (32,823,464) (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 1,190,526 (16,768,011)
Beginning of year 573,034,021 589,802,032
--------------- ---------------
End of year* $ 574,224,547 $ 573,034,021
=============== ===============
* Undistributed investment income--net $ 4,522,630 $ 4,311,098
=============== ===============
See Notes to Financial Statements.
Statements of Changes in Net Assets BlackRock Muni New York Intermediate Duration Fund, Inc.
For the Year Ended May 31,
Increase (Decrease) in Net Assets: 2007 2006
Operations
Investment income--net $ 3,787,022 $ 3,671,782
Realized gain--net 147,462 285,861
Change in unrealized appreciation/depreciation--net 842,327 (1,852,166)
Dividends to Preferred Stock shareholders (1,046,683) (821,449)
--------------- ---------------
Net increase in net assets resulting from operations 3,730,128 1,284,028
--------------- ---------------
Dividends to Common Stock Shareholders
Investment income--net (2,700,534) (2,902,443)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Stock shareholders (2,700,534) (2,902,443)
--------------- ---------------
Net Assets Applicable to Common Stock
Total increase (decrease) in net assets applicable to Common Stock 1,029,594 (1,618,415)
Beginning of year 61,671,789 63,290,204
--------------- ---------------
End of year* $ 62,701,383 $ 61,671,789
=============== ===============
* Undistributed investment income--net $ 394,182 $ 354,377
=============== ===============
See Notes to Financial Statements.
ANNUAL REPORTS MAY 31, 2007
Financial Highlights BlackRock Muni Intermediate Duration Fund, Inc.
For the Period
For the Year August 1, 2003++
The following per share data and ratios have been derived Ended May 31, to May 31,
from information provided in the financial statements. 2007 2006 2005 2004
Per Share Operating Performance
Net asset value, beginning of period $ 15.07 $ 15.51 $ 14.52 $ 14.33
------------ ------------ ------------ ------------
Investment income--net 1.03+++++ 1.04+++++ 1.02+++++ .79
Realized and unrealized gain (loss)--net .18 (.15) 1.15 .21
Dividends and distributions to Preferred Stock shareholders:
Investment income--net (.28) (.21) (.11) (.06)
Realized gain--net (.04) (.04) (.02) --
------------ ------------ ------------ ------------
Total from investment operations .89 .64 2.04 .94
------------ ------------ ------------ ------------
Less dividends and distributions to Common Stock shareholders:
Investment income--net (.74) (.84) (.86) (.65)
Realized gain--net (.12) (.23) (.19) --
------------ ------------ ------------ ------------
Total dividends and distributions to Common Stock shareholders (.86) (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 $ 15.10 $ 15.07 $ 15.51 $ 14.52
============ ============ ============ ============
Market price per share, end of period $ 14.85 $ 14.52 $ 13.94 $ 13.10
============ ============ ============ ============
Total Investment Return**
Based on net asset value per share 6.14% 4.71% 15.36% 6.09%+++
============ ============ ============ ============
Based on market price per share 8.34% 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
and fees*** .87% .87% .84% .75%*
============ ============ ============ ============
Total expenses, net of waiver*** 1.07% 1.00% .85% .75%*
============ ============ ============ ============
Total expenses*** 1.31% 1.24% 1.07% 1.03%*
============ ============ ============ ============
Investment income--net*** 6.71% 6.82% 6.77% 6.51%*
============ ============ ============ ============
Amount of dividends to Preferred Stock shareholders 1.80% 1.36% .74% .48%*
============ ============ ============ ============
Investment income--net, to Common Stock shareholders 4.91% 5.46% 6.03% 6.03%*
============ ============ ============ ============
Ratios Based on Average Net Assets Applicable to Preferred Stock
Dividends to Preferred Stock shareholders 3.27% 2.51% 1.50% .97%*
============ ============ ============ ============
Supplemental Data
Net assets applicable to Common Stock, end of period (in thousands) $ 574,225 $ 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 12% 49% 54% 70%
============ ============ ============ ============
Leverage
Asset coverage per $1,000 $ 2,794 $ 2,791 $ 3,069 $ 2,937
============ ============ ============ ============
Dividends Per Share on Preferred Stock Outstanding
Series M7++++--Investment income--net $ 809 $ 613 $ 372 $ 190
============ ============ ============ ============
Series T7++++--Investment income--net $ 818 $ 624 $ 377 $ 192
============ ============ ============ ============
Series W7++++--Investment income--net $ 818 $ 623 $ 374 $ 188
============ ============ ============ ============
Series TH7++++--Investment income--net $ 825 $ 631 $ 375 $ 188
============ ============ ============ ============
Series F7++++--Investment income--net $ 809 $ 611 $ 373 $ 189
============ ============ ============ ============
Series TH28++++++--Investment income--net $ 826 $ 580 -- --
============ ============ ============ ============
* Annualized.
** Total investment returns based on market value, which can be significantly greater
or lesser than 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.
ANNUAL REPORTS MAY 31, 2007
Financial Highlights (concluded) BlackRock Muni New York Intermediate Duration Fund, Inc.
For the Period
For the Year August 1, 2003++
The following per share data and ratios have been derived Ended May 31, to May 31,
from information provided in the financial statements. 2007 2006 2005 2004
Per Share Operating Performance
Net asset value, beginning of period $ 14.66 $ 15.05 $ 14.45 $ 14.33
------------ ------------ ------------ ------------
Investment income--net .90+++++ .87+++++ .85+++++ .68
Realized and unrealized gain (loss)--net .24 (.37) .58 .19
Dividends to Preferred Stock shareholders from investment income--net (.25) (.20) (.11) (.06)
------------ ------------ ------------ ------------
Total from investment operations .89 .30 1.32 .81
------------ ------------ ------------ ------------
Less dividends to Common Stock shareholders from investment income--net (.64) (.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 $ 14.91 $ 14.66 $ 15.05 $ 14.45
============ ============ ============ ============
Market price per share, end of period $ 13.93 $ 13.03 $ 13.44 $ 12.79
============ ============ ============ ============
Total Investment Return**
Based on net asset value per share 6.57% 2.52% 9.99% 4.71%+++
============ ============ ============ ============
Based on market price per share 12.02% 2.03% 10.97% (11.46%)+++
============ ============ ============ ============
Ratios Based on Average Net Assets Applicable to Common Stock
Total expenses, net of waiver and/or reimbursement*** 1.08% 1.10% 1.15% .81%*
============ ============ ============ ============
Total expenses*** 1.31% 1.33% 1.38% 1.19%*
============ ============ ============ ============
Total investment income--net*** 6.01% 5.89% 5.75% 5.40%*
============ ============ ============ ============
Amount of dividends to Preferred Stock shareholders 1.66% 1.32% .77% .45%*
============ ============ ============ ============
Investment income--net, to Common Stock shareholders 4.35% 4.57% 4.98% 4.95%*
============ ============ ============ ============
Ratios Based on Average Net Assets Applicable to Preferred Stock
Dividends to Preferred Stock shareholders 3.38% 2.65% 1.55% .96%*
============ ============ ============ ============
Supplemental Data
Net assets applicable to Common Stock, end of period (in thousands) $ 62,701 $ 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 29% 49% 17% 21%
============ ============ ============ ============
Leverage
Asset coverage per $1,000 $ 3,023 $ 2,989 $ 3,042 $ 2,961
============ ============ ============ ============
Dividends Per Share on Preferred Stock Outstanding
Series F7++++--Investment income--net $ 844 $ 662 $ 389 $ 188
============ ============ ============ ============
* Annualized.
** Total investment returns based on market value, which can be significantly greater
or lesser than 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.
ANNUAL REPORTS MAY 31, 2007
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. 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 respective Board of Directors. Such valuations and procedures
are reviewed periodically by the respective 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 Funds'
pricing service. 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 respective 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.
* 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.
ANNUAL REPORTS MAY 31, 2007
Notes to Financial Statements (continued)
* 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--BlackRock Muni Intermediate Duration Fund,
Inc. invests 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. The 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 Fund's schedule of investments and the proceeds from the
transactions are reported as liability for trust certificates. 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 Fund 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 Fund include the right of the Fund (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 Fund. At May 31, 2007, in reference to BlackRock
Muni Intermediate Duration Fund, Inc., the aggregate value of the underlying
municipal securities transferred to TOBs was $63,269,180, the related liability
for trust certificates was $30,035,000 and the range of interest rates was
3.26% to 4.02%. BlackRock Muni New York Intermediate Duration Fund, Inc. did
not invest in these types of securities for the year ended May 31, 2007.
Financial transactions executed through TOBs generally will underperform 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, a
Fund's investments in TOB Residuals likely will adversely affect a Fund's
investment income--net and distributions to shareholders. Fluctuations in the
market value of municipal securities deposited into the TOB may adversely
affect the Fund's 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 Fund's management believes that the Fund's 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.
(e) Security transactions and investment income--Security transactions are
recorded on the dates the trans-actions 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.
ANNUAL REPORTS MAY 31, 2007
Notes to Financial Statements (continued)
(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 released FASB Interpretation No. 48 ("FIN 48"), "Accounting for
Uncertainty in Income Taxes". FIN 48 provides guidance for how uncertain tax
positions should be recognized, measured, presented and disclosed in financial
statements. FIN 48 requires the evaluation of tax positions taken in the course
of preparing the Fund's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
benefits of positions not deemed to meet the more-likely-than-not threshold
would be booked as a tax expense in the current year and recognized as: a
liability for unrecognized tax benefits; a reduction of an income tax refund
receivable; a reduction of deferred tax asset; an increase in deferred tax
liability; or a combination thereof. Adoption of FIN 48 is required for the
last net asset value calculation in the first required financial statement
reporting period for fiscal years beginning after December 15, 2006. The impact
on each Fund's financial statements, if any, is currently being assessed.
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. At this time, management is evaluating the implications of FAS
157 and its impact on each Fund's financial statements, if any, has not been
determined.
In addition, in February 2007, FASB issued Statement of Financial Accounting
Standards No. 159, "The Fair Value Option for Financial Assets and Financial
Liabilities" ("FAS 159"), which is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also
elects to apply the provisions of FAS 157. FAS 159 permits entities to choose
to measure many financial instruments and certain other items at fair value
that are not currently required to be measured at fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. At this time, management is evaluating
the implications of FAS 159 and its impact on each Fund's financial statements,
if any, has not been determined.
(i) Reclassifications--BlackRock Muni Intermediate Duration Fund, Inc.--U.S.
generally accepted accounting principles require that certain components of net
assets be adjusted to reflect permanent differences between financial and tax
reporting. Accordingly, during the current year, $162 has been reclassified
between paid-in capital in excess of par and accumulated net realized capital
losses and $108 has been reclassified between undistributed net investment
income and accumulated net realized capital losses as a result of permanent
differences attributable to distributions paid in excess of taxable income.
These reclassifications have no effect on net assets or net asset value per
share.
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
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
each Fund's manager. The general partner of FAM is an indirect, wholly owned
subsidiary of Merrill Lynch, which is the limited partner.
ANNUAL REPORTS MAY 31, 2007
Notes to Financial Statements (continued)
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%
The Manager 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 $ 47,047
For the period September 30, 2006 to May 31, 2007, 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. $3,293,976 $ 898,357
BlackRock Muni New York
Intermediate Duration
Fund, Inc. $ 344,715 $ 94,012
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 September 30, 2006
September 29, 2006 to May 31, 2007
Reimbursement Reimbursement
by FAM by the Manager
$2,660 $2,339
In addition, the Manager has entered into a sub-advisory agreement with
BlackRock Investment Management, LLC, ("BIM"), an affiliate of the Manager,
with respect to each Fund, under which the Manager pays BIM for services it
provides a monthly fee that is a percentage of the management fee paid by each
Fund to the Manager.
For the year ended May 31, 2006, Merrill Lynch, Pierce, Fenner & Smith
Incorporated ("MLPF&S"), a wholly owned subsidiary of Merrill Lynch and an
affiliate of FAM, received underwriting fees of $350,000 in connection with the
issuance of BlackRock Muni Intermediate Duration Fund, Inc.'s Preferred Stock.
For the year ended May 31, 2007, 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 September 30, 2006
September 29, 2006 to May 31, 2007
Reimbursement Reimbursement
to FAM to the Manager
BlackRock Muni
Intermediate Duration
Fund, Inc. $6,970 $11,560
BlackRock Muni
New York Intermediate
Duration Fund, Inc. $ 722 $ 1,852
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.
ANNUAL REPORTS MAY 31, 2007
Notes to Financial Statements (continued)
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
year ended May 31, 2007 were as follows:
BlackRock
BlackRock Muni Muni New York
Intermediate Intermediate
Duration Duration
Fund, Inc. Fund, Inc.
Total Purchases $120,162,063 $28,985,480
Total Sales $110,010,961 $27,026,410
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 common stock without approval of the holders
of Common Stock.
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
to receive cash dividends at an annual rate that may vary for the successive
dividend periods. The yields in effect at May 31, 2007 were as follows:
BlackRock
BlackRock Muni Muni New York
Intermediate Intermediate
Duration Duration
Fund, Inc. Fund, Inc.
Series M7 3.75% --
Series T7 3.70% --
Series W7 3.82% --
Series TH7 3.75% --
Series F7 3.78% 3.62%
Series TH28 3.60% --
BlackRock Muni Intermediate Duration Fund, Inc.
Shares issued and outstanding during the year ended May 31, 2007 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 years ended May 31, 2007 and 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 year ended May 31, 2007, MLPF&S earned $550,534 relating
to BlackRock Muni Intermediate Duration Fund, Inc. and $61,173 relating to
BlackRock Muni New York Intermediate Duration Fund, Inc., as commissions.
5. Distributions to Shareholders:
On July 2, 2007, each Fund paid a tax-exempt income dividend to holders of
Common Stock to shareholders of record on June 15, 2007. The amounts of the
tax-exempt income dividends per share was as follows:
Per Share
Amount
BlackRock Muni Intermediate Duration Fund, Inc. $.061000
BlackRock Muni New York Intermediate
Duration Fund, Inc. $.053000
BlackRock Muni Intermediate Duration Fund, Inc.
The tax character of distributions paid during the fiscal years
ended May 31, 2007 and May 31, 2006 was as follows:
5/31/2007 5/31/2006
Distributions paid from:
Tax-exempt income $ 38,760,689 $ 39,996,579
Ordinary income 4,118,763 1,319,480
Net long-term capital gains 1,853,318 8,792,287
--------------- ---------------
Total distributions $ 44,732,770 $ 50,108,346
=============== ===============
As of May 31, 2007, the components of accumulated earnings on a tax
basis were as follows:
Undistributed tax-exempt income--net $ 4,019,870
Undistributed long-term capital gains--net --
---------------
Total undistributed earnings--net 4,019,870
Capital loss carryforward (318,382)*
Unrealized gains--net 30,021,553**
---------------
Total accumulated earnings--net $ 33,723,041
===============
* On May 31, 2007, the Fund had a net capital loss carryforward
of $318,382, all of which expires in 2015. This amount will be
available to offset like amounts of any future taxable gains.
** The difference between book-basis and tax-basis net unrealized
gains is attributable primarily to the tax deferral of losses on wash
sales, the difference between book and tax amortization methods
for premiums and discounts on fixed income securities, the realization
for tax purposes of unrealized gains (losses) on certain futures
contracts and the differences between book and tax treatment of
residual interests in tender option bonds.
ANNUAL REPORTS MAY 31, 2007
Notes to Financial Statements (concluded)
BlackRock Muni New York Intermediate Duration Fund, Inc.
The tax character of distributions paid during the fiscal years
ended May 31, 2007 and May 31, 2006 was as follows:
5/31/2007 5/31/2006
Distributions paid from:
Tax-exempt income $ 3,747,217 $ 3,723,892
--------------- ---------------
Total distributions $ 3,747,217 $ 3,723,892
=============== ===============
As of May 31, 2007, the components of accumulated earnings on a tax
basis were as follows:
Undistributed tax-exempt income--net $ 316,210
Undistributed long-term capital gains--net --
---------------
Total undistributed earnings--net 316,210
Capital loss carryforward (134,161)*
Unrealized gains--net 2,889,222**
---------------
Total accumulated earnings--net $ 3,071,271
===============
* On May 31, 2007, the Fund had a net capital loss carryforward
of $134,161, all of which expires in 2013. This amount will be
available to offset like amounts of any future taxable gains.
** The difference between book-basis and tax-basis net unrealized
gains is attributable primarily to the difference between book and
tax amortization methods for premiums and discounts on fixed
income securities.
6. Restatement Information:
Subsequent to the initial issuance of its May 31, 2006 financial statements,
BlackRock Muni Intermediate Duration Fund, Inc. determined that the criteria
for sale accounting in FAS 140 had not been met for certain transfers of
municipal bonds, and that these transfers should have been accounted for as
secured borrowings rather than as sales. As a result, certain financial
highlights for the year ended May 31, 2005 have been restated 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.
BlackRock Muni Intermediate Duration Fund, Inc.
Financial Highlights
For the Year Ended May 31, 2005
2005
Previously
Reported Restated
Total expenses, net of waiver*** .84% .85%
Portfolio turnover 54.55% 54%
*** Do not reflect the effect of dividends to Preferred Stock
shareholders.
ANNUAL REPORTS MAY 31, 2007
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
of BlackRock Muni Intermediate Duration Fund, Inc.:
We have audited the accompanying statement of net assets, including the
schedule of investments, of BlackRock Muni Intermediate Duration Fund, Inc.
(formerly Muni Intermediate Duration Fund, Inc.) (the "Fund") as of May 31,
2007, and the related statement of operations for the year then ended and the
statements of changes in net assets and the financial highlights for each of
the two years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on the financial statements and
financial highlights based on our audits. The financial highlights for the year
ended May 31, 2005 (before the restatement described in Note 6) were audited by
other auditors whose report, dated July 13, 2005, expressed a qualified opinion
on the financial highlights because of the errors described in Note 6. The
financial highlights for the period August 1, 2003 (commencement of operations)
to May 31, 2004 were audited by other auditors whose report, dated July 13,
2005, ex-pressed an unqualified opinion on those financial highlights.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. The Fund is not required to have, nor were we engaged to perform,
an audit of its internal control over financial reporting. Our audit included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Fund's
internal control over financial reporting. Accordingly, we express no such
opinion. An audit also includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. Our procedures
included confirmation of securities owned as of May 31, 2007, by correspondence
with the custodian and brokers; where replies were not received from brokers,
we performed other auditing procedures. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights of BlackRock
Muni Intermediate Duration Fund, Inc. referred to above, present fairly, in all
material respects, its financial position as of May 31, 2007, the results of
its operations for the year then ended and the changes in its net assets and
its financial highlights for each of the two years in the period then ended, in
conformity with accounting principles generally accepted in the United States
of America.
We also have audited the adjustments, applied by management, to restate certain
financial highlights for the year ended May 31, 2005 to correct the errors
described in Note 6. These adjustments are the responsibility of the Fund's
management. The audit procedures that we performed with respect to the
adjustments included such tests as we considered necessary in the circumstances
and were designed to obtain reasonable assurance about whether the adjustments
are appropriate and have been properly applied, in all material respects, to
the restated financial highlights for the year ended May 31, 2005. We did not
perform any audit procedures designed to assess whether any additional
adjustments to such financial highlights might be necessary in order for such
financial highlights to be presented in conformity with generally accepted
accounting principles. In our opinion, the adjustments to the financial
highlights for the year ended May 31, 2005 described in Note 6 are appropriate
and have been properly applied, in all material respects. However, we were not
engaged to audit, review, or apply any procedures to such financial highlights
other than with respect to the adjustments described in Note 6 and,
accordingly, we do not express an opinion or any other form of assurance on
such financial highlights.
Deloitte & Touche LLP
Princeton, New Jersey
July 20, 2007
ANNUAL REPORTS MAY 31, 2007
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
of BlackRock Muni New York Intermediate Duration Fund, Inc.:
We have audited the accompanying statement of net assets, including the
schedule of investments, of BlackRock Muni New York Intermediate Duration Fund,
Inc. (formerly Muni New York Intermediate Duration Fund, Inc.) (the "Fund") as
of May 31, 2007, and the related statement of operations, the statement of
changes in net assets, and the financial highlights for the year then ended.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on the
financial statements and financial highlights based on our audit. The statement
of changes in net assets for the year ended May 31, 2006 and the financial
highlights for each of the two years in the period then ended and for the
period August 1, 2003 (commencement of operations) to May 31, 2004 were audited
by other auditors whose report, dated July 14, 2006, expressed an unqualified
opinion on that financial statement and financial highlights.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether
the financial statements and financial highlights are free of material
misstatement. The Fund is not required to have, nor were we engaged to perform,
an audit of its internal control over financial reporting. Our audit included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Fund's
internal control over financial reporting. Accordingly, we express no such
opinion. An audit also includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. Our procedures
included confirmation of securities owned as of May 31, 2007, by correspondence
with the custodian and brokers; where replies were not received from brokers,
we performed other auditing procedures. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above, present fairly, in all material respects, the financial position of
BlackRock Muni New York Intermediate Duration Fund, Inc. as of May 31, 2007,
the results of its operations, the changes in its net assets, and its financial
highlights for the year then ended, in conformity with accounting principles
generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
July 20, 2007
Fund Certifications
In September 2006, BlackRock Muni Intermediate Duration Fund, Inc. and
BlackRock Muni New York Intermediate Duration Fund, Inc. filed their Chief
Executive Officer Certifications with the New York Stock Exchange pursuant to
Section 303A.12(a) of the New York Stock Exchange Corporate Governance Listing
Standards.
The Funds' Chief Executive Officer and Chief Financial Officer Certifications
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 were filed with the
Funds' Forms N-CSR and are available on the Securities and Exchange
Commission's Web site at http://www.sec.gov.
ANNUAL REPORTS MAY 31, 2007
Automatic Dividend Reinvestment Plan
How the Plan Works--The Funds offer a Dividend Reinvestment Plan (the "Plan")
under which income and capital gains dividends paid by each Fund are
automatically reinvested in additional shares of Common Stock of each Fund. The
Plan is administered on behalf of the shareholders by Computershare Trust
Company, N.A. (the "Plan Agent"). Under the Plan, whenever the Funds declare a
dividend, participants in the Plan will receive the equivalent in shares of
Common Stock of each Fund. The Plan Agent will acquire the shares for the
participant's account either (i) through receipt of additional unissued but
authorized shares of each Fund ("newly issued shares") or (ii) by purchase of
outstanding shares of Common Stock on the open market on the New York Stock
Exchange or elsewhere. If, on the dividend payment date, each Fund's net asset
value per share is equal to or less than the market price per share plus
estimated brokerage commissions (a condition often referred to as a "market
premium"), the Plan Agent will invest the dividend amount in newly issued
shares. If the Funds' net asset value per share is greater than the market
price per share (a condition often referred to as a "market discount"), the
Plan Agent will invest the dividend amount by purchasing on the open market
additional shares. If the Plan Agent is unable to invest the full dividend
amount in open market purchases, or if the market discount shifts to a market
premium during the purchase period, the Plan Agent will invest any uninvested
portion in newly issued shares. The shares acquired are credited to each
shareholder's account. The amount credited is determined by dividing the dollar
amount of the dividend by either (i) when the shares are newly issued, the net
asset value per share on the date the shares are issued or (ii) when shares are
purchased in the open market, the average purchase price per share.
Participation in the Plan--Participation in the Plan is automatic, that is, a
shareholder is automatically enrolled in the Plan when he or she purchases
shares of Common Stock of the Funds unless the shareholder specifically elects
not to participate in the Plan. Shareholders who elect not to participate will
receive all dividend distributions in cash. Shareholders who do not wish to
participate in the Plan must advise the Plan Agent in writing (at the address
set forth below) that they elect not to participate in the Plan. Participation
in the Plan is completely voluntary and may be terminated or resumed at any
time without penalty by writing to the Plan Agent.
Benefits of the Plan--The Plan provides an easy, convenient way for
shareholders to make additional, regular investments in the Funds. The Plan
promotes a long-term strategy of investing at a lower cost. All shares acquired
pursuant to the Plan receive voting rights. In addition, if the market price
plus commissions of each Fund's shares is above the net asset value,
participants in the Plan will receive shares of the Fund for less than they
could otherwise purchase them and with a cash value greater than the value of
any cash distribution they would have received. However, there may not be
enough shares available in the market to make distributions in shares at prices
below the net asset value. Also, since each Fund does not redeem shares, the
price on resale may be more or less than the net asset value.
Plan Fees--There are no enrollment fees or brokerage fees for participating in
the Plan. The Plan Agent's service fees for handling the reinvestment of
distributions are paid for by the Fund. However, brokerage commissions may be
incurred when the Fund purchases shares on the open market and shareholders
will pay a pro rata share of any such commissions.
Tax Implications--The automatic reinvestment of dividends and distributions
will not relieve participants of any federal, state or local income tax that
may be payable (or required to be withheld) on such dividends. Therefore,
income and capital gains may still be realized even though shareholders do not
receive cash.
Contact Information--All correspondence concerning the Plan, including any
questions about the Plan, should be directed to the Plan Agent at
Computershare Trust Company, N.A., P.O. Box 43010, Providence, RI 02940-3010,
Telephone: 800-426-5523.
ANNUAL REPORTS MAY 31, 2007
Officers and Directors
Number of
Funds and
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Held with Time Overseen by Held by
Name, Address & Age Funds Served Principal Occupation(s) During Past 5 Years Director Director
Interested Director
Robert C. Doll, Jr.* Fund 2005 to Vice Chairman and Director of BlackRock, Inc., 122 Funds None
P.O. Box 9011 President present Global Chief Investment Officer for Equities, 168 Portfolios
Princeton, and Chairman of the BlackRock Retail Operating
NJ 08543-9011 Director Committee, and member of the BlackRock Executive
Age: 52 Committee since 2006; President of the funds
advised by Merrill Lynch Investment Managers, L.P.
("MLIM") and its affiliates ("MLIM/FAM-advised
funds") from 2005 to 2006 and Chief Investment
Officer thereof from 2001 to 2006; President of
MLIM and Fund Asset Management, L.P. ("FAM")
from 2001 to 2006; Co-Head (Americas Region)
thereof from 2000 to 2001 and Senior Vice
President from 1999 to 2001; President and Director
of Princeton Services, Inc. ("Princeton Services")
and President of Princeton Administrators, L.P.
("Princeton Administrators") from 2001 to 2006;
Chief Investment Officer of OppenheimerFunds, Inc.
in 1999 and Executive Vice President thereof from
1991 to 1999.
* Mr. Doll is a director, trustee or member of an advisory board of certain other
investment companies for which BlackRock Advisors, LLC and its affiliates act
as investment adviser. Mr. Doll is an "interested person," as defined in the
Investment Company Act, of the Fund based on his positions with BlackRock, Inc.
and its affiliates. Directors serve until their resignation, removal or death, or
until December 31 of the year in which they turn 72. As Fund President, Mr. Doll
serves at the pleasure of the respective Board of Directors.
ANNUAL REPORTS MAY 31, 2007
Officers and Directors (continued)
Number of
Funds and
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Held with Time Overseen by Held by
Name, Address & Age Funds Served Principal Occupation(s) During Past 5 Years Director Director
Independent Directors*
Donald W. Burton Director 2003 to Managing General Partner of The Burton 21 Funds Knology, Inc.
P.O. Box 9095 present Partnership, Limited Partnership (an investment 38 Portfolios (telecommuni-
Princeton, partnership) since 1979; Managing General cations);
NJ 08543-9095 Partner of The South Atlantic Venture Funds since Symbion, Inc.
Age: 63 1983; Member of the Investment Advisory Council (healthcare);
of the Florida State Board of Administration and Capital
since 2001. Southwest
(financial)
John Francis O'Brien Director 2004 to President and Chief Executive Officer of 21 Funds Cabot
P.O. Box 9095 present Allmerica Financial Corporation (financial 38 Portfolios Corporation
Princeton, services holding company) from 1995 to 2002 and (chemicals);
NJ 08543-9095 Director from 1995 to 2003; President of LKQ Corporation
Age: 64 Allmerica Investment Management Co., Inc. (auto parts
(investment adviser) from 1989 to 2002, Director manufacturing);
from 1989 to 2002 and Chairman of the Board from and TJX
1989 to 1990; President, Chief Executive Officer Companies, Inc.
and Director of First Allmerica Financial Life (retailer)
Insurance Company from 1989 to 2002 and Director
of various other Allmerica Financial companies
until 2002; Director from 1989 to 2006, Member
of the Governance Nominating Committee from 2004
to 2006, Member of the Compensation Committee from
1989 to 2006 and Member of the Audit Committee
from 1990 to 2004 of ABIOMED; Director, Member
of the Governance and Nomination Committee
and Member of the Audit Committee of Cabot
Corporation since 1990; Director and Member of
the Audit Committee and Compensation Committee
of LKQ Corporation since 2003; Lead Director of TJX
Companies, Inc. since 1996; Trustee of the Woods
Hole Oceanographic Institute since 2003. Director,
Ameresco, Inc. since 2006. Director, Boston Lyric
Opera since 2002.
David H. Walsh Director 2003 to Director, Ruckleshaus Institute and Haub School 21 Funds None
P.O. Box 9095 present of Natural Resources at the University of 38 Portfolios
Princeton, Wyoming since 2006; Consultant with Putnam
NJ 08543-9095 Investments from 1993 to 2003, and employed in
Age: 65 various capacities therewith from 1973 to 1992;
Director, Massachusetts Audubon Society from 1990
to 1997; Director, The National Audubon Society
from 1998 to 2005; Director, The American Museum
of Fly Fishing since 1997.
Fred G. Weiss** Director 2003 to Managing Director of FGW Associates since 21 Funds Watson
P.O. Box 9095 present 1997; Vice President, Planning, Investment and 38 Portfolios Pharmaceu-
Princeton, Development of Warner Lambert Co. from 1979 ticals, Inc.
NJ 08543-9095 to 1997; Director of the Michael J. Fox Foundation (pharmaceu-
Age: 65 for Parkinson's Research since 2000; Director of tical
BTG International Plc (a global technology company)
commercialization company) since 2001.
* Directors serve until their resignation, removal or death, or until December 31
of the year in which they turn 72.
** Chairman of the Board of Directors and the Audit Committee.
ANNUAL REPORTS MAY 31, 2007
Officers and Directors (concluded)
Position(s) Length of
Held with Time
Name, Address & Age Funds Served Principal Occupation(s) During Past 5 Years
Fund Officers*
Donald C. Burke Vice 2003 to Managing Director of BlackRock, Inc. since 2006; Managing Director of Merrill
P.O. Box 9011 President present Lynch Investment Managers, L.P. ("MLIM") and Fund Asset Management, L.P.
Princeton, and ("FAM") in 2006; First Vice President of MLIM and FAM from 1997 to 2005 and
NJ 08543-9011 Treasurer Treasurer thereof from 1999 to 2006; Vice President of MLIM and FAM from 1990
Age: 46 to 1997.
Karen Clark Fund Chief 2007 to Managing Director of BlackRock, Inc. and Chief Compliance Officer of certain
P.O. Box 9011 Compliance present BlackRock-advised funds since 2007; Director of BlackRock, Inc. from 2005 to
Princeton, Officer 2007; Principal and Senior Compliance Officer, State Street Global Advisors,
NJ 08543-9011 from 2001 to 2005; Principal Consultant, PricewaterhouseCoopers, LLP from 1998
Age: 42 to 2001; and Branch Chief, Division of Investment Management and Office of
Compliance Inspections and Examinations, U.S. Securities and Exchange
Commission, from 1993 to 1998.
Alice A. Pellegrino Secretary 2004 to Director of BlackRock, Inc. since 2006; Director (Legal Advisory) of MLIM from
P.O. Box 9011 present 2002 to 2006; Vice President of MLIM from 1999 to 2002; Attorney associated
Princeton, with MLIM from 1997 to 1999; Secretary of MLIM, FAM, FAM Distributors, Inc.
NJ 08543-9011 and Princeton Services from 2004 to 2006.
Age: 47
* Officers of the Funds serve at the pleasure of the respective Board of Directors.
Custodian
State Street Bank and
Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agents
Common Stock: Preferred Stock:
Computershare Trust The Bank of New York
Company, N.A. 101 Barclay Street - 7 West
P.O. Box 43010 New York, NY 10286
Providence, RI 02940-3010
800-426-5523
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.
ANNUAL REPORTS MAY 31, 2007
Change in Fund's Independent Registered Public Accounting Firm
On August 28, 2006, Ernst & Young LLP ("E&Y") resigned as the Independent
Registered Public Accounting Firm of BlackRock Muni Intermediate Duration Fund,
Inc. and BlackRock Muni New York Intermediate Duration Fund, Inc. (the "Funds")
because it was determined that E&Y is not independent of BlackRock, Inc. and
the Funds.
E&Y's reports on the financial statements of the Funds for the prior two fiscal
years did not contain an adverse opinion or a disclaimer of opinion and except
for the restatement information contained in Note 6 to the Financial
Statements, were not qualified or modified as to uncertainty, audit scope or
accounting principles.
In connection with its audits for the two most recent fiscal years and through
August 28, 2006 (1) there were no disagreements with E&Y on any matter of
accounting principle or practice, financial statement disclosure or auditing
scope or procedure, whereby such disagreements, if not resolved to the
satisfaction of E&Y, would have caused them to make reference to the subject
matter of the disagreements in connection with their report on the financial
statements for such years; and (2) there have been no reportable events (as
defined in item 304(a)(1)(v) of Regulation S-K).
The Audit Committee of the Funds' Board of Directors approved the engagement of
Deloitte & Touche llp as the Funds' Independent Registered Public Accounting
Firm for the fiscal year ended May 31, 2007.
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 non-public 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 non-public 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 non-affiliated third parties any non-
public personal information about its Clients, except as permitted by law or as
is necessary to respond to regulatory requests or to service Client accounts.
These non-affiliated 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 non-
public 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 non-
public personal information of its Clients, including procedures relating to
the proper storage and disposal of such information.
ANNUAL REPORTS MAY 31, 2007
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.
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.
Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:
Please contact your financial advisor to enroll. Please note that not all
investment advisers, banks or brokerages may offer this service.
ANNUAL REPORTS MAY 31, 2007
Item 2 - Code of Ethics - The registrant has adopted a code of ethics, as of
the end of the period covered by this report, that applies to the
registrant's principal executive officer, principal financial
officer and principal accounting officer, or persons performing
similar functions. A copy of the code of ethics is available
without charge at www.blackrock.com.
Item 3 - Audit Committee Financial Expert - The registrant's board of
directors has determined that (i) the registrant has the following
audit committee financial experts serving on its audit committee and
(ii) each audit committee financial expert is independent: (1)
Donald W. Burton, (2) John F. O'Brien, (3) David H. Walsh and (4)
Fred G. Weiss.
Item 4 - Principal Accountant Fees and Services
Note: The Fund changed auditors effective August, 28, 2006. Prior
to that date, Ernst & Young LLP provided services as the Fund's
independent registered public accountant.
(a) Audit Fees - Fiscal Year Ended May 31, 2007 - $32,500
Fiscal Year Ended May 31, 2006 - $54,250
(b) Audit-Related Fees - Fiscal Year Ended May 31, 2007 - $3,500
Fiscal Year Ended May 31, 2006 - $3,500
(c) Tax Fees - Fiscal Year Ended May 31, 2007 - $6,100
Fiscal Year Ended May 31, 2006 - $6,000
The nature of the services include tax compliance, tax advice and
tax planning.
(d) All Other Fees - Fiscal Year Ended May 31, 2007 - $0
Fiscal Year Ended May 31, 2006 - $0
(e)(1) The registrant's audit committee (the "Committee") has
adopted policies and procedures with regard to the pre-approval of
services. Audit, audit-related and tax compliance services provided
to the registrant on an annual basis require specific pre-approval
by the Committee. The Committee also must approve other non-audit
services provided to the registrant and those non-audit services
provided to the registrant's affiliated service providers that
relate directly to the operations and the financial reporting of the
registrant. Certain of these non-audit services that the Committee
believes are a) consistent with the SEC's auditor independence rules
and b) routine and recurring services that will not impair the
independence of the independent accountants may be approved by the
Committee without consideration on a specific case-by-case basis
("general pre-approval"). However, such services will only be
deemed pre-approved provided that any individual project does not
exceed $5,000 attributable to the registrant or $50,000 for all of
the registrants the Committee oversees. Any proposed services
exceeding the pre-approved cost levels will require specific pre-
approval by the Committee, as will any other services not subject to
general pre-approval (e.g., unanticipated but permissible services).
The Committee is informed of each service approved subject to
general pre-approval at the next regularly scheduled in-person board
meeting.
(e)(2) 0%
(f) Not Applicable
(g) Fiscal Year Ended May 31, 2007 - $2,988,917
Fiscal Year Ended May 31, 2006 - $3,124,717
(h) The registrant's audit committee has considered and determined
that the provision of non-audit services that were rendered to the
registrant's investment adviser and any entity controlling,
controlled by, or under common control with the investment adviser
that provides ongoing services to the registrant that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation
S-X is compatible with maintaining the principal accountant's
independence.
Regulation S-X Rule 2-01(c)(7)(ii) - $1,739,500, 0%
Item 5 - Audit Committee of Listed Registrants - The following individuals
are members of the registrant's separately-designated standing audit
committee established in accordance with Section 3(a)(58)(A) of the
Exchange Act (15 U.S.C. 78c(a)(58)(A)):
Donald W. Burton
John F. O'Brien
David H. Walsh
Fred G. Weiss
Item 6 - Schedule of Investments - The registrant's Schedule of Investments
is included as part of the Report to Stockholders filed under Item 1
of this form.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies -
Proxy Voting Policies and Procedures Applicable to the Fund
-----------------------------------------------------------
Each Fund's Board of Directors has delegated to the Manager
authority to vote all proxies relating to the Fund's portfolio
securities. The Manager has adopted policies and procedures (the
"Proxy Voting Procedures") with respect to the voting of proxies
related to the portfolio securities held in the account of one or
more of its clients, including a Fund. Pursuant to these Proxy
Voting Procedures, the Manager's primary objective when voting
proxies is to make proxy voting decisions solely in the best
interests of each Fund and its shareholders, and to act in a manner
that the Manager believes is most likely to enhance the economic
value of the securities held by the Fund. The Proxy Voting
Procedures are designed to ensure that the Manager considers the
interests of its clients, including each Fund, and not the interests
of the Manager, when voting proxies and that real (or perceived)
material conflicts that may arise between the Manager's interest and
those of the Manager's clients are properly addressed and resolved.
In order to implement the Proxy Voting Procedures, the Manager has
formed a Proxy Voting Committee (the "Committee"). The Committee,
which is a subcommittee of the Manager's Equity Investment Policy
Oversight Committee ("EIPOC"), is comprised of a senior member of
the Manager's equity management group who is also a member of EIPOC,
one or more other senior investment professionals appointed by
EIPOC, portfolio managers and investment analysts appointed by EIPOC
and any other personnel EIPOC deems appropriate. The Committee will
also include two non-voting representatives from the Manager's Legal
Department appointed by the Manager's General Counsel. The
Committee's membership shall be limited to full-time employees of
the Manager. No person with any investment banking, trading, retail
brokerage or research responsibilities for the Manager's affiliates
may serve as a member of the Committee or participate in its
decision making (except to the extent such person is asked by the
Committee to present information to the Committee on the same basis
as other interested knowledgeable parties not affiliated with the
Manager might be asked to do so). The Committee determines how to
vote the proxies of all clients, including a Fund, that have
delegated proxy voting authority to the Manager and seeks to ensure
that all votes are consistent with the best interests of those
clients and are free from unwarranted and inappropriate influences.
The Committee establishes general proxy voting policies for the
Manager and is responsible for determining how those policies are
applied to specific proxy votes, in light of each issuer's unique
structure, management, strategic options and, in certain
circumstances, probable economic and other anticipated consequences
of alternate actions. In so doing, the Committee may determine to
vote a particular proxy in a manner contrary to its generally stated
policies. In addition, the Committee will be responsible for
ensuring that all reporting and recordkeeping requirements related
to proxy voting are fulfilled.
The Committee may determine that the subject matter of a recurring
proxy issue is not suitable for general voting policies and requires
a case-by-case determination. In such cases, the Committee may elect
not to adopt a specific voting policy applicable to that issue. The
Manager believes that certain proxy voting issues require investment
analysis - such as approval of mergers and other significant
corporate transactions - akin to investment decisions, and are,
therefore, not suitable for general guidelines. The Committee may
elect to adopt a common position for the Manager on certain proxy
votes that are akin to investment decisions, or determine to permit
the portfolio manager to make individual decisions on how best to
maximize economic value for a Fund (similar to normal buy/sell
investment decisions made by such portfolio managers). While it is
expected that the Manager will generally seek to vote proxies over
which the Manager exercises voting authority in a uniform manner for
all the Manager's clients, the Committee, in conjunction with a
Fund's portfolio manager, may determine that the Fund's specific
circumstances require that its proxies be voted differently.
To assist the Manager in voting proxies, the Committee has retained
Institutional Shareholder Services ("ISS"). ISS is an independent
adviser that specializes in providing a variety of fiduciary-level
proxy-related services to institutional investment managers, plan
sponsors, custodians, consultants, and other institutional
investors. The services provided to the Manager by ISS include in-
depth research, voting recommendations (although the Manager is not
obligated to follow such recommendations), vote execution, and
recordkeeping. ISS will also assist the Fund in fulfilling its
reporting and recordkeeping obligations under the Investment Company
Act.
The Manager's Proxy Voting Procedures also address special
circumstances that can arise in connection with proxy voting. For
instance, under the Proxy Voting Procedures, the Manager generally
will not seek to vote proxies related to portfolio securities that
are on loan, although it may do so under certain circumstances. In
addition, the Manager will vote proxies related to securities of
foreign issuers only on a best efforts basis and may elect not to
vote at all in certain countries where the Committee determines that
the costs associated with voting generally outweigh the benefits.
The Committee may at any time override these general policies if it
determines that such action is in the best interests of a Fund.
From time to time, the Manager may be required to vote proxies in
respect of an issuer where an affiliate of the Manager (each, an
"Affiliate"), or a money management or other client of the Manager,
including investment companies for which the Manager provides
investment advisory, administrative and/or other services (each, a
"Client"), is involved. The Proxy Voting Procedures and the
Manager's adherence to those procedures are designed to address such
conflicts of interest. The Committee intends to strictly adhere to
the Proxy Voting Procedures in all proxy matters, including matters
involving Affiliates and Clients. If, however, an issue representing
a non-routine matter that is material to an Affiliate or a widely
known Client is involved such that the Committee does not reasonably
believe it is able to follow its guidelines (or if the particular
proxy matter is not addressed by the guidelines) and vote
impartially, the Committee may, in its discretion for the purposes
of ensuring that an independent determination is reached, retain an
independent fiduciary to advise the Committee on how to vote or to
cast votes on behalf of the Manager's clients.
In the event that the Committee determines not to retain an
independent fiduciary, or it does not follow the advice of such an
independent fiduciary, the Committee may pass the voting power to a
subcommittee, appointed by EIPOC (with advice from the Secretary of
the Committee), consisting solely of Committee members selected by
EIPOC. EIPOC shall appoint to the subcommittee, where appropriate,
only persons whose job responsibilities do not include contact with
the Client and whose job evaluations would not be affected by the
Manager's relationship with the Client (or failure to retain such
relationship). The subcommittee shall determine whether and how to
vote all proxies on behalf of the Manager's clients or, if the proxy
matter is, in their judgment, akin to an investment decision, to
defer to the applicable portfolio managers, provided that, if the
subcommittee determines to alter the Manager's normal voting
guidelines or, on matters where the Manager's policy is case-by-
case, does not follow the voting recommendation of any proxy voting
service or other independent fiduciary that may be retained to
provide research or advice to the Manager on that matter, no proxies
relating to the Client may be voted unless the Secretary, or in the
Secretary's absence, the Assistant Secretary of the Committee
concurs that the subcommittee's determination is consistent with the
Manager's fiduciary duties.
In addition to the general principles outlined above, the Manager
has adopted voting guidelines with respect to certain recurring
proxy issues that are not expected to involve unusual circumstances.
These policies are guidelines only, and the Manager may elect to
vote differently from the recommendation set forth in a voting
guideline if the Committee determines that it is in a Fund's best
interest to do so. In addition, the guidelines may be reviewed at
any time upon the request of a Committee member and may be amended
or deleted upon the vote of a majority of Committee members present
at a Committee meeting at which there is a quorum.
The Manager has adopted specific voting guidelines with respect to
the following proxy issues:
* Proposals related to the composition of the board of directors of
issuers other than investment companies. As a general matter, the
Committee believes that a company's board of directors (rather than
shareholders) is most likely to have access to important, nonpublic
information regarding a company's business and prospects, and is,
therefore, best-positioned to set corporate policy and oversee
management. The Committee, therefore, believes that the foundation
of good corporate governance is the election of qualified,
independent corporate directors who are likely to diligently
represent the interests of shareholders and oversee management of
the corporation in a manner that will seek to maximize shareholder
value over time. In individual cases, the Committee may look at a
nominee's number of other directorships, history of representing
shareholder interests as a director of other companies or other
factors, to the extent the Committee deems relevant.
* Proposals related to the selection of an issuer's independent
auditors. As a general matter, the Committee believes that corporate
auditors have a responsibility to represent the interests of
shareholders and provide an independent view on the propriety of
financial reporting decisions of corporate management. While the
Committee will generally defer to a corporation's choice of auditor,
in individual cases, the Committee may look at an auditors' history
of representing shareholder interests as auditor of other companies,
to the extent the Committee deems relevant.
* Proposals related to management compensation and employee
benefits. As a general matter, the Committee favors disclosure of an
issuer's compensation and benefit policies and opposes excessive
compensation, but believes that compensation matters are normally
best determined by an issuer's board of directors, rather than
shareholders. Proposals to "micro-manage" an issuer's compensation
practices or to set arbitrary restrictions on compensation or
benefits will, therefore, generally not be supported.
* Proposals related to requests, principally from management, for
approval of amendments that would alter an issuer's capital
structure. As a general matter, the Committee will support requests
that enhance the rights of common shareholders and oppose requests
that appear to be unreasonably dilutive.
* Proposals related to requests for approval of amendments to an
issuer's charter or by-laws. As a general matter, the Committee
opposes poison pill provisions.
* Routine proposals related to requests regarding the formalities of
corporate meetings.
* Proposals related to proxy issues associated solely with holdings
of investment company shares. As with other types of companies, the
Committee believes that a fund's board of directors (rather than its
shareholders) is best positioned to set fund policy and oversee
management. However, the Committee opposes granting boards of
directors authority over certain matters, such as changes to a
fund's investment objective, which the Investment Company Act
envisions will be approved directly by shareholders.
* Proposals related to limiting corporate conduct in some manner
that relates to the shareholder's environmental or social concerns.
The Committee generally believes that annual shareholder meetings
are inappropriate forums for discussion of larger social issues, and
opposes shareholder resolutions "micromanaging" corporate conduct or
requesting release of information that would not help a shareholder
evaluate an investment in the corporation as an economic matter.
While the Committee is generally supportive of proposals to require
corporate disclosure of matters that seem relevant and material to
the economic interests of shareholders, the Committee is generally
not supportive of proposals to require disclosure of corporate
matters for other purposes.
Information about how a Fund voted proxies relating to securities
held in the Fund's portfolio during the most recent 12 month period
ended June 30 is available without charge (1) at www.blackrock.com
and (2) on the Commission's web site at http://www.sec.gov.
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
as of May 31, 2007.
(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 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 May 31, 2007:
(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. 80 0 1 0 0 1
$28,374,334,472 $0 $34,565,220 $0 $0 $34,565,220
Walter
O'Connor 80 0 0 0 0 0
$28,374,334,472 $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 May 31, 2007:
Portfolio Manager Compensation
The elements of total compensation for portfolio managers on
BlackRock's municipal team include 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 these portfolio managers with a powerful incentive to
achieve consistently superior investment performance. By design,
compensation levels for these portfolio managers fluctuate--both up
and down--with the relative investment performance of the portfolios
that they manage.
Base compensation. 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, 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
closed-end, intermediate 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 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 the 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 BlackRock mutual funds (including their own
fund) 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 employees of BlackRock and its
affiliates, including broad-based retirement, 401(k), health, and
other employee benefit plans.
(a)(4) Beneficial Ownership of Securities. As of May 31, 2007,
neither Mr. Jaeckel nor Mr. O'Connor beneficially owned 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 - The
registrant's Nominating Committee will consider nominees to the
Board recommended by shareholders when a vacancy becomes available.
Shareholders who wish to recommend a nominee should send nominations
which include biographical information and set forth the
qualifications of the proposed nominee to the registrant's
Secretary. There have been no material changes to these procedures.
Item 11 - Controls and Procedures
11(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded that
the registrant's disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940, as amended
(the "1940 Act")) are effective as of a date within 90 days of the
filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
13a-15(b) under the Securities and Exchange Act of 1934, as amended.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that have materially affected,
or are reasonably likely to materially affect, the registrant's
internal control over financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - See Item 2
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: July 24, 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: July 24, 2007
By: /s/ Donald C. Burke
-------------------
Donald C. Burke,
Chief Financial Officer of
BlackRock Muni Intermediate Duration Fund, Inc.
Date: July 24, 2007