UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-07083
Name of Fund: BlackRock MuniYield Arizona Fund, Inc. (MZA)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock
MuniYield Arizona Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing
address: P.O. Box 9011, Princeton, NJ, 08543-9011
Registrants telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 07/31/2009
Date of reporting period: 04/30/2009
Item 1 Schedule of Investments
BlackRock MuniYield Arizona Fund, Inc. | ||||
Schedule of Investments April 30, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | |||
Par | ||||
Municipal Bonds | (000) | Value | ||
Arizona - 141.4% | ||||
Corporate - 1.4% | Yavapai County, Arizona, IDA, Solid Waste Disposal | |||
Revenue Bonds (Waste Management Inc. Project), AMT, | ||||
Series A-1, 4.90%, 3/01/28 | $ 1,000 | $ 782,000 | ||
County/City/Special | Downtown Phoenix Hotel Corporation, Arizona, Revenue | |||
District/School District - 47.1% | Bonds, Senior Series A, 5%, 7/01/36 (a) | 1,500 | 985,080 | |
Downtown Phoenix Hotel Corporation, Arizona, Revenue | ||||
Bonds, Sub-Series B, 5%, 7/01/36 (a)(b) | 965 | 812,588 | ||
Gila County, Arizona, Unified School District Number 10 | ||||
(Payson), GO (School Improvement Project of 2006), | ||||
Series A, 1%, 7/01/27 (c) | 1,000 | 964,430 | ||
Gilbert, Arizona, Public Facilities Municipal Property | ||||
Corporation Revenue Bonds, 5.50%, 7/01/27 | 2,000 | 2,062,720 | ||
Gladden Farms Community Facilities District, Arizona, | ||||
GO, 5.50%, 7/15/31 | 750 | 443,092 | ||
Greater Arizona Development Authority, Infrastructure | ||||
Revenue Bonds (Santa Cruz County Jail), Series 2, 5.25%, | ||||
8/01/31 | 1,000 | 998,610 | ||
Greater Arizona Development Authority, Infrastructure | ||||
Revenue Bonds, Series B, 5%, 8/01/30 (b) | 1,700 | 1,677,968 | ||
Maricopa County, Arizona, School District Number 3, GO, | ||||
Refunding (Tempe Elementary), 7.50%, 7/01/10 (a)(b) | 500 | 533,410 | ||
Maricopa County, Arizona, School District Number 11, GO | ||||
(Peoria Unified), Second Series, 5%, 7/01/25 (a)(b) | 630 | 651,565 | ||
Maricopa County, Arizona, School District Number 89, | ||||
School Improvement, GO (Dysart Unified), Series C, 6%, | ||||
7/01/28 | 1,000 | 1,067,450 | ||
Maricopa County, Arizona, School District Number 90, | ||||
School Improvement, GO (Saddle Mountain Unified), | ||||
Series A, 5%, 7/01/14 | 150 | 155,184 | ||
Mohave County, Arizona, Unified School District Number | ||||
20 (Kingman), School Improvement Bonds (Project of | ||||
2006), Series C, 5%, 7/01/26 (d) | 1,000 | 1,023,970 | ||
Phoenix, Arizona, Civic Improvement Corporation, Excise | ||||
Tax Revenue Bonds (Civic Plaza Expansion Project), Sub- | ||||
Series A, 5%, 7/01/35 (a)(b) | 3,325 | 3,333,512 | ||
Pima County, Arizona, Unified School District Number 1 | ||||
(Tucson), GO, Refunding, 7.50%, 7/01/09 (a)(b) | 2,050 | 2,070,295 | ||
Pinal County, Arizona, COP, 5%, 12/01/26 | 1,250 | 1,139,312 | ||
Pinal County, Arizona, COP, 5%, 12/01/29 | 1,250 | 1,104,637 | ||
Queen Creek Improvement District Number 001, Arizona, | ||||
Special Assessment Bonds, 5%, 1/01/32 | 2,000 | 1,517,080 | ||
Portfolio Abbreviations |
To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the
securities have been abbreviated according to the list below.
AMT | Alternative Minimum Tax (subject to) | IDA | Industrial Development Authority | |
COP | Certificates of Participation | S/F | Single-Family | |
GO | General Obligation Bonds | |||
1 |
BlackRock MuniYield Arizona Fund, Inc. | ||||
Schedule of Investments April 30, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | |||
Par | ||||
Municipal Bonds | (000) | Value | ||
Scottsdale, Arizona, Municipal Property Corporation, | ||||
Excise Tax Revenue Bonds (Water and Sewer Development | ||||
Project), Series A, 5%, 7/01/24 | $ 1,500 | $ 1,621,290 | ||
Vistancia Community Facilities District, Arizona, GO, | ||||
6.75%, 7/15/22 | 1,275 | 1,214,973 | ||
Vistancia Community Facilities District, Arizona, GO, | ||||
5.75%, 7/15/24 | 750 | 635,633 | ||
Yuma County, Arizona, Library District, GO, 5%, | ||||
7/01/26 (e) | 1,565 | 1,571,135 | ||
25,583,934 | ||||
Education - 20.8% | Arizona Board of Regents Revenue Bonds (Arizona State | |||
University System), Series C, 6%, 7/01/25 | 970 | 1,097,342 | ||
Arizona Board of Regents Revenue Bonds (Arizona State | ||||
University System), Series C, 6%, 7/01/26 | 350 | 392,980 | ||
Arizona Board of Regents Revenue Bonds (Arizona State | ||||
University System), Series C, 6%, 7/01/27 | 425 | 473,450 | ||
Arizona Board of Regents Revenue Bonds (Arizona State | ||||
University System), Series C, 6%, 7/01/28 | 300 | 332,058 | ||
Arizona Student Loan Acquisition Authority, Student Loan | ||||
Revenue Refunding Bonds, AMT, Junior Subordinated | ||||
Series B-1, 6.15%, 5/01/29 | 3,285 | 3,135,434 | ||
Maricopa County, Arizona, IDA, Education Revenue Bonds | ||||
(Arizona Charter Schools Project 1), Series A, 6.625%, | ||||
7/01/20 | 900 | 675,999 | ||
Pima County, Arizona, IDA, Education Revenue Bonds | ||||
(American Charter Schools Foundation), Series A, 5.625%, | ||||
7/01/38 | 500 | 329,355 | ||
Pima County, Arizona, IDA, Education Revenue Bonds | ||||
(Arizona Charter Schools Project), Series C, 6.70%, | 730 | 569,466 | ||
Pima County, Arizona, IDA, Education Revenue Bonds | ||||
(Arizona Charter Schools Project), Series C, 6.75%, | 985 | 691,933 | ||
Pima County, Arizona, IDA, Education Revenue Refunding | ||||
Bonds (Arizona Charter Schools Project II), Series A, | ||||
6.75%, 7/01/21 | 575 | 450,604 | ||
Pima County, Arizona, IDA, Education Revenue Refunding | ||||
Bonds (Arizona Charter Schools Project), Series O, 5%, | ||||
7/01/26 | 1,000 | 590,140 | ||
University of Arizona, COP, Refunding, Series A, 5.125%, | ||||
6/01/29 (c) | 1,005 | 1,005,181 | ||
University of Arizona, COP, Series B, 5%, 6/01/28 (c) | 1,550 | 1,544,265 | ||
11,288,207 | ||||
Health - 21.2% | Arizona Health Facilities Authority Revenue Bonds | |||
(Catholic Healthcare West), Series A, 6.625%, 7/01/20 | 1,435 | 1,535,048 | ||
Arizona Health Facilities Authority, Revenue Refunding | ||||
Bonds (Banner Health System), Series D, 6%, 1/01/30 | 1,500 | 1,517,040 | ||
Arizona Health Facilities Authority, Revenue Refunding | ||||
Bonds (Banner Health System), Series D, 5.50%, 1/01/38 | 1,000 | 951,540 | ||
2 |
BlackRock MuniYield Arizona Fund, Inc. | ||||
Schedule of Investments April 30, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | |||
Par | ||||
Municipal Bonds | (000) | Value | ||
Maricopa County, Arizona, IDA, Health Facilities Revenue | ||||
Refunding Bonds (Catholic Healthcare West Project), | ||||
Series A, 5.50%, 7/01/26 | $ 1,850 | $ 1,762,957 | ||
Maricopa County, Arizona, IDA, Hospital Facility Revenue | ||||
Refunding Bonds (Samaritan Health Services), Series A, | ||||
7%, 12/01/16 (b)(f) | 1,000 | 1,244,610 | ||
Mesa, Arizona, IDA Revenue Bonds (Discovery Health | ||||
Systems), Series A, 5.625%, 1/01/10 (b)(g) | 1,000 | 1,041,670 | ||
Scottsdale, Arizona, IDA, Hospital Revenue Refunding | ||||
Bonds (Scottsdale Healthcare), Series A, 5.25%, 9/01/30 | 1,000 | 879,740 | ||
Tucson, Arizona, IDA, Senior Living Facilities Revenue | ||||
Bonds (Christian Care Tucson Inc. Project), Series A, | ||||
6.125%, 7/01/10 (g)(h) | 1,000 | 1,066,380 | ||
Yavapai County, Arizona, IDA, Hospital Facility Revenue | ||||
Bonds (Yavapai Regional Medical Center), Series A, 6%, | ||||
8/01/33 | 1,900 | 1,498,967 | ||
11,497,952 | ||||
Housing - 14.8% | Maricopa County and Phoenix, Arizona, IDA, S/F Mortgage | |||
Revenue Bonds, AMT, Series A-2, 5.80%, 7/01/40 (i)(j)(k) | 925 | 945,248 | ||
Maricopa County and Phoenix, Arizona, IDA, S/F Mortgage | ||||
Revenue Refunding Bonds, AMT, Series A-1, 5.75%, | 1,270 | 1,296,378 | ||
Maricopa County, Arizona, IDA, S/F Mortgage Revenue | ||||
Bonds, AMT, Series 3-B, 5.25%, 8/01/38 (i)(j)(k) | 1,667 | 1,655,304 | ||
Phoenix and Pima County, Arizona, IDA, S/F Mortgage | ||||
Revenue Bonds, AMT, Series 1A, 5.65%, 7/01/39 (j)(k) | 796 | 808,957 | ||
Phoenix and Pima County, Arizona, IDA, S/F Mortgage | ||||
Revenue Refunding Bonds, AMT, Series 2007-1, 5.25%, | ||||
8/01/38 (i)(j)(k) | 1,678 | 1,703,631 | ||
Phoenix, Arizona, IDA, S/F Mortgage Revenue Bonds, AMT, | ||||
Series 2007-2, 5.50%, 8/01/38 (i)(j)(k) | 1,650 | 1,660,178 | ||
8,069,696 | ||||
State - 12.3% | Arizona School Facilities Board, COP, 5.125%, 9/01/21 | 1,000 | 1,024,690 | |
Arizona School Facilities Board, COP, 5.75%, 9/01/22 | 2,000 | 2,134,180 | ||
Arizona State Transportation Board, Highway Revenue | ||||
Bonds, Series B, 5%, 7/01/27 | 475 | 501,054 | ||
Arizona State Transportation Board, Highway Revenue | ||||
Bonds, Series B, 5%, 7/01/30 | 2,000 | 2,068,260 | ||
Arizona Tourism and Sports Authority, Tax Revenue Bonds | ||||
(Baseball Training Facilities Project), 5%, 7/01/16 | 1,000 | 939,010 | ||
6,667,194 | ||||
Transportation - 2.8% | Phoenix, Arizona, Civic Improvement Corporation, Senior | |||
Lien Airport Revenue Bonds, AMT, Series A, 5%, 7/01/33 | 1,000 | 988,870 |
3
BlackRock MuniYield Arizona Fund, Inc. | ||||
Schedule of Investments April 30, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | |||
Par | ||||
Municipal Bonds | (000) | Value | ||
Phoenix, Arizona, Civic Improvement Corporation, | ||||
Senior Lien Airport Revenue Bonds, AMT, Series B, | ||||
5.25%, 7/01/32 (a)(b) | $ 600 | $ 529,680 | ||
1,518,550 | ||||
Utilities - 21.0% | Gilbert, Arizona, Water Resource Municipal Property | |||
Corporation, Water System Development Fee and Utility | ||||
Revenue Bonds, Subordinated Lien, 5%, 10/01/29 (b) | 900 | 880,803 | ||
Phoenix, Arizona, Civic Improvement Corporation, | ||||
Wastewater System Revenue Refunding Bonds, Senior | ||||
Lien, 5.50%, 7/01/22 | 2,000 | 2,183,320 | ||
Phoenix, Arizona, Civic Improvement Corporation, Water | ||||
System Revenue Refunding Bonds, Junior Lien, 5.50%, | ||||
7/01/20 (a)(b) | 2,500 | 2,667,200 | ||
Pinal County, Arizona, IDA, Wastewater Revenue Bonds | ||||
(San Manuel Facilities Project), AMT, 6.25%, 6/01/26 | 500 | 379,350 | ||
Salt River Project, Arizona, Agriculture Improvement and | ||||
Power District, Electric System Revenue Bonds, Series A, | ||||
5%, 1/01/24 | 1,000 | 1,069,570 | ||
Salt River Project, Arizona, Agriculture Improvement and | ||||
Power District, Electric System Revenue Refunding Bonds, | ||||
Series A, 5%, 1/01/35 | 1,500 | 1,517,700 | ||
Salt Verde Financial Corporation, Arizona, Senior Gas | ||||
Revenue Bonds, 5%, 12/01/37 | 2,565 | 1,728,143 | ||
Surprise Municipal Property Corporation, Arizona, | ||||
Wastewater Development Impact Fee Revenue Bonds, | ||||
4.90%, 4/01/32 | 1,250 | 925,075 | ||
11,351,161 | ||||
Total Municipal Bonds in Arizona | 76,758,694 | |||
Guam - 1.4% | ||||
Utility - 1.4% | Guam Government Waterworks Authority, Water and | |||
Wastewater System, Revenue Refunding Bonds, 5.875%, | ||||
7/01/35 | 1,000 | 792,500 | ||
Total Municipal Bonds in Guam | 792,500 | |||
Puerto Rico - 19.8% | ||||
State - 8.7% | Puerto Rico Commonwealth, GO, Series A, 6%, 7/01/38 | 800 | 768,056 | |
Puerto Rico Commonwealth, Public Improvement, GO, | ||||
Series A, 5.125%, 7/01/31 | 750 | 619,778 | ||
Puerto Rico Public Buildings Authority, Government | ||||
Facilities Revenue Bonds, Series I, 5.25%, 7/01/33 (l) | 1,965 | 1,582,198 | ||
Puerto Rico Public Buildings Authority, Government | ||||
Facilities Revenue Refunding Bonds, Series M-3, 6%, | ||||
7/01/28 (b)(l) | 900 | 881,856 | ||
Puerto Rico Public Buildings Authority, Government | ||||
Facilities Revenue Refunding Bonds, Series N, 5.50%, | ||||
7/01/27 (l) | 1,000 | 875,830 | ||
4,727,718 |
4
BlackRock MuniYield Arizona Fund, Inc. | ||||
Schedule of Investments April 30, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | |||
Par | ||||
Municipal Bonds | (000) | Value | ||
Transportation - 1.3% | Puerto Rico Commonwealth Highway and Transportation | |||
Authority, Highway Revenue Refunding Bonds, Series CC, | ||||
5.50%, 7/01/31 | $ 790 | $ 686,984 | ||
Utilities - 9.8% | Puerto Rico Commonwealth Aqueduct and Sewer Authority, | |||
Senior Lien Revenue Bonds, Series A, 6%, 7/01/44 (h) | 2,180 | 2,087,677 | ||
Puerto Rico Electric Power Authority, Power Revenue | ||||
Bonds, Series TT, 5%, 7/01/37 | 1,000 | 858,740 | ||
Puerto Rico Electric Power Authority, Power Revenue | ||||
Bonds, Series WW, 5.375%, 7/01/24 | 1,000 | 962,300 | ||
Puerto Rico Industrial, Tourist, Educational, Medical and | ||||
Environmental Control Facilities Revenue Bonds | ||||
(Cogeneration Facility-AES Puerto Rico Project), AMT, | ||||
6.625%, 6/01/26 | 1,500 | 1,407,465 | ||
5,316,182 | ||||
Total Municipal Bonds in Puerto Rico | 10,730,884 | |||
Total Long-Term Investments (Cost - $94,662,755) - 162.6% | 88,282,078 | |||
Short-Term Securities | Shares | |||
Money Market Fund - 9.0% | CMA Arizona Municipal Money Fund, 0.04% (m)(n) | 4,886,891 | 4,886,891 | |
Total Short-Term Securities (Cost - $4,886,891) - 9.0% | 4,886,891 | |||
Total Investments (Cost - $99,549,646*) - 171.6% | 93,168,969 | |||
Liabilities in Excess of Other Assets - (71.6)% | (38,887,852) | |||
Net Assets Applicable to Common Shares - 100.0% | $ 54,281,117 |
* The cost and unrealized appreciation (depreciation) of investments as of April 30, 2009, as computed for federal
income tax purposes, were as follows:
Aggregate cost | $ | 99,589,061 |
Gross unrealized appreciation | $ | 1,488,807 |
Gross unrealized depreciation | (7,908,899) | |
Net unrealized depreciation | $ | (6,420,092) |
(a) FGIC Insured.
(b) NPFGC Insured.
(c) AMBAC Insured.
(d) Assured Guaranty Insured.
(e) XL Capital Insured.
(f) Security is collateralized by Municipal or US Treasury Obligations.
(g) US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in
full at the date indicated, typically at a premium to par.
(h) Radian Insured.
(i) FHLMC Collateralized.
(j) FNMA Collateralized.
(k) GNMA Collateralized.
(l) Commonwealth Guaranteed.
5
BlackRock MuniYield Arizona Fund, Inc.
Schedule of Investments April 30, 2009 (Unaudited)
(m) 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 | |||
Affiliate | Activity | Income | |
CMA Arizona Municipal Money Fund | 1,713,545 | $ | 16,612 |
(n) Represents the current yield as of report date.
The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157,
"Fair Value Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value, establishes a framework for
measuring fair values and requires additional disclosures about the use of fair value measurements. Various
inputs are used in determining the fair value of investments, which are as follows:
Level 1 - price quotations in active markets/exchanges for identical securities
Level 2 - other observable inputs (including, but not limited to: quoted prices for similar assets or
liabilities in markets that are active, quoted prices for identical or similar assets in markets that are not
active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or
other market-corroborated inputs)
Level 3 - unobservable inputs based on the best information available in the circumstance, to the extent
observable inputs are not available (including the Fund's own assumptions used in determining the fair
value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with
investing in those securities. For information about the Fund's policy regarding valuation of investments and other
significant accounting policies, please refer to the Fund's most recent financial statements as contained in its
semi-annual report.
The following table summarizes the inputs used as of April 30, 2009 in determining the fair valuation of the Fund's
investments:
Valuation | Investments in | |
Inputs | Securities | |
Assets | ||
Level 1 | $ | 4,886,891 |
Level 2 | 88,282,078 | |
Level 3 | - | |
Total | $ | 93,168,969 |
6
Item 2 Controls and Procedures
2(a) The registrants principal executive and principal financial officers or persons performing
similar functions have concluded that the registrants 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 13(a)-15(b) under the Securities Exchange Act of 1934, as amended.
2(b) There were no changes in the registrants internal control over financial reporting (as
defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrants last fiscal
quarter that have materially affected, or are reasonably likely to materially affect, the
registrants internal control over financial reporting.
Item 3 Exhibits
Certifications Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
BlackRock MuniYield Arizona Fund, Inc.
By: /s/ Donald C. Burke
Donald C. Burke
Chief Executive Officer of
BlackRock MuniYield Arizona Fund, Inc.
Date: June 19, 2009
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/ Donald C. Burke
Donald C. Burke
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield Arizona Fund, Inc.
Date: June 19, 2009
By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniYield Arizona Fund, Inc.
Date: June 19, 2009