UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-5769
Van Kampen High Income Trust II
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(Exact name of registrant as specified in charter)
1221 Avenue of the Americas, New York, New York 10020
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(Address of principal executive offices) (Zip code)
Ronald Robison
1221 Avenue of the Americas, New York, New York 10020
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(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 12/31
Date of reporting period: 3/31/05
Item 1. Schedule of Investments.
The Trust's schedule of investments as of the close of the reporting period
prepared pursuant to Rule 12-12 of Regulation S-X is as follows:
VAN KAMPEN HIGH INCOME TRUST II
PORTFOLIO OF INVESTMENTS MARCH 31, 2005 (UNAUDITED)
PAR
AMOUNT
(000) DESCRIPTION COUPON MATURITY VALUE
CORPORATE BONDS 166.6%
AEROSPACE 1.3%
$ 500 K&F Acquisition, Inc., 144A - Private Placement (a) 7.750 % 11/15/14 $ 487,500
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BROADCASTING 0.6%
220 Salem Communications Corp. 7.750 12/15/10 229,075
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CABLE 10.3%
425 Cablevision Systems Corp., 144A - Private Placement
(a) (b) 6.669 04/01/09 452,625
755 Charter Communications Holdings LLC 9.625 11/15/09 594,562
635 Echostar DBS Corp. 6.375 10/01/11 625,475
935 Intelsat Bermuda Ltd - 144A - Private Placement
(Bermuda) (a) (b) 7.805 01/15/12 953,700
35 Intelsat Bermuda Ltd - 144A - Private Placement
(Bermuda) (a) 8.250 01/15/13 35,525
725 Kabel Deutschland GmbH, 144A - Private Placement
(Germany) (a) 10.625 07/01/14 804,750
293 PanAmSat Corp. 9.000 08/15/14 310,580
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3,777,217
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CHEMICALS 13.3%
460 Equistar Chemicals LP 10.125 09/01/08 510,600
250 Equistar Chemicals LP 10.625 05/01/11 281,875
180 FMC Corp. 10.250 11/01/09 201,600
145 Huntsman Advanced Materials LLC, 144A - Private
Placement (a) 11.000 07/15/10 167,112
315 Innophos, Inc., 144A - Private Placement (a) 8.875 08/15/14 332,325
145 ISP Chemco, Inc. 10.250 07/01/11 157,687
675 ISP Holdings, Inc. 10.625 12/15/09 725,625
105 Koppers, Inc. 9.875 10/15/13 117,600
570 Lyondell Chemical Co. 10.500 06/01/13 658,350
40 Millennium America, Inc. 7.000 11/15/06 40,800
385 Millennium America, Inc. 9.250 06/15/08 414,837
395 Nalco Co. 7.750 11/15/11 412,775
365 Rhodia SA (France) 8.875 06/01/11 356,787
445 Rockwood Specialties Group, Inc. 10.625 05/15/11 496,175
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4,874,148
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CONSUMER PRODUCTS 5.1%
200 Amscan Holdings, Inc. 8.750 05/01/14 195,000
140 Del Laboratories, Inc., 144A - Private Placement (a) 8.000 02/01/12 135,100
155 Oxford Industrials, Inc. 8.875 06/01/11 165,075
650 Phillips Van-Heusen Corp. 7.250 02/15/11 663,000
470 Rayovac Corp. 8.500 10/01/13 486,450
110 Rayovac Corp., 144A - Private Placement (a) 7.375 02/01/15 105,875
116 Tempur Pedic, Inc. 10.250 08/15/10 130,790
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1,881,290
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DIVERSIFIED MEDIA 8.9%
601 Advanstar Communications, Inc. (b) 10.294 08/15/08 624,884
550 CanWest Media, Inc. (Canada) 10.625 05/15/11 602,250
290 Dex Media West/Finance Corp., LLC 9.875 08/15/13 324,800
485 Houghton Mifflin Co. 9.875 02/01/13 501,975
100 Interpublic Group of Cos, Inc. 5.400 11/15/09 96,250
135 Interpublic Group of Cos, Inc. 6.250 11/15/14 128,250
315 Marquee, Inc., 144A - Private Placement (a) (b) 7.044 08/15/10 330,750
640 Primedia, Inc. 8.875 05/15/11 670,400
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3,279,559
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ENERGY 15.5%
340 CHC Helicopter Corp. (Canada) 7.375 05/01/14 332,775
290 CHC Helicopter Corp., 144A - Private Placement
(Canada) (a) 7.375 05/01/14 283,837
215 CITGO Petroleum Corp. 6.000 10/15/11 213,387
670 El Paso Production Holding Co. 7.750 06/01/13 681,725
640 Frontier Oil Corp. 6.625 10/01/11 640,000
70 Hanover Compressor Co. 8.625 12/15/10 73,500
285 Hanover Compressor Co. 9.000 06/01/14 306,375
275 Hanover Equipment Trust 8.500 09/01/08 288,062
120 Hanover Equipment Trust 8.750 09/01/11 127,200
410 Hilcorp Energy, Finance Corp., 144A - Private
Placement (a) 10.500 09/01/10 457,150
140 Magnum Hunter Resources, Inc. 9.600 03/15/12 157,500
275 Pacific Energy Partners 7.125 06/15/14 286,000
615 Plains Exploration & Production Co. 7.125 06/15/14 645,750
210 Port Arthur Finance Corp. 12.500 01/15/09 244,766
135 Tesoro Petroleum Corp. 9.625 04/01/12 148,837
760 Vintage Petroleum, Inc. 7.875 05/15/11 809,400
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5,696,264
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FINANCIAL 1.5%
510 Refco Finance Holdings LLC, 144A - Private
Placement (a) 9.000 08/01/12 543,150
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FOOD & DRUG 4.9%
510 Delhaize America, Inc. 8.125 04/15/11 569,426
115 Jean Coutu Group (PJC), Inc. (Canada) 7.625 08/01/12 117,875
655 Jean Coutu Group (PJC), Inc. (Canada) 8.500 08/01/14 639,444
1,180 Jitney-Jungle Stores America, Inc. (c) (d) (e) 12.000 03/01/06 0
470 Rite Aid Corp. 8.125 05/01/10 479,400
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1,806,145
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FOOD & TOBACCO 8.0%
550 Constellation Brands, Inc. 8.000 02/15/08 589,875
255 Michael Foods, Inc. 8.000 11/15/13 266,475
155 Pilgrim's Pride Corp. 9.250 11/15/13 171,275
570 Pilgrim's Pride Corp. 9.625 09/15/11 621,300
305 Smithfield Foods, Inc. 7.000 08/01/11 313,769
160 Smithfield Foods, Inc. 7.625 02/15/08 165,600
760 Smithfield Foods, Inc. 8.000 10/15/09 809,400
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2,937,694
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FOREST PRODUCTS 8.5%
380 Abitibi-Consolidated, Inc. (Canada) 6.000 06/20/13 330,600
245 Abitibi-Consolidated, Inc. (Canada) 8.550 08/01/10 249,900
410 Georgia-Pacific Corp. 8.875 02/01/10 459,712
575 Graphic Packaging International, Inc. 9.500 08/15/13 612,375
415 MDP Acquisitions PLC (Ireland) 9.625 10/01/12 448,200
365 Pliant Corp. 13.000 06/01/10 310,250
790 Tembec Industries, Inc. (Canada) 7.750 03/15/12 722,850
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3,133,887
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GAMING & LEISURE 12.6%
325 Ceasars Entertainment 8.875 09/15/08 357,094
690 Harrahs Operating Co., Inc. 7.875 12/15/05 705,525
58 HMH Properties, Inc. 7.875 08/01/08 59,450
200 Host Marriott LP 7.125 11/01/13 199,500
415 Host Marriott LP, 144A - Private Placement (a) 6.375 03/15/15 398,400
465 Isle of Capri Casinos, Inc. 7.000 03/01/14 462,675
115 MGM Mirage, Inc. 5.875 02/27/14 109,106
830 MGM Mirage, Inc. 6.000 10/01/09 822,737
645 Mohegan Tribal Gaming Authority 7.125 08/15/14 649,837
380 Park Place Entertainment Corp. 7.875 12/15/05 389,025
465 Station Casinos, Inc. 6.000 04/01/12 463,837
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4,617,186
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HEALTHCARE 10.2%
290 AmerisourceBergen Corp. 8.125 09/01/08 312,475
255 Community Health Systems, Inc., 144A - Private
Placement (a) 6.500 12/15/12 249,900
175 DaVita, Inc., 144A - Private Placement (a) 6.625 03/15/13 174,125
85 DaVita, Inc., 144A - Private Placement (a) 7.250 03/15/15 83,725
845 Extendicare Health Services, Inc. 6.875 05/01/14 838,662
295 Fisher Scientific International, Inc. 8.125 05/01/12 321,550
125 Fisher Scientific International, Inc., 144A - Private
Placement (a) 6.750 08/15/14 127,500
41 Fresenius Medical Care Capital Trust II 7.875 02/01/08 431,013
180 Fresenius Medical Care Capital Trust IV 7.875 06/15/11 195,750
380 HCA, Inc. 6.375 01/15/15 379,104
65 National Nephrology Associates, Inc., 144A - Private
Placement (a) 9.000 11/01/11 72,394
215 Team Health, Inc. 9.000 04/01/12 211,238
325 Tenet Healthcare Corp. 9.875 07/01/14 339,625
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3,737,061
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HOUSING 9.8%
925 Associated Materials, Inc. (f) 0/11.250 03/01/14 647,500
465 Interface, Inc. 9.500 02/01/14 491,738
455 Nortek, Inc. 8.500 09/01/14 441,350
505 Ply Gem Industries, Inc. 9.000 02/15/12 479,750
250 Propex Fabrics, Inc. 10.000 12/01/12 248,750
330 RMCC Acquisition Co., 144A - Private Placement (a) 9.500 11/01/12 325,050
210 Technical Olympic USA, Inc. 7.500 01/15/15 195,300
280 Technical Olympic USA, Inc. 9.000 07/01/10 291,200
215 Technical Olympic USA, Inc. 9.000 07/01/10 224,675
230 Technical Olympic USA, Inc. 10.375 07/01/12 253,000
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3,598,313
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INFORMATION TECHNOLOGY 4.9%
335 Iron Mountain, Inc. 7.750 01/15/15 332,488
570 Iron Mountain, Inc. 8.625 04/01/13 578,550
300 Sanmina-SCI Corp., 144A - Private Placement (a) 6.750 03/01/13 282,750
590 Xerox Corp. 7.125 06/15/10 612,863
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1,806,651
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MANUFACTURING 4.6%
115 Flowserve Corp. 12.250 08/15/10 125,638
395 JohnsonDiversey, Inc. 9.625 05/15/12 426,600
325 Manitowoc, Inc. 10.500 08/01/12 370,500
755 Trimas Corp. 9.875 06/15/12 773,875
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1,696,613
METAL/GLASS CONTAINERS 3.0%
1,020 Owens-Brockway Glass Containers, Inc. 8.875 02/15/09 1,093,950
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METALS 4.3%
159 Doe Run Resources Corp. (Acquired 02/15/01 to
10/15/04, Cost $139,441)(e)(g)(h) 13.063 11/01/08 148,574
105 Foundation PA Coal Co. 7.250 08/01/14 107,100
155 General Cable Corp. 9.500 11/15/10 171,275
515 Novelis, Inc. - 144A - Private Placement (Canada) (a) 7.250 02/15/15 507,275
325 UCAR Finance, Inc. 10.250 02/15/12 349,375
248 United States Steel Corp. 9.750 05/15/10 275,900
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1,559,499
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RETAIL 2.1%
370 General Nutrition Center, Inc. 8.500 12/01/10 316,350
435 Petro Stopping Center Financial 9.000 02/15/12 450,225
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766,575
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SERVICES 6.4%
400 Allied Waste North America, Inc. 8.500 12/01/08 412,000
740 Allied Waste North America, Inc. 8.875 04/01/08 768,675
380 Buhrmann US, Inc. 8.250 07/01/14 393,300
125 Buhrmann US, Inc., 144A - Private Placement (a) 7.875 03/01/15 125,625
295 MSW Energy Holdings II LLC 7.375 09/01/10 300,900
65 MSW Energy Holdings LLC 8.500 09/01/10 68,575
295 United Rentals North America, Inc. 6.500 02/15/12 288,363
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2,357,438
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TELECOMMUNICATIONS 6.1%
565 Axtel SA (Mexico) 11.000 12/15/13 600,313
220 Exodus Communications, Inc. (c) (d) (e) 11.250 07/01/08 0
320 Qwest Communications International, Inc., 144A -
Private Placement (a)(b) 6.294 02/15/09 324,000
525 Qwest Corp. 6.625 09/15/05 530,250
425 Qwest Corp., 144A - Private Placement (a) 7.875 09/01/11 439,875
340 Valor Telecommunications Enterprise, 144A - Private
Placement (a) 7.750 02/15/15 340,000
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2,234,438
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TRANSPORTATION 5.8%
335 AutoNation, Inc. 9.000 08/01/08 370,175
435 Laidlaw International, Inc. 10.750 06/15/11 494,813
795 Sonic Automotive, Inc. 8.625 08/15/13 795,000
450 TRW Automotive, Inc. 9.375 02/15/13 486,000
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2,145,988
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UTILITY 12.6%
365 AES Corp. 7.750 03/01/14 378,688
18 AES Corp. 8.875 02/15/11 19,575
54 AES Corp. 9.375 09/15/10 59,805
265 CMS Energy Corp. 6.300 02/01/12 257,811
50 CMS Energy Corp. 7.500 01/15/09 51,750
295 CMS Energy Corp. 8.500 04/15/11 320,075
405 Dynegy Holdings, Inc. 6.875 04/01/11 361,463
295 Dynegy Holdings, Inc., 144A - Private Placement (a) 9.875 07/15/10 317,494
170 IPALCO Enterprises, Inc. 8.625 11/14/11 195,925
350 Monongahela Power Co. 5.000 10/01/06 353,845
220 Nevada Power Co. 8.250 06/01/11 245,300
360 Nevada Power Co. 9.000 08/15/13 405,900
275 PSEG Energy Holdings, Inc. 7.750 04/16/07 283,938
650 Reliant Energy, Inc. 6.750 12/15/14 609,375
145 Southern Natural Gas Co. 8.875 03/15/10 157,949
580 TNP Enterprises, Inc. 10.250 04/01/10 613,350
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4,632,243
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WIRELESS COMMUNICATIONS 6.3%
750 Nextel Communications, Inc. 6.875 10/31/13 785,625
155 Rogers Wireless Communications, Inc. (Canada) 8.000 12/15/12 160,038
210 Rogers Wireless Communications, Inc., 144A -
Private Placement (Canada)(a) 7.500 03/15/15 217,875
185 Rural Cellular Corp. (b) 7.510 03/15/10 190,550
425 Rural Cellular Corp. 8.250 03/15/12 435,625
500 SBA Communications Corp., 144A - Private
Placement (a) 8.500 12/01/12 520,000
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2,309,713
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TOTAL CORPORATE BONDS 166.6% 61,201,597
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DESCRIPTION VALUE
EQUITIES 1.2%
DecisionOne Corp. (2,450 common shares) (e) (i) 0
DecisionOne Corp. (5,386 common stock warrants)
(e) (i) 0
Doe Run Resources Corp. (1 common stock warrant)
(e) (i) 0
HCI Direct, Inc. (30,357 common shares) (e) (i) 455,355
Hosiery Corp. of America, Inc. (500 common shares)
(e) (i) 0
VS Holdings, Inc. (8,891 common shares) (e) (i) 0
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TOTAL EQUITIES 455,355
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TOTAL LONG-TERM INVESTMENTS 167.8%
(Cost $62,910,264) 61,656,952
REPURCHASE AGREEMENT 4.3%
State Street Bank & Trust Co. ($1,559,000 par
collateralized by U.S. Government obligations in a
pooled cash account, interest rate of 2.70%, dated
03/31/05, to be sold on 04/01/05 at $1,559,117) 1,559,000
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(Cost $1,559,000)
TOTAL INVESTMENTS 172.1%
(Cost $64,469,264) 63,215,952
OTHER ASSETS IN EXCESS OF LIABILITIES 3.6% 1,332,428
PREFERRED SHARES (INCLUDING ACCRUED DISTRIBUTIONS) (75.7%) (27,818,218)
-------------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0% $36,730,162
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Percentages are calculated as a percentage of net assets
applicable to common shares.
(a) 144A securities are those which are exempt from
registration under Rule 144A of the Securities Act of
1933, as amended. These securities may only be
resold in transactions exempt from registration which
are normally those transactions with qualified
institutional buyers.
(b) Variable rate security. Interest rate shown is that in
effect at March 31, 2005.
(c) Non-income producing as security is in default.
(d) This borrower has filed for protection in federal
bankruptcy court.
(e) Market value is determined in accordance with
procedures established in good faith by the Board of
Trustees.
(f) Security is a "step-up" bond where the coupon
increases or steps up at a predetermined date.
(g) Payment-in-kind security.
(h) These securities are restricted and may be resold
only in transactions exempt from registration which
are normally those transactions with qualified
institutional buyers. Restricted securities comprise
0.4% of net assets applicable to common shares.
(i) Non-income producing security.
Item 2. Controls and Procedures.
(a) The Trust's principal executive officer and principal financial officer have
concluded that the Trust's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Trust in this Form N-Q
was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
(b) There were no changes in the Trust's internal control over financial
reporting that occurred during the registrant's fiscal quarter that has
materially affected, or is reasonably likely to materially affect, the Trust's
internal control over financial reporting.
Item 3. Exhibits.
(a) A certification for the Principal Executive Officer of the registrant
is attached hereto as part of EX-99.cert.
(b) A certification for the Principal Financial Officer of the registrant
is attached hereto as part of EX-99.cert.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Van Kampen High Income Trust II
By: /s/ Ronald E. Robison
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Name: Ronald E. Robison
Title: Principal Executive Officer
Date: May 19, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ Ronald E. Robison
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Name: Ronald E. Robison
Title: Principal Executive Officer
Date: May 19, 2005
By: /s/ James W. Garrett
--------------------
Name: James W. Garrett
Title: Principal Financial Officer
Date: May 19, 2005