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: Anne F. Ackerley, Chief Executive Officer, BlackRock
MuniYield Arizona Fund, Inc., 55 East 52nd Street, New York, NY 10055.
Registrants telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 07/31/2010
Date of reporting period: 04/30/2010
Item 1 Schedule of Investments
Schedule of Investments April 30, 2010 (Unaudited)
BlackRock MuniYield Arizona Fund, Inc. (MZA)
(Percentages shown are based on Net Assets)
Par | |||
Municipal Bonds | (000) | Value | |
Arizona 131.5% | |||
County/City/Special District/School District 51.2% | |||
City of Glendale Arizona, RB (NPFGC), | |||
5.00%, 7/01/25 | $ 2,305 | $ 2,437,007 | |
City of Tucson Arizona, COP (AGC), | |||
5.00%, 7/01/29 | 1,000 | 1,026,570 | |
County of Pinal Arizona, COP: | |||
5.00%, 12/01/26 | 1,250 | 1,250,450 | |
5.00%, 12/01/29 | 1,250 | 1,233,050 | |
Downtown Phoenix Hotel Corp., RB, | |||
Senior Series A (FGIC), 5.00%, | |||
7/01/36 | 915 | 738,478 | |
Gila County Unified School District | |||
No. 10-Payson Arizona, GO, School | |||
Improvement Project of 2006, | |||
Series A (AMBAC), 5.25%, 7/01/27 | 1,000 | 1,027,570 | |
Gilbert Public Facilities Municipal | |||
Property Corp. Arizona, RB, 5.50%, | |||
7/01/27 | 2,000 | 2,159,700 | |
Gladden Farms Community Facilities | |||
District, GO, 5.50%, 7/15/31 | 750 | 585,930 | |
Greater Arizona Development Authority, | |||
RB, Santa Cruz County Jail, Series 2, | |||
5.25%, 8/01/31 | 1,000 | 1,039,270 | |
Maricopa County Community College | |||
District Arizona, GO, Series C, 3.00%, | |||
7/01/22 | 1,000 | 958,450 | |
Maricopa County Elementary School | |||
District No. 3-Tempe Elementary | |||
Arizona, GO, Refunding (NPFGC), | |||
7.50%, 7/01/10 | 290 | 293,257 | |
Maricopa County Public Finance Corp., | |||
RB, Series A (AMBAC), 5.00%, | |||
7/01/24 | 2,500 | 2,633,950 | |
Maricopa County Unified School District | |||
No. 11-Peoria Arizona, GO, School | |||
Improvement, Second Series | |||
(NPFGC), 5.00%, 7/01/25 | 430 | 454,609 | |
Maricopa County Unified School District | |||
No. 89-Dysart Arizona, GO, School | |||
Improvement Project of 2006, | |||
Series C, 6.00%, 7/01/28 | 1,000 | 1,110,910 | |
Mohave County Unified School District | |||
No. 20 Kingman, GO, School | |||
Improvement Project of 2006, | |||
Series C (AGC): | |||
5.50%, 7/01/20 | 1,150 | 1,318,326 | |
5.00%, 7/01/26 | 1,000 | 1,068,940 |
Par | |||
Municipal Bonds | (000) | Value | |
Arizona (continued) | |||
County/City/Special District/School District (concluded) | |||
Phoenix Civic Improvement Corp., RB, | |||
Subordinate, Civic Plaza Expansion | |||
Project, Series A (NPFGC), 5.00%, | |||
7/01/35 | $ 3,325 | $ 3,356,421 | |
Queen Creek Improvement District | |||
No. 1, Special Assessment Bonds, | |||
5.00%, 1/01/32 | 2,000 | 1,826,900 | |
Scottsdale Municipal Property Corp. | |||
Arizona, RB, Water & Sewer | |||
Development Project, Series A, | |||
5.00%, 7/01/24 | 1,500 | 1,645,200 | |
Scottsdale Municipal Property Corp. | |||
Arizona, Refunding RB, 5.00%, | |||
7/01/26 | 1,570 | 1,783,708 | |
Vistancia Community Facilities District | |||
Arizona, GO: | |||
6.75%, 7/15/22 | 1,275 | 1,301,214 | |
5.75%, 7/15/24 | 750 | 743,468 | |
Yuma County Library District, GO | |||
(Syncora), 5.00%, 7/01/26 | 1,465 | 1,521,197 | |
31,514,575 | |||
Education 15.0% | |||
Arizona State University, RB, | |||
Series 2008-C: | |||
6.00%, 7/01/25 | 970 | 1,103,278 | |
6.00%, 7/01/26 | 745 | 842,930 | |
6.00%, 7/01/27 | 425 | 478,979 | |
6.00%, 7/01/28 | 300 | 337,218 | |
Maricopa County IDA Arizona, RB, | |||
Arizona Charter Schools Project, | |||
Series A, 6.63%, 7/01/20 | 900 | 693,405 | |
Pima County IDA, RB: | |||
American Charter Schools | |||
Foundation, Series A, 5.63%, | |||
7/01/38 | 500 | 395,500 | |
Arizona Charter Schools Project, | |||
Series C, 6.70%, 7/01/21 | 725 | 725,022 | |
Arizona Charter Schools Project, | |||
Series C, 6.75%, 7/01/31 | 985 | 950,003 | |
Pima County IDA, Refunding RB: | |||
Arizona Charter Schools Project, | |||
Series O, 5.00%, 7/01/26 | 1,000 | 808,950 | |
Charter Schools II, Series A, 6.75%, | |||
7/01/21 | 575 | 575,345 |
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 following list:
AGC | Assured Guaranty Corp. | GNMA | Government National Mortgage Association |
AMBAC | American Municipal Bond Assurance Corp. | GO | General Obligation Bonds |
AMT | Alternative Minimum Tax (subject to) | IDA | Industrial Development Authority |
CAB | Capital Appreciation Bonds | NPFGC | National Public Finance Guarantee Corp. |
COP | Certificates of Participation | RB | Revenue Bonds |
FGIC | Financial Guaranty Insurance Co. | S/F | Single-Family |
BLACKROCK MUNIYIELD ARIZONA FUND, INC.
APRIL 30, 2010
1
Schedule of Investments (continued)
BlackRock MuniYield Arizona Fund, Inc. (MZA)
(Percentages shown are based on Net Assets)
Par | |||
Municipal Bonds | (000) | Value | |
Arizona (continued) | |||
Education (concluded) | |||
University of Arizona, COP, Refunding, | |||
University of Arizona Projects, Series A | |||
(AMBAC), 5.13%, 6/01/29 | $ 905 | $ 917,435 | |
University of Arizona, COP, University of | |||
Arizona Projects, Series B (AMBAC), | |||
5.00%, 6/01/28 | 1,400 | 1,412,684 | |
9,240,749 | |||
Health 17.6% | |||
Arizona Health Facilities Authority, RB, | |||
Catholic Healthcare West, Series A, | |||
6.63%, 7/01/20 | 1,435 | 1,462,796 | |
Arizona Health Facilities Authority, | |||
Refunding RB, Banner Health, | |||
Series D: | |||
6.00%, 1/01/30 | 1,500 | 1,536,555 | |
5.50%, 1/01/38 | 1,300 | 1,322,659 | |
Maricopa County IDA Arizona, Refunding | |||
RB, Series A: | |||
Catholic Healthcare West, 5.50%, | |||
7/01/26 | 1,850 | 1,886,371 | |
Samaritan Health Services, | |||
(NPFGC), 7.00%, 12/01/16 (a) | 1,000 | 1,219,020 | |
Tucson IDA, RB, Christian Care Project, | |||
Series A (Radian), 6.13%, | |||
7/01/10 (b) | 1,000 | 1,018,690 | |
University Medical Center Corp. Arizona, | |||
RB, 6.50%, 7/01/39 | 500 | 532,990 | |
Yavapai County IDA Arizona, RB, | |||
Yavapai Regional Medical Center, | |||
Series A, 6.00%, 8/01/33 | 1,800 | 1,810,332 | |
10,789,413 | |||
Housing 7.5% | |||
Maricopa County & Phoenix Industrial | |||
Development Authorities, Refunding | |||
RB, AMT (GNMA), S/F: | |||
Series A-1, 5.75%, 5/01/40 | 680 | 710,165 | |
Series A-2, 5.80%, 7/01/40 | 490 | 498,879 | |
Maricopa County IDA Arizona, RB, Series | |||
3-B, AMT (GNMA), 5.25%, 8/01/38 | 987 | 1,005,706 | |
Phoenix & Pima County IDA, RB, Series | |||
1A, AMT (GNMA), 5.65%, 7/01/39 | 468 | 486,497 | |
Phoenix & Pima County IDA, Refunding | |||
RB, Series 2007-1, AMT (GNMA), | |||
5.25%, 8/01/38 | 970 | 976,666 | |
Phoenix IDA Arizona, Refunding RB, | |||
Series 2007-2, AMT (GNMA), 5.50%, | |||
8/01/38 | 889 | 929,773 | |
4,607,686 | |||
State 16.8% | |||
Arizona School Facilities Board, COP: | |||
5.13%, 9/01/21 | 1,000 | 1,079,540 | |
5.75%, 9/01/22 | 2,000 | 2,227,920 |
Par | |||
Municipal Bonds | (000) | Value | |
Arizona (concluded) | |||
State (concluded) | |||
Arizona Sports & Tourism Authority, RB, | |||
Baseball Training Facilities Project, | |||
5.00%, 7/01/16 | $ 1,000 | $ 1,023,750 | |
Arizona State Transportation Board, RB, | |||
Series B, 5.00%, 7/01/30 | 4,000 | 4,270,440 | |
Greater Arizona Development Authority, | |||
RB, Series B (NPFGC), 5.00%, | |||
8/01/30 | 1,700 | 1,735,275 | |
10,336,925 | |||
Transportation 4.3% | |||
Phoenix Civic Improvement Corp., RB | |||
Senior Lien: | |||
Series A, 5.00%, 7/01/33 | 1,000 | 1,015,350 | |
Series B, AMT (NPFGC), 5.75%, | |||
7/01/17 | 1,000 | 1,038,170 | |
Series B, AMT (NPFGC), 5.25%, | |||
7/01/32 | 600 | 598,398 | |
2,651,918 | |||
Utilities 19.1% | |||
City of Mesa Arizona, RB (NPFGC), | |||
5.00%, 7/01/23 | 1,500 | 1,658,805 | |
City of Mesa Arizona, Refunding RB | |||
(NPFGC), 5.00%, 7/01/20 | 1,000 | 1,112,430 | |
Gilbert Water Resource Municipal | |||
Property Corp., RB, Subordinate Lien | |||
(NPFGC), 5.00%, 10/01/29 | 900 | 928,089 | |
Phoenix Civic Improvement Corp., RB, | |||
Junior Lien (NPFGC), 5.50%, 7/01/20 | 2,500 | 2,701,725 | |
Phoenix Civic Improvement Corp., | |||
Refunding RB, Senior Lien, 5.50%, | |||
7/01/22 | 2,000 | 2,272,840 | |
Pinal County IDA Arizona, RB, San | |||
Manuel Facility Project, AMT, 6.25%, | |||
6/01/26 | 500 | 432,075 | |
Salt River Project Agricultural | |||
Improvement & Power District, RB, | |||
Series A, 5.00%, 1/01/24 | 1,000 | 1,095,860 | |
Salt River Project Agricultural | |||
Improvement & Power District, | |||
Refunding RB, Salt River Project, | |||
Series A, 5.00%, 1/01/35 | 1,500 | 1,556,070 | |
11,757,894 | |||
Total Municipal Bonds in Arizona | 80,899,160 | ||
Guam 1.6% | |||
Utilities 1.6% | |||
Guam Government Waterworks | |||
Authority, Refunding RB, Water, | |||
5.88%, 7/01/35 | 1,000 | 980,970 | |
Total Municipal Bonds in Guam | 980,970 |
2 BLACKROCK MUNIYIELD ARIZONA FUND, INC.
APRIL 30, 2010
Schedule of Investments (continued)
BlackRock MuniYield Arizona Fund, Inc. (MZA)
(Percentages shown are based on Net Assets)
Par | |||
Municipal Bonds | (000) | Value | |
Puerto Rico 20.8% | |||
County/City/Special District/School District 1.3% | |||
Puerto Rico Sales Tax Financing Corp., | |||
Refunding RB, CAB, Series A (NPFGC), | |||
5.76%, 8/01/41 (c) | $ 5,000 | $ 789,750 | |
Housing 2.2% | |||
Puerto Rico Housing Finance Authority, | |||
Refunding RB, Subordinate, Capital | |||
Fund Modernization, 5.50%, | |||
12/01/18 | 1,250 | 1,366,825 | |
State 7.3% | |||
Commonwealth of Puerto Rico, GO, | |||
Series A, 6.00%, 7/01/38 | 800 | 839,376 | |
Puerto Rico Public Buildings Authority, | |||
Refunding RB, Government Facilities: | |||
Series M-3, (NPFGC), 6.00%, | |||
7/01/28 | 900 | 946,737 | |
Series N, 5.50%, 7/01/27 | 1,000 | 1,021,280 | |
Puerto Rico Sales Tax Financing Corp., | |||
RB, First Sub-Series A, 6.38%, | |||
8/01/39 | 1,500 | 1,684,245 | |
4,491,638 | |||
Transportation 2.9% | |||
Puerto Rico Highway & Transportation | |||
Authority, Refunding RB: | |||
Series AA (NPFGC), 5.50%, | |||
7/01/18 | 900 | 978,849 | |
Series CC, 5.50%, 7/01/31 | 790 | 825,329 | |
1,804,178 | |||
Utilities 7.1% | |||
Puerto Rico Aqueduct & Sewer | |||
Authority, RB, Senior Lien, Series A | |||
(Radian), 6.00%, 7/01/44 | 2,180 | 2,269,663 | |
Puerto Rico Electric Power Authority, RB, | |||
Series WW: | |||
5.38%, 7/01/24 | 1,000 | 1,057,100 | |
5.50%, 7/01/38 | 1,000 | 1,027,050 | |
4,353,813 | |||
Total Municipal Bonds in Puerto Rico | 12,806,204 | ||
Total Municipal Bonds 153.9% 94,686,334 | |||
Municipal Bonds Transferred to Tender | |||
Option Bond Trusts (d) | |||
Arizona 5.1% | |||
Utilities 5.1% | |||
Phoenix Civic Improvement Corp., RB, | |||
Junior Lien, Series A, 5.00%, 7/01/34 | 3,000 | 3,139,050 |
Value | ||
Total Municipal Bonds Transferred to | ||
Tender Option Bond Trusts 5.1% | $ 3,139,050 | |
Total Long-Term Investments | ||
(Cost $96,485,242) 159.0% 97,825,384 | ||
Short-Term Securities | Shares | |
CMA Arizona Municipal Money Fund, | ||
0.00% (e)(f) | 2,552,036 | 2,552,036 |
Total Short-Term Securities | ||
(Cost $2,552,036) 4.1% | 2,552,036 | |
Total Investments | ||
(Cost $99,037,278*) 163.1% | 100,377,420 | |
Other Assets less Liabilities 2.4% | 1,457,236 | |
Liability for Trust Certificates, Including Interest | ||
Expense and Fees Payable (2.4)% | (1,501,213) | |
Preferred Shares, at Redemption Value (63.1)% | (38,804,830) | |
Net Assets Applicable to Common Shares 100.0% $ | 61,528,613 |
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2010, as computed for federal income tax purposes, were as
Aggregate follows: cost | $ 97,617,608 |
Gross unrealized appreciation | $ 2,878,946 |
Gross unrealized depreciation | (1,619,134) |
Net unrealized appreciation | $ 1,259,812 |
(a) Security is collateralized by Municipal or US Treasury obligations.
(b) 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.
(c) Represents a zero-coupon bond. Rate shown reflects the current yield as
of report date.
(d) Securities represent bonds transferred to a tender option bond trust in
exchange for which the Fund acquired residual interest certificates.
These securities serve as collateral in a financing transaction.
(e) Investment in companies considered to be affiliate of the Fund during the
period, for purposes of Section 2(a)(3) of Investment Act of 1940 were as
follows:
Shares | Shares | ||||
Held at | Held at | ||||
July 31, | Net | April 30, | |||
Affiliate | 2009 | Activity | 2010 | Income | |
CMA Arizona | |||||
Municipal | |||||
Money Fund | 4,187,171 | (1,635,135) | 2,552,036 | -- | |
(f) Represents the current yield as of report date. |
BLACKROCK MUNIYIELD ARIZONA FUND, INC.
APRIL 30, 2010
3
Schedule of Investments (concluded)
BlackRock MuniYield Arizona Fund, Inc. (MZA)
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
assets and liabilities
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 or liabilities 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 circumstances, 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 methodologies 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 Funds most recent
financial statements as contained in its semi-annual report.
The following table summarizes the inputs used as of April 30, 2010 in
determining the fair valuation of the Fund's investments:
Investments in Securities
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
Assets: | ||||
Long-Term | -- | -- | ||
Investments1 | $ 97,825,384 | $ 97,825,384 | ||
Short-Term | -- | -- | ||
Securities | $ 2,552,036 | 2,552,036 | ||
Total | $ 2,552,036 | $ 97,825,384 | -- | $ 100,377,420 |
1See above Schedule of Investments for values in each sector.
BLACKROCK MUNIYIELD ARIZONA FUND, INC.
APRIL 30, 2010
4
Item 2 Controls and Procedures
2(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 13(a)-15(b) under the Securities Exchange Act of 1934, as amended.
2(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) that occurred during the registrant's last fiscal quarter
that have materially affected, or are reasonably likely to materially affect, the registrant's
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/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer of
BlackRock MuniYield Arizona Fund, Inc.
Date: June 28, 2010
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/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield Arizona Fund, Inc.
Date: June 28, 2010
By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniYield Arizona Fund, Inc.
Date: June 28, 2010